I spoke with Swiss financial television station Dukascopy TV about geopolitical event uncertainty, Australian AGM season and how can investors be smarter in their stock selection. Over the last 20 years, big positions in traditional Australian blue chip stocks have been rewarding for investors. BHP Billiton Limited and Rio Tinto Limited enjoyed an Australian commodities boom and the big four banks enjoyed low defaults and rising house prices, almost perfect post financial crisis conditions. However these larger ‘Blue Chip” stocks all have features that restrain them from significant earnings growth for the foreseeable future. It’s time to be smarter with stock selection and have an open mind to changing from what has worked over the last 20 years, to what is likely to work in the next 20. Investors need to know what companies they own and why they own them, the equities market will be rewarding companies able to grow earnings and produce sustainable dividends.
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