Over the next 1-2 months we believe there’s a very good chance of a 5-10% pullback by the local market although considering the strength of heavyweights Commonwealth Bank (CBA) and BHP Group (BHP) we feel it’s more likely to be at the shallower end of the scale. Hence we are relatively cashed up across our portfolios looking for some opportunities to increase our core equity exposure – the 24% pullback in CAR from its late 2020 high was enough to spike our interest yesterday.
The local market has only turned marginally lower in the last few days and our call is far from confirmed but an imperative ingredient of successful investing is preparation hence today I’ve looked at 3 local stocks that have exhibited recent weakness without meaningful specific company news. We are simply looking to identify more candidates and optimum entry levels for our “May / June Shopping List”.
