Paul Skamvougeras, of Perpetual says value in the Australian market is very much a relative argument, as absolute value remains elusive

Paul Skamvougeras, of Perpetual says value in the Australian market is very much a relative argument, as absolute value remains elusive. His thinking is reflected in current high cash holdings in two of his funds. I never feel that cash is burning a hole in my pocket. I think cash actually provides you with a lot of flexibility, so when opportunities arise, I have the ability to act on those opportunities. Boral is one stock that Skamvougeras says looks relatively attractive. There's a lot of leverage in the earnings that's going to come through in the next two to three years. And given that expectations for interest rates are probably going to be lower for longer, that's supportive. Also, with the infrastructure spend that the government has talked about in the next three years, that will also be a bit of wind to their back. Via AFR (requires log-in): (VIEW LINK)


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