On the ASX 200
I think the reporting season is also going to be pretty good and dividends might surprise on the upside. So broadly, if we’re sitting here in a couple of years time, I wouldn’t be surprised if the ASX 200 is up around 6000.
On China
Do you really believe a county of 1.4 billion people can generate a GDP number within 17 days of the end of the quarter? It’s a bit hard to believe.
On favourite stocks
I think the banks are going to continue to do really well. Telstra is going to continue to do really well. Wesfarmers is going to continue to do really well.
Most of the stocks that I’m highest conviction on are all big industrials that pay 5, 6% fully franked dividends.
On strategy
Broadly though, people are so short-sighted at the moment, the real value in the share market is just being an investor.
If you just hold the right stocks, collect dividends, those dividends grow, and you use those franking credits, I think that strategy will reward you very well in a low interest rate environment over the next few years.
To see everything Charlie had to say in our exclusive interview for Switzer Super Report subscribers, watch the video on Super TV [1].
[1]Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
Also in the Switzer Super Report:
- Barrie Dunstan: Ignore stocks outside the Big Four + one at your peril [2]
- Fundie’s Favourite: Eley Griffiths on STW Communications (SGN) [3]
- Ron Bewley: Discretionary sector – FOX and Crown the pick of the bunch [4]
- Penny Pryor: Buy, Sell, Hold – what the brokers say [5]
- Tony Negline: Everything old is new again [6]
- Paul Rickard: Question of the week – pre-retirement assistance needed [7]