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Weâ€™re the richest nation on earth, according to a Credit Suisse report | Australian Immigration Visas
CO2T - Home
CO2T - Home
News Changing times make local miners a good buy
"I think that's one of two strategies that investors are using.
If you think that there is a lot of risk currently being priced in, and we're in for a period of maybe better news -- and by better news I mean things aren't as bad as we thought, Greece is not going to collapse, everything is not going into chaos, the US economy continues to pick up, China glides to a nice soft landing -- then looking for an index rebound, certainly I would be buying those higher beta stocks," Kucukalic says.
"When the market rallies 5 per cent, you want stocks that will rally by 10 per cent.
The big resources stocks are typically high beta, because they are most leveraged to the world growth cycle and commodity prices are highly volatile."
Outside the resources sector, Kucukalic says stocks such as Harvey Norman, Macquarie Group and National Australia Bank offer the same characteristics.
The other strategy, Kucukalic says, is for investors who are "a bit more worried about the news flow".
Australian Trades » We’re the richest nation on earth, according to a Credit Suisse report