Viewpoint: Bullish
SGP is a diversified REIT which has enjoyed the recent strong housing market, residential sales grew by almost 70% in Q3 and inquiries remain 40% above the long-term average
There is clear steady demand coming through over the coming years until we see a decline for a few years before a massive pick up from 2000. Assuming interest rates are relatively accommodative in the 2030’s, Australian property looks set to enjoy a another strong decade.
These fresh buyers are pushing up prices especially at the lower end of the market and unless the trend changes we should see a few more years support as these young adults flee the coup / stop renting
The $US index again dipped back under 90 overnight helping support commodity prices although their gains were muted which is to be expected on a holiday.
The trends bullish and at this stage stocks are accelerating to the upside suggesting buying pullbacks is the best way to add value / alpha.
MM is considering buying a regional bank if we see them continue to underperform the “Big Four” with BOQ now looking interesting around $8.25.
DXS +0.48%: one of the strong names in the REITs today was office landlord Dexus which we own in the Income Portfolio.
Precious metals have rallied steadily from their early April low with silver edging up towards its 2021 high. The short-term direction of the complex is likely to be determined by the $US but we remain bullish medium-term believing a break to fresh highs is a matter of time.
Codan (CDA) develops rugged and electronics solutions for international government, corporate, NGO and consumer markets. The company’s line of business includes provision of radio communications, metal detection and tracking solutions.
CDA has been a top ASX performer this year, the company designs & manufactures the likes of radios, metals detectors and mining automation systems with customers including military and intelligence agencies – it’s one of Wilson Asset Managements (WAM) largest holdings.
