Ron Dewhurst, the former head of Legg Mason's international asset management business (Legg Mason are the 4th largest listed fund in the US and manage around $700BN) says the search for yield has driven equity markets to be fully valued, particularly in the US, and argues infrastructure is a much better investment. Back in the '90s and 2000s, infrastructure was dominated by investment banks and others who were turbo-charging utilities with debt to get the returns up. Historically, infrastructure has been a yield type of investment. It ticks the box for income. Dewhurst also talks about Australia's future and how we should focus on what we're good at, read the full article here: (VIEW LINK)


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Similar arguments in the Australian today applied to Australian Banks. Investors in the Big Banks such as Argo and UBS are saying it is hard to find the banks attractive at this point and that PE's can't continue to expand. Aitken believes most analysts fail to understand what has been driving investor interest in the banks and that they will continue to rise in line with dividends.