October saw a sudden rally on the ASX as the local market finally started to catch up with the global equity rally. This is driven by strengthening world growth, ongoing strong liquidity flows from accommodative central banks, and a deteriorating outlook for bond prices as some central banks seek to reduce this stimulus. Investors prefer risk assets like equities over bonds at the moment. In this video version of The View John and David also discuss ANZ’s 2017 result and share price rally, Macquarie’s buyback announced with its result and Woolworths’ first-quarter sales update. Clime funds and the StocksInValue model portfolio are riding the rally but are also watchful for speculative behaviour in equity markets.

Clime Asset Management owns shares in ANZ, MQG and WOW on behalf of mandates for which it acts as investment manager. David Walker owns shares in ANZ and WOW.