MM moved underweight banks in recent months and the pullback we have been waiting for is unfolding nicely, our favourite 3 to add some diversity across the Growth portfolio are likely to require the underlying indices to reach our target areas but that feels increasingly likely at this stage:
- We like UK facing VUK closer to $3, very attainable for this volatile beast.
- Also as previously discussed we like the Bank of Queensland (BOQ) ~$8.25, at this stage the regionals are holding up much better than the “Big Four” but this can change in the blink of an eye.
- Lastly if Westpac (WBC) does correct another 6-7% we like it around $23.
NB We would only consider one of the above and no more than a 5% weighting.
MM likes VUK ~$3
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