Equity Engineer – July 2015 | Market showing value after Grexit and Chiquities scare

Market View: We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. RBA move in February and May have made equities as the preferred risk/return option for investors wanting more than bond yield return in a rising cost environment. We expect global investors to come back in to Australian equity market when the currency gets below 70 cents. The recent profit taking has brought the market down below where we see market’s yield weighted fair value. Long term investors should accumulate good quality growth/yield stocks. Preferred Sectors: Australian Gold Miners, Transport Infrastructure, Global Consumer Services, Diversified Media, Health Care, Banks, Diversified Financials, Information Technology and Telecommunication Services. (VIEW LINK)