Two hot thematics we’re avoiding
Chris Stott, Chief Investment Officer at Wilson Asset Management, thinks the Australian market is fairly priced at its current PE of around 15-16 times - slightly above the long-term average. With rate hikes due in the US opening the possibility of a short-term correction, plus the expectation of further rate cuts by the RBA, things are looking relatively positive for the ASX. "The propensity of the US market to outperform the Australian market is quite low when the Australian market we're still going to be reducing the cash rate here for the next 1-2 years to stimulate economic growth and consumer confidence." With cash levels at about 30-35%, close to their long-term average, they're keeping an eye out for company-specific opportunities. Watch the video below for one stock they like, and two hot thematics we're avoiding.
6 stocks mentioned