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Equity Financial Engineer | Bank on the big four for the yield trade

Mathan Somasundaram

Macro outlook: Low growth and low interest rates remain the key risks for financial stocks as global economies move from one disaster to another. The turnaround big banks offer better value in low growth outlook as they have relatively lower housing exposure and trade at a discount. Preferred picks are... Show More

SHIELD – Sustainable High Yield | Yield trade outperforming market selloff

Mathan Somasundaram

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

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market started negative and then had a slight recovery before the close. The selling looks to be global investors selling out of Australia for currency worry on both equities and bonds. All the macro signals from US Fed, China and the domestic economy points to lower currency and hence... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market was taken down today by WOW and NAB with a bit of overseas investor selling thrown in the mix. WOW result was expected to be bad and it was very bad. WOW around $24-25 remains a good long term yield buy idea on the restructure play. We have... Show More

Don't bank on it getting better

Roger Montgomery

Invest for the long-term. That’s the catchcry of a phalanx of advisers since investing in equities emerged from the shadow of railway bonds. But investing for the long-term only makes sense if you invest in extraordinary businesses. The longer you stay invested in mediocre businesses the greater your loss in... Show More

Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market remains aimless and flat as it waits for central bankers to set the tone. The week of the central bankers will kick of tomorrow with US Fed and even PBOC may come to the market on their outlook. The best performing sectors were Gold, Health Care and Telcos... Show More

6 STOCKS TO BUY, HOLD & SELL

Matt Felsman

Sectors that have run strongly on rate cut thinking may ease. My view is that the “yield play” has run its course and now is the time to look for high quality growth stocks. The telecommunication industry consolidation, and the trades to be had. Stocks with exposure to mergers, acquisitions... Show More

Australian Bank Review – May 2015

Matt Felsman

A banking wrap following last week’s reporting and the RBA cutting the official cash rate to 2.0%. WBC had a soft 1H15 result, with cash earnings of $3.778b around 2% below consensus. We downgraded our forecasts by 1.5%, 3%, and 4% for 2015-2017 and lowered our Price Target from $35.10... Show More