Watermark Funds Management run a long/short strategy; Livewire asked CIO Justin Braitling where he thought the market was most complacent and where he sees...

Watermark Funds Management run a long/short strategy; Livewire asked CIO Justin Braitling where he thought the market was most complacent and where he sees opportunity. From a valuation perspective, Braitling notes, that cyclicals have moved strongly in anticipation of increased economic activity. However, Watermark has a less optimistic domestic growth outlook than most economists are forecasting; as a result Braitling sees risks in cyclical stocks following recent strong gains. Moving through the market Braitling says banks are looking fully valued and he remains very cautious on bulk commodities suggesting we are yet to see the full impact of credit tightening in China. He does, however, believe that after a two year bear market there are some select opportunities in the resources sector. These are a few of the stocks and sectors Watermark holds Orocobre (Lithium), Tiger Resources (Copper) and Base Resources (Zircon). Full discussion here