Viewpoint: Bullish
In line with our bullish outlook towards stocks and a pullback for bond yields & the $US we can see a sharp bounce for emerging markets into Christmas.
In line with our bullish outlook towards stocks and especially tech over the coming months we like the ASX listed NDQ ETF for exposure to US tech.
The huge US-based asset management company has a strong track record of using downturns to its advantage.
The ‘Guac’ will generally rise to the top, and this chain of Mexican Restaurants has a lot going for them in this type of tough economic environment.
A recent acquisition for the portfolio is Disney. Like its peers, DIS US has had a tough 12 months with the share price more than halving, we think a recovery is around the corner.
The environmentally focussed industrial company last week successfully raised equity and announced a very interesting global licencing deal.
The audio-visual chip maker rallied more than 10% yesterday on strong AGM comments – and we think this is just the start.
Share prices typically react to new news, outcomes that are not currently factored into the market. Clearly, property has been hit hard over the past year with this property-focused fund manager down 55% YTD, however, what if a ‘less bearish’ outcome prevails? What assumptions have been built into CNI’s current guidance for flat YoY earnings?
Identifying stocks that could/should rally in the near term requires a catalyst. For APA that catalyst has more to do with the stock being sold down 25% in the two months from August to early October.
Around $4, we think Metcash should attract yield-hungry investors that pocket the dividend from the banks and look for the next ‘pay-day’. While we have covered the investment thesis on MTS a number of times (available on the company page here), the brief version is:
