Time to switch back into retail?
Two years ago, retail stocks were performing well, while mining services companies were just about on life support. At the time, switching from one to the other looked like madness. However, investors that did were well rewarded. For example, JB Hi-Fi is off by 27% since its mid-2016 high, while Macmahon is up 83%. But … is the tide now turning back? Should investors take some money off the table from mining services stocks, and deploy selectively in the retail space where Amazon-anxiety has created value. We asked Andrew Mitchell from Ophir, and Prasad Patkar from Platypus for their take on these two sectors, asking what is driving them, and where the risk and opportunities may lie.
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Buy Hold Sell is a weekly video series exclusive to Livewire. In each episode two fund managers give their views 'Buy, Hold or Sell' on five ASX listed companies. Not recommendations, please read the disclaimer and seek advice where appropriate.