The OZ Economy 

Banks Behaving Badly? ANZ looking to cut 3,500 positions. Bellweather?

ANZ to cut 3,500 jobs in next year in broader restructure ANZ announces a restructure that will see thousands of roles go and fewer contracts with consultants and third parties. www.abc.net.au

Australia is modestly overvalued with the CAPE around 21, however there are voices sounding the alarm. Because Australia's index is heavily weighted to large cap stocks, any fall in those valuations would drag the whole market down with it.  

Regal's Phil King warns of blue-chip bubble on the ASX The high-profile stock picker says he is avoiding large caps, which he believes have been excessively bid up by the superannuation funds. www.afr.com

This Time is Different (Again). No more economic or capital cycles apparently. And as usual, the world will never be the same again. 

"This time really is different": Viktor Shvets' dystopian inve... A jobs apocalypse, vanishing moats and broken cycles. Macquarie's Viktor Shvets mapped a chilling future for investors at Livewire Live. www.livewiremarkets.com

Lesson of the Week

It doesn't ever look different? It's the same cycle played out in every bull market. The introduction of some new 'thing'. This time it's Artificial Intelligence which will change the world economic system permanently.  

So valuation doesn't matter any more. Nor mean reversion. Colour me skeptical.

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