Before he spoke to The Australian on the weekend, Reserve Bank of Australia governor, Glenn Stevens, was talking down the Aussie dollar in a speech in Hobart a few weeks ago.
“Nonetheless, we think that investors are underestimating the likelihood of a significant fall in the Australian dollar at some point,” he said then.
The Aussie dollar has tried to come off, and will come off more if the economic data in the US continues to be good, everyone gets more comfortable with the idea of QE tapering and the US dollar rises.
Peter mentions a bunch of stocks in his report today that could do well and another one to add to the list is CSL.
“CSL remains an often mentioned company that should do well with a dollar fall – if and when it happens!”
CSL (CSL)
Switzer Super Report expert and owner of FN Arena, Rudi Filapek-Vandyck said on the Switzer TV show on Sky Business last week that the oil and gas sector in Australia is going through a period of transformation.
Origin is turning itself into a major gas player and Rudi’s preference between the two big companies in that sector – Santos and Origin – is for Origin.
“I would switch to Origin myself on a risk-adjusted basis,” he said.
Origin Energy (ORG)
Some are also offering decent yields. Woodside is offering around 6.3% fully franked.
“While admittedly the risk attached to those dividends [is] not the same as Telstra or the banks, a lot of analysts believe they are sustainable,” he said.
Even if they can’t be maintained at these levels, yields should be sustained at levels not much lower.
“More and more people in the SMSF sector are looking to add Woodside to their portfolio because they can’t just add another bank,” he said.
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Also in the Switzer Super Report:
- Peter Switzer: Dollar down! What yield stocks?
- Paul Rickard: The “no brainer” strategy for over 55s
- James Dunn: The top trusts with high yields
- Rudi Filapek-Vandyck: Buy, Sell, Hold – what the brokers say
- Gary Stone: WorleyParsons ready for rise
- Staff Reporter: Spring break for property
