Dear %%first_name%%,
You probably know I live between Sydney and Melbourne, spending a lot of time travelling back and forth. On Saturday on a flight up the coast, a pleasant enough bloke introduced himself, wanting to know what I expected would happen to stocks in coming months. He wanted to hear my view and hoped I’d agree with what he thought. And he was keen to let me know all about his expectations for stocks.
He was in the “we could revisit the December lows” camp, which I’m not so sure about. In my article today I outline my reasons for not being in the December lows camp.
After last week’s rally, Paul Rickard asks: what’s next for the major banks and in particular, the market leader, CommBank (CBA), which reported its half-year profit on Wednesday? Read whether Paul thinks it can get back to $80.
And with interim reporting season revving up this week, the stock market will be honing in on company’s outlook statements – with particular interest in what they say about currency. The Australian dollar could be facing stormy weather, which is good news for those Australian companies that report their earnings in US currency, or earn money overseas. In his article today, James Dunn looks at the market’s consensus view on 12 stocks that report in US$.
In Buy, Sell, Hold, – What the brokers say, there was a lot more action on the downgrades side last week, while Julia Lee looks at stocks that have impressed so far in reporting season and offers her favourite pick.
And finally, in our Hot Stock today, CMC Markets’ Chief Market Strategist, Michael McCarthy sees REA group as a buying opportunity but hears alarm bells with GPT.
Enjoy the read and your week!
Sincerely,
Peter Switzer