SHIELD – Sustainable High Yield | Canada puts yield trade back on the table
We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. Falling growth outlook and the RBA move has made equities the preferred risk/return option for investors wanting more than 3% return. The disparity between the fiscal and monetary policy settings as well as the separation between business and consumer confidence will not help growth recovery. Canada’s latest unexpected rate cut puts the RBA on notice. The high correlation between Australia and Canada, due to the commodity based economies, has driven investors’ expectations for another rate cut from RBA. We continue to expect the yield thematic to continue for the next 12-18 months. SHIELD Top 20 picks are: large cap – CBA, ANZ and TLS; mid cap – MFG, AWC and PPT; small cap – OFX, DSH, CCV, ALU, PTM, IMF, MOC, SGF and PRG ; and micro cap – FRI, NCK, HFA, DDR and SIQ. (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...