Expert Insights

A rare opportunity rivalled only by the tech wreck

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Livewire Markets

Value investors are on the cusp of a rare opportunity rivalled only by the tech wreck of the late 1990s, says Lazard Asset Management portfolio manager Dr Philipp Hofflin.

Hofflin draws parallels between the Australian share market of March 2000 and now, expecting inflated growth stock valuations to plummet and value stock multiples to increase slightly. He concedes that ways to make "absolute dollars" are thin on the ground in the current enviornment, but says holding reasonably valued stocks can minimise losses.

“In the years since the tech boom, I’ve always said that we’ll never see that again in terms of multiple distortions – it was a one in 100-year event...the internet is only young once," says Hofflin.

“It’s taken stimulus of a scale around 25% of world GDP; day-traders; a pandemic and a lot of unusual things to get us back there, but we’re back there."

In the below video, Hofflin reveals an eclectic mix of Aussie defensive stocks in areas like road and rail, regulated utilities and food retail. He also names some of his team’s favourite “reopening stocks” including a well-known travel company tipped to have "enormous upside".


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You can stay up to date with all of Philipp's latest insights by following him here.


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