We spoke with Sam Ferraro from Evidente in early February about a group of stocks with earnings certainty – Amcor, ASX, Brambles, Ramsay Healthcare, and Coca-Cola Amatil. Since then, all except Brambles have outperformed the ASX200. Some names have pulled back recently, but he says he’s still happy to be overweight these stocks. Underlying inflation began to undershoot the RBA’s target earlier this year by up to 50bps. “Compared to other stocks, they’re reasonably expensive but relative to bonds, they’re still reasonably attractive.” He says that sovereign bonds, rather than other shares, represent the right proxy. With the prospect of interest rates remaining low, he continues to view this theme as attractive. In the video below, he discusses the ongoing shortage of high-quality infrastructure assets.
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