Downgrades ahead in May and June
Matt Haupt, Portfolio Manager at Wilson Asset Management, says that he expects more downgrades to be announced on the ASX in the coming months. Since Malcolm Turnbull raised the possibility of an early election they’ve seen softness in the consumer sector. He raises retail as a particular concern of his. “We’ve started to walk around a few of the shops in Sydney and saw some shops are on a 30% or 40% discount on their entire floor stock. This is a real worrying concern for us that they’re going on discount already. Discounting early is a big trigger for us for a soft retail environment.” Watch the full interview to get his view on a sector he still finds attractive.