How long can the equity rout continue?

There are several reasons why Australian stocks look set to turn around and follow the local currency higher.

Over the last thirty days of trading, the All Ords has pushed higher on only 10 sessions and has posted the worst performance since mid-last year -- down around 9 per cent so far.  Now while few would seriously suggest that the equity bull-run is over, there are legitimate questions over just how long this correction will last -- and whether it’ll extend into deep territory.  I think the winds of change may already be blowing, although I’ll confess up front that it’s hard to be completely sure at this stage. There have been some seemingly bizarre and random price moves of late and the pull-back itself was without cause. But, I think there are four good reasons why a rebound is due soon.



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