Stocks and sectors for a low interest rate setting
Anton Tagliaferro, Investment Director at Investors Mutual, says overall industrial stocks did reasonably well this reporting season. In particular he points out sectors such as gaming, healthcare, packaging and utilities as areas of relative strength. He says that volatility and growth concerns globally have confirmed in his mind that interest rates are going to stay low and stay low “for a long, long time.” Against this backdrop he believes quality industrial companies offer investors compelling value. He says that while some of them have had a little bit of a bounce recently they are still pretty close to the bottom. “I think when you can buy good quality stocks like Spark Infrastructure and Pact Group on yields of 5 to 7 percent with recurring, defensive earnings and a little bit of growth – I think those stocks on any weakness are a buy.” Watch the full discussion here: (VIEW LINK)
2 stocks mentioned
Investors Mutual Limited (IML) is a specialist Australian equities fund manager and was established in May 1998 by Anton Tagliaferro. Based in Sydney, the IML team applies a conservative value-based investment style with a long-term focus.