The budget (as expected) was not as tough as the pre-budget talk.
However, there still seems to be some work to do to get all of the measures through.
The budget overall was neutral with some good changes coming in. That said businesses continue to have a negative outlook.
I am sure in the coming weeks we will start to hear more of the detail.
Markets have been flat this week with Friday pulling back all of the gains from the week.
It is interesting to note that this time last year the market fell from 5200 to 4650 by the end of June. This is a drop of 10.5% in 6 weeks. Given the strong rally we have seen over the past 11 months the question is will history repeat itself.
If we take a closer look between August 2012 and May 2013 the market rose 30% before pulling back and closing up 17.5%. From July 2013 until now the market has moved up around 13%, the question is will fund managers look to sell down and lock in their profits before the end of the financial year.
I remain long-term positive on the market, but short-term cautious as we head towards the end of the financial year.