Already a subscriber?VanEck expects the Australian sharemarket to hit 8300 points by the end of the year as the asset manager looks to unloved real estate and retail stocks to make a comeback amid a brighter investment outlook.VanEck says Australia’s big four banks are “vulnerable to a correction”.VanEck portfolio manager Cameron McCormack said real estate investment trusts were primed for a comeback due to more stable interest rate settings and improving investor confidence around valuations.
VanEck’s forecast assumes one of the S&P/ASX 200’s biggest cohorts, the big four banks, are “vulnerable to a correction”, and investors should be wary of being overexposed.“The market seems to be pricing a dream scenario for the banks, despite the risks of a flare-up in mortgage stress in a prolonged higher interest rate environment,” he said.
Citi analyst Brendan Sproules reduced his recommendation on ANZ and Westpac, heaping the pressure on his existing “sell” ratings on Commonwealth Bank and National Australia Bank. Over the past six months, Wesfarmers has jumped more than 28 per cent to $65.63; JB Hi-Fi 39 per cent to $61.89, and Super Retail 23 per cent to $14.90.VanEck projects mid-caps to outperform the benchmark as smaller companies offer more earnings upside through market share expansion, and have historically outperformed in prolonged market recoveries.
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