Hyperion: Look through the short term

Hyperion: Look through the short term. Tim Samway, Managing Director of Hyperion Asset Management highlights a number of issues to be cautious on the Australlian economy. 1) Falling commodity prices placing downward pressure on revenues and profits. 2) An ageing population and high levels of household debt present structural headwinds for economic growth levels and corporate profit growth 3) Lower levels of global growth also create headwinds for the domestic economy. Samway says Hyperion is underweight bank stocks and urges investors to look through the short-term pursuit of yield. Looking 5 years forward rather than 10 minutes forward that is. Their short-term dividends look quite secure but the long-term dividends don't look secure. Our experience from looking for many years at banks is that it all looks rosy until the 10 minutes before it doesn't. Then when bad debts start to explode they suck up whole years worth of profits. In a presentation to investors Samway looks at a selection of Australian companies he believesare well positioned to navigate the current outlook. (requires registration) (VIEW LINK)


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