Morning Report Friday 10 April 2015
As most of you know, while I still see a little further upside in equities, I believe a 10-15% correction is looming for US equities – see chart 1. I am advocating slowly moving away from concentrated “yield chasing” portfolio, to a more diverse and growth orientated stance. This is a clear move away from my usual investment philosophy, which is similar to Mr Buffett’s, but with a potential decent correction looming, I prefer not to be with the crowd.
• “Keep all your eggs in one basket, but watch that basket closely.” – Warren Buffett.
One thing I am very confident of is we will get more takeovers/mergers this year, following the likes of Bradken (BKN), iiNet (IIN), PanAust (PNA) and Toll (TOL). Investors only have to look at a chart of Macquarie (MGQ), a large beneficiary of corporate activity, to see the market agrees with my view – see chart 5. Three stocks that may be in suitors crosshairs are discussed briefly below:
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