Local markets surged to a record high early this week, with the S&P/ASX200 hitting the 8000 mark. This comes off the back of weaker than expected US inflation data. The gains are the latest in what has been a fruitful run over the past few months.

ASX investors mostly have the big four bank stocks to thank for this latest peak. All four of the big banks, Commonwealth, ANZ, National Australia Bank and Westpac have climbed in recent months, hitting new 52-week highs, with the Commonwealth Bank eclipsing BHP to become Australia’s largest public company. Matthew Kidman, Principal at Centennial Asset Management is tipping an interest rate cut towards the end of the year, which will see the housing market fire up, meaning further good news for the banks.

This is general information only. You should seek professional advice before making investment decisions.