There is value - if you believe the numbers...

Livewire Exclusive

Livewire Markets

Marcus Padley thinks there’s value to be found in the Australian market at current levels. The yield gap currently favours equities by about 2.5%, which is the biggest gap since the GFC. “We’re at a sentiment point, rather than a scary point,” he says, as there was a bounce in the market from there during the GFC. What has him concerned is that people aren’t buying the banks and Telstra at current prices, he thinks this reflects a level of distrust in their dividends. “The biggest fear factor is that the banks are sitting on loans to energy companies which are going to damage them.” He thinks these fears are misplaced, as CBA, for example, has only 2.5% of their loan book exposed to energy & resources companies. “It’s largely immaterial to them, but that doesn’t stop people selling them.” Watch the full interview below.


MORE ON



1 stock mentioned

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.