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22.06.16

NZ & AU Equity Strategy – keep the faith
Local equity markets are expensive when compared to long-term historic multiples, yet earnings growth is weak. However, when comparing dividend yields to bond yields, equity markets remain attractive.  In this note we outline the reasons behind our expectation that local bond yields will remain low for the medium-term, but not forever.

Position portfolios in defensive, sustainable yield payers, pay for growth, be prepared to take profits, using share price strength to trade out of lower quality names, and start to diversify with some select value exposures

Please refer to the below link for the full article:

file:///C:/Users/Sonya/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/MXXTKPH3/NZ%2520AU%2520Equity%2520Strategy%2520June%252016.pdf

Craigs Investment Partners, 15 June 2016