The ASX has lagged behind the majority of its peers interms of rebound from the trough in March 2020, Its underperformance by comparision to the S&P500 or the NASDAQ is not an anomoly but is however built by its own composition.

With the highflying BNPL stocks and a variety of other sectors that carry a high PE ratio, which is ultimatly sensative to inflation, we were all a little worried about bond yields last week.

This week that sentiment has improved with the RBA doubling its asset purchase program to $4 billion.

This essentially puts a floor below ASX equities, and provided Bond markes continue with steady increases rather vapid volatility, then the ASX should be able to reach the 7300 target before 2021 comes to an end.

AUS200 - ASX200 - Long

Mar 02 2021

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