Who's caught on the right and wrong side of disinflation? The sharp drop in the Australian dollar following Wednesday's disappointing gross domestic product...

Brendon Lau

Vantage Point Partners

Who's caught on the right and wrong side of disinflation? The sharp drop in the Australian dollar following Wednesday's disappointing gross domestic product (GDP) number won't be enough to stave off disinflation. This is a good thing for equity investors for the reasons outlined in my blog yesterday but the easing pressure on the cost of living isn't great news for all sectors of the market. Every time economic conditions change, it always creates winners and losers. When faced with sub-par inflation or mild deflation, the stocks that do better tend to be those with dependable and relatively high dividends, non-discretionary offerings, pricing power and/or a significant competitive advantage over their rivals. From that perspective, healthcare-related stocks, including the recently floated Medibank Private (MPL), should one of the best placed sectors to outperform. We are already seeing that happen in more recent times with a number of stocks I have highlighted before. This includes CSL Limited (CSL) and Ramsay Health Care (RHC). Click on the link to find out who else is on the naughty and nice list (VIEW LINK)


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Associate Director - Investor Relations
Vantage Point Partners

I am with Australia's leading small caps investor relations and media relations firm, Media & Capital Partners. I worked as a small caps analyst and journalist prior to MC Partners. Views are my own and should not be regarded as advice or...

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