Stocks to consider in this lower-growth world

Clime Investment Management

Clime Investment Management

One of the continuing influences affecting the Australian equity market is the sober outlook for world growth. Recent economic numbers confirm the world’s economies will continue in a low-growth environment. Our strategy remains... Be patient; invest for the long term, not for the fast gain. The market’s currently overpaying for growth and selling down proven long-term returners, such as financials. High-growth stocks in this environment are becoming more risky because their growth will inevitably peter out. High-growth and high ROE are not sustainable in this low-growth environment. There are very few unique growth opportunities and in the main these are excessively priced. Companies can grow above broader economic growth for a period, but projecting out three to four years of 20 per cent-plus growth is extremely foolish. We believe the best opportunities for real total investment returns (that include low capital gain and high income) in this low-growth environment will be low-but-sustainable-growth, high-yielding stocks. That includes the major banks, CBA, Westpac, NAB and ANZ; the major retailers such as Woolworths and Wesfarmers; infrastructure companies; and the likes of Telstra. (VIEW LINK)


Clime Investment Management
Funds Management & Stock Research
Clime Investment Management

The Clime Group is a respected and independent Australian Financial Services Company, which seeks to deliver excellent service and strong risk-adjusted total returns, closely aligned with the objectives of our clients.

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