GARY - Growth At Reasonable Yield | Central bankers deliver GARY another free kick
We maintain a bullish long term view while short term volatility offers cheaper GARY stocks. Falling growth outlook, slowing China and US Fed holding interest rate cycle will drive market towards yield while growth will be hard to find. The disparity between the fiscal and monetary policy settings as well as the separation between business and consumer confidence has not been positive for the domestic growth recovery. Government leadership change has delivered hope for reform, but we wait to see if it eventuates. Despite the US interest rate cycle about to turn positive in the back end of Q4, we remain positive on the GARY trade to balance the need for growth with yield. GARY Industrial picks are: mid cap (CSR), small cap (SGH, RFG, CWP, GEM, NEC and FXL), micro cap (HFA and MYS). GARY Resource and related picks are: small cap (PRG). (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...