growth at reasonable yield

GARY (Growth At Reasonable Yield) > April 2017 Update

Mathan Somasundaram

GARY identifies companies that are able to deliver growth and yield at a reasonable cost. GARY offers a middle ground when uncertain markets flip flop between growth and yield. Predominantly small cap oriented GARY underperformed over the past month as large caps on stretched multiples continued to outperform. Show More

GARY - Growth At Reasonable Yield | Making macro risk great again

Mathan Somasundaram

Global markets are beginning to digest the stretched valuations, high yields and strong currency ahead of the US Fed meeting. The aggregate policy outlook from the new administration is expected to push up inflation and debt in the process of raising growth. The inflation rally since October has been running... Show More

GARY - Growth At Reasonable Yield | Making inflation great again

Mathan Somasundaram

Global markets are digesting the US election results while the US Fed rate hike in December hangs in the balance. The aggregate policy outlook from the new administration is expected to push up inflation and debt in the process of raising growth. Rising inflation will attract higher interest rates and... Show More

GARY - Growth At Reasonable Yield | Small Cap Industrials continue to dominate

Mathan Somasundaram

Global markets are moving past US Fed and US election worries as the US reporting season starts to test stretched multiples. A recent bond squeeze has delivered a bounce in yields, whilst a medium to long term outlook suggests that bond yields will settle in the slightly higher range from... Show More

GARY - Growth At Reasonable Yield | Small Cap Industrials continue to deliver outperformance

Mathan Somasundaram

Global markets are currently going through the cyclical September pullback on heightened macro concerns. Markets may start to worry about the patches of weakness in US economic growth ahead of the Presidential election. We maintain the view that the US Fed will only move in December and the move will... Show More

GARY - Growth At Reasonable Yield | Small cap dominance continues

Mathan Somasundaram

Slowing global growth and central bank actions are expected to keep interest rates lower for longer. Investors are being pushed into high yielding equities to cater for the rising cost and falling yield environment. We continue to favour an investment strategy mix of growth and yield as markets are trading... Show More

GARY - Growth At Reasonable Yield | Bet each way going into confession season

Mathan Somasundaram

Macro Outlook: Central bank support and weak fiscal reform expected to keep growth and interest rates lower for longer. We continue to favour an investment strategy with a growth outlook that supports a yield premium to bonds as the market moves into the reporting season. GARY (Growth At Reasonable Yield)... Show More

GARY - Growth At Reasonable Yield | Never waste a good crisis

Mathan Somasundaram

Central bank support outlook has seen the market start to stabilise after Brexit worries drove profit taking. GARY (Growth At Reasonable Yield) stocks were not immune to the Brexit selloff as markets moved to reduce risk in low growth outlook. More uncertainty in Europe and Japan will keep the US... Show More

GARY - Growth At Reasonable Yield | GARY goes high as RBA goes Lowe

Mathan Somasundaram

Central bank currency wars, political election cycles and corporate survival mode will continue to put downward pressure on growth rates and interest rates. New RBA governor, Philip Lowe is likely to inherit an economy at the early stages of the new rate cut cycle to fight deflation. The Federal Budget... Show More

GARY - Growth At Reasonable Yield | Built for outperforming in low growth

Mathan Somasundaram

GARY (Growth At Reasonable Yield) screen allows us to pick stocks with good yield, good growth and cheap value multiples compared to the overall historical market trend. Resources and related Service stocks carry higher risk due to global growth worries while Property related stocks carry the bubble risk. Show More

GARY - Growth At Reasonable Yield | Yield helps GARY hold ground in volatility

Mathan Somasundaram

The Australian equity market’s sustainable dividend yield will attract investors in an environment of low rates and low growth. The GARY approach allows the investor to get the exposure to recovering growth with the protection of the yield thematic. Show More

GARY - Growth At Reasonable Yield | GARY holding up better than the market

Mathan Somasundaram

We remain bullish long term while expected short term January profit taking remains after late December rally. US Fed raising rates strengthened the USD and forced China to devaluate the Yuan with the slowing economy. The devaluation of the Yuan has started the rebalancing of manufacturing away from US, Germany... Show More

GARY - Growth At Reasonable Yield | GARY Industrials continue to deliver in rising rate outlook

Mathan Somasundaram

We maintain our bullish long term view while the rise in US interest rate will deliver short term volatility. A recovering global macro, low interest rate environment, falling currency, lower commodity prices, potential stimulus from Europe/China/Japan and domestic rate cuts with weaker economy will help drive domestic equity markets higher.... Show More

GARY - Growth At Reasonable Yield | RFG, FXL, CCP and LLC are the standouts

Mathan Somasundaram

We maintain our bullish long term view while the US interest rate cycle will deliver short term volatility. A recovering global macro, low interest rate environment, falling currency, lower commodity prices, potential stimulus from Europe/China/Japan and domestic rate cuts with weaker economy will help drive domestic equity markets higher. As... Show More

GARY - Growth At Reasonable Yield | Central bankers deliver GARY another free kick

Mathan Somasundaram

We maintain a bullish long term view while short term volatility offers cheaper GARY stocks. Falling growth outlook, slowing China and US Fed holding interest rate cycle will drive market towards yield while growth will be hard to find. The disparity between the fiscal and monetary policy settings as well... Show More

GARY - Growth At Reasonable Yield | RBA becomes GARY's new best mate | We maintain a bullish long term view on the Australian equity market from May 2013,...

Mathan Somasundaram

GARY - Growth At Reasonable Yield | RBA becomes GARY's new best mate | We maintain a bullish long term view on the Australian equity market from May 2013, while pushing back our timeline to 6500 from 2015 to 2016 after earlier than expected decline in commodities, currency, consumer sentiment... Show More