Difficult markets put into perspective

Difficult markets put into perspective. Paul Cuddy from Bennelong Funds Management highlights how challenging current market conditions are by looking at the history of the Dutch 10 year Bond yield. This particular market is currently offering a yield of less than 1% - the lowest ever level in its 500 year history. Cuddy says; That tells us at face value that things are more challenging now than Napoleonic wars, World Wars 1 & 2, the rise and fall of Hitler, The Great Depression and the GFC. Cuddy notes that the Australian equity market is currently expecting around 2.5% top line growth and 3-4 % earnings growth against expected dividend growth of between of between 7-8%. That creates a a very challenging profile for businesses to grow their earnings over the medium to longer term. That distorts market behavior but at the same time it can throw up some fantastic opportunities for us. In this video Paul uses examples such as Ardent Leisure and Ramsay Healthcare to explain the types of investment opportunities they find attractive. @bennelong


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