Deutsche Bank (strategist Tim Baker) has cut its forecast for the Australian sharemarket

(Note: the Aussie market had a big fall yesterday)

  • DB cut its year-end target for the ASX200 to 5600 (DB was previously forecasting 6200)
  • For end of 2016, forecasts the index to hit 6000 (by end 2016)

Baker cites:

  • Historical slow Australian market recoveries
  • Says 13 similar corrections over the last 55 year years
  • None during the bull market period between 1993 and 2007
  • "Given our view that a recession is not imminent, we expect the market to rise in a similar fashion to historical precedents"