Green shoots emerging on the East Coast

Green shoots emerging on the East Coast. Rhett Khessler says whilst low interest rates have continued to support yield plays he feels these tailwinds have now largely run their course. I think we are all getting a little complacent about where interest rates are. 85% of the worlds market cap is in now in interest rate environments that are less than .5% or even negative. Interest rates may stay low for a while longer but they won't stay low forever. Khessler says this dynamic has forced him to work a bit harder to find businesses with growth. One indicator he uses to gauge the health of the economy is pokie turnovers. After 5 years of flat results his field research speaking to floor managers at clubs suggests the last six months have been exceptionally strong. He attributes this to higher amounts of cash now sitting with investors who have had good returns and paid down debt. Khessler says his own fund has experienced good inflows and suggests listed managers like Perpetual, BTIM and Magellan are also likely to benefit. (VIEW LINK)


MORE ON



1 topic

The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.