This is a dip to be bought, not the start of something worse. The 7% pullback in Australian shares over the past month has created an opportunity to go...

Julius Garofali

Shaw Stockbroking

This is a dip to be bought, not the start of something worse. The 7% pullback in Australian shares over the past month has created an opportunity to go overweight in a balanced portfolio. Bonds and cash continue to offer paltry, real value destroying returns, property has become too hot, the Australian dollar has moved - substantially eroding the upside from global equities - leaving Australian shares and their franking credits as the standout for domestic investors. I'm seeing a few blue chip stocks PE's trading below 12x FY15E and with yields around 6% like Australia and New Zealand Banking Grp Ltd (ANZ), Bank of Queensland (BOQ) & Insurance Aust. Grp (IAG) . Before this correction, many commentators anticipated a -10% correction, my guess is we'll probably only fall -8% because asset managers are circling for value & Interest rates are at generational lows which means lack of alternative asset class opportunities.


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Julius Garofali
Senior Private Wealth Adviser
Shaw Stockbroking

Julius Garofali has 13 years experience in financial services encompassing trading, portfolio and risk management, equities, derivatives, funds, bonds and fixed interest. Previous to Shaw's, Julius has client managed some of Europe's largest banks...

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