Have All-Weather Stocks Now Lost Their Appeal ?

Portfolio reshuffling and repositioning for a reversal in trend for global bond yields has not only impacted on share prices for the Big Four banks in Australia. Many of once popular investor favourites have found the going tougher in recent weeks, including the likes of CSL, Ramsay Healthcare and Wesfarmers, while others have suffered serious share price weakness, including REA Group, G8 Education, Greencross and OzForex. Many of these stocks represent some of the most solid, reliable and consistent growth stories in the Australian share market, but sudden relentless falls can be quite disconcerting. This is in particular the case since there have been cracks showing up in the armour of what once was a select group of All-Weather Performers in the Australian share market. Think Woolworths. Think Flight Centre. Think Seek. Has this story now run its course and should investors move on to a different theme? The key answer lies into specific market dynamics that are changing to the detriment of some incumbents. Otherwise, the theme very much remains valid, long term. (VIEW LINK)