In an exclusive interview with Livewire, Nathan Bell, head of research at Intelligent Investor, says investors should prepare for a lower AUD as China's...

Tom McKay
Tom McKay Livewire

In an exclusive interview with Livewire, Nathan Bell, head of research at Intelligent Investor, says investors should prepare for a lower AUD as China's economy makes the transition to a more sustainable growth dynamic. If you told me that, in two to three years, the aussie dollar would be at 50 US cents because the Chinese economy had collapsed and brought the Australian economy down with it, I wouldn't be surprised, says Bell. He believes it is a reasonable outcome as the resources boom must eventually end in a bust. Investors can prepare for this by diversifying their portfolios away from Australia. Bell highlights the opportunity to buy into global businesses on attractive valuations. His stock picks include Tesco, which provides exposure to sterling and is currently trading at 12x earnings with a 4% dividend yield or AIG, which is now trading at a low 0.7x book value.

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