Is Australia really a one trick pony

James Marlay

Livewire Markets

Is Australia really a one trick pony? Alex Leyland from Leyland Private Asset Management points out the indiscriminate sell-off that has occurred in Australian equities despite signs that the economy is transitioning away from mining led growth. The past month has seen the ASX200 drop c.6%. In USD terms, our market is off -12.3% versus MSCI World at -1.0%. Given that iron ore dropped -11.6% over the same period, it would appear that our market continues to be viewed as a commodity currency notwithstanding many other key drivers of our economy. The drop in resource shares along with commodity prices displays the lack of pricing power in these businesses. Interestingly, non-mining GDP rose 2.7% in the past quarter, the fastest rise since 2007. In short, value is rising in stocks and sectors subject to a broad sell-off without reference to fundamentals.


Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

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.