Investment Strategy Fourth Quarter 2015

Investment Strategy Q4 2015 is out now and is complimentary for Morgans clients.


Economic outlook

  • United States - stronger growth in 2016 should generate an improving outlook for US earnings
  • China - the Chinese economy isn't bad, it's just misunderstood
  • Australia - RBA rate cuts would provide much needed support for income growth

Stockmarket outlook

  • Based on our targets for the S&P500 (1,845) and the ASX200 (5,420), as we go to print, our modelling suggests that the US market looks 8% too expensive and the Australian market 4% too cheap.
  • We caution that both markets look vulnerable to short term weakness, offering investors accumulation opportunities in our preferred High Conviction and Model Portfolio stocks.

Investment themes

We continue to structure our investing strategies around core themes:

  • Lower for longer domestic rates sustaining premiums for reliable dividend payers
  • International diversification into superior offshore growth dynamics
  • Further weakness in the Australian dollar
  • Premiums for stocks offering capital management and M&A optionality

Asset allocation

  • View our asset allocations and outlook for each asset class.

Equity Model portfolios

  • Track our portfolio performance, their composition and key recent changes


Senior Analyst Tom Sartor:

Download Investment Strategy Q4 2015

Morgans clients can login to view Investment Strategy Fourth Quarter 2015. Alternatively contact your adviser or nearest Morgans office for a copy.

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