Contact’s Australian Equities Portfolios – Ports in a Storm
Australian equities have proven to be a rare beacon of calm during recent global volatility that has engulfed all asset classes. Most of these drivers, and other differentiating factors, remain supportive and could encourage sustained interest from international investors.
This defensiveness and an attractive outlook are due to:
1. Greater exposure to buoyant commodity prices;
2. Less exposure to high multiple growth style tech companies;
3. Greater exposure to banking;
4. Lower inflationary pressures;
5. Greater household indebtedness which limits the rate rises required to slow the economy;
6. Higher savings rates;
7. A$ weakness;
8. Higher dividend yields; and
9. Relatively cheap valuations.
