SHIELD - Sustainable High Yield | Profit taking short term, Yield thematic long term | We maintain a bullish long term view on the Australian equity market to...
SHIELD - Sustainable High Yield | Profit taking short term, Yield thematic long term | We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. The RBA move has made equities the preferred risk/return option for investors wanting more than 3% return in a rising cost environment. We expect global investors to come back in substantial amounts when the currency gets down to low 70s. We see short term profit taking risk in the market after hitting post GFC premium valuation level (i.e. 5900) with yield trade being squeezed by rising bond yields. The substantial dividend money that has been flowing out of the market will come back at the end of the month and support the next leg up. SHIELD Top 20 picks are: large cap - CBA, WBC, ANZ, NAB and TLS; mid cap - AWC and CSR; small cap - PTM, CDD, HIL, MOC, RCR, KMD, CCV and UXC; and micro cap - FRI, DDR, HFA, AFJ and FAN. (VIEW LINK)
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