This year should shape up to be a good year for markets as the US economic recovery gathers pace. There will be winners and losers in Australia, but it’s important to look at the overall picture.
Switzer Super Report expert Paul Rickard still likes Woolworths (WOW).
Although it fell by 13.6% in November and went sideways in December, and dragged down the consumer staples sector, at current prices – just under $31 – he says it still offers value.
Woolworths (WOW)
Source: Yahoo!7 Finance, 5 January 2015
Morgans Australia analyst Simon Bond expects that this year we might see some Rockefeller action in the resources sector.
John Rockefeller ran the Standard Oil Company in the early 1990s and was renowned for buying competitors and then shutting them down.
“One of the plays I expect will happen this year will be a Bid / Merger proposal for RIO Tinto from Glencore,” he says.
Rio also still offers a fully franked dividend income.
“A good bet in a tough and challenging environment and a great way to start your 2015 investing strategy. Remember that without energy you have no economy,” Bond says.
And for an overall view of markets, CommSec chief economist Craig James is forecasting total returns in the share market of around 15% and the market to end 2015 around 5900 to 6200.
“As a result, 10-year and 15-year average returns on shares will be around 10%,” he says.
“The share market will be supported by favourable valuations, strong corporate balance sheets, solid US economic growth, a switch of investor affections from property to shares and on-going maturation of the Chinese economy.”
That, of course, is what Peter thinks too – read his report today for more – and his pick is an exchange-traded fund over the ASX/S&P 200 – SPDR ASX/S&P 200 or code STW.
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