Building materials set to outperform

Livewire Exclusive

Livewire Markets

Building materials set to outperform. The Building Materials sector will benefit from lower interest rates and is set to outperform in CY15. Having de-rated materially in CY14 these stocks are now relatively inexpensive and offer some of the best value organic growth in the market. Sentiment for the sector deteriorated in 2014 as lead indicators started to peak. Traditionally selling the sector when this occurs has been the right thing to do. However, unlike previous cycles, activity levels are likely to remain robust and sustainable at elevated levels for an extended period. Whilst further interest rate cuts are unlikely to increase activity levels materially, rate cuts should improve sentiment to the sector and see these stocks re-rate back to the earnings multiples they enjoyed in early 2014. Fletcher Building is a good example of this.


1 topic

Livewire Exclusive
Livewire Markets

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

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.

Comments

Sign In or Join Free to comment