Why this market can go higher

Fidelity International

Fidelity International

Paul Taylor, Portfolio Manager at Fidelity Australian Equities Fund, says the market should be trading higher than current levels and provides two key factors that are supportive of this view. Firstly, Taylor says the quality of earnings have improved dramatically since the GFC as companies responded to difficult trading conditions. “As we went through the GFC, which was a near death experience for a lot of companies, they went from the aggressive to the conservative.” Taylor says this conservative approach has persisted in the post-GFC era. The result is superior earnings quality and robust balance sheets across corporate Australia. Secondly, record low interest rates are supportive of higher multiples. However on a PE of 16x and yield of 4.5% the market is only trading around its long-term average. In this short video, Taylor provides more detail on his view.


Fidelity International

Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers - to help our clients build better futures for themselves and generations to come.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.