Morning Report Friday 8th May 2015
It’s amazing what a few weeks can do to markets, it feels like in a few days we have experienced a local rate cut, a bond unwind (rates up), resource sector recovery and an almost collapse in our banking sector – enough for a year! The most important fact to remember is that this is an opportunity and with it unfolding as anticipated we should be prepared to benefit from this volatility. The wonderful factor of corrections / volatility within markets is that it often pulls the quality companies shares lower.
Individual stocks and sectors move independently of the market e.g. Over the last 5 days Westpac (WBC) is down 7% but Fortescue is up 18.9%.
As most readers understand clearly I am targeting ~15% correction from US equities during 2015. However, there is a strong possibility that individual Australian companies will “bottom” way before the low of the US correction if it occurs hence identifying companies you wish to purchase and importantly at what level is vital for successful investing.Four companies that are potentially on my shopping list for 2015 are outlined below.
Show more...
