When comparing price to net asset values (NAVs), at face value the A-REIT sector looks cheap. However, this doesn’t capture the whole picture. We believe NAVs are overvalued due to the impending impact of higher bond yields and uncertainty surrounding asset class demand at a sub-sector level.
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9th Aug, 2023
The upcoming Australian reporting season could be a key catalyst for broader market downgrades. We explore the driving factors including softening demand in cyclical sectors and identify sectors that may be more resilient.
26th Jul, 2023
We delve into five bottom drawer stocks - CSL (CSL), Macquarie (MQG), Worley (WOR), NextDC (NXT), and Netwealth (NWL) - the investing themes they align with and the reasons we believe they should be held over the long-term.
19th Jul, 2023
Including Australian gold miners in our equity portfolio offers several advantages. Their long-term performance, diversification benefits, and potential for outperformance in a rate-cut environment make them an attractive investment at this point of the cycle.
12th Jul, 2023
Despite recent underperformance in the Australian healthcare sector, we maintain our conviction in its potential to regain dominance and deliver compelling returns over the next 12 months.
5th Jul, 2023
The Australian equity market has seen a downward shift in earnings expectations over the past three months, signalling that the market is moving firmly into a downgrade cycle. In the near term, earnings revisions will be an increasingly important driver of relative company performance, in our view.
21st Jun, 2023
14th Jun, 2023
The retail sector has witnessed a sell-off in response to soft trading updates and the prospect of further interest rate hikes, with the rising cost of rent and the sharp increase in the minimum wage further impacting the industry. Retail stocks may appear cheap, considering the recent sell-off. However, a critical consideration is the reliability of earnings reflected in price-to-earnings (PE) ratios.
7th Jun, 2023