In her review, Julia discusses:
- 2018 growth positioning (0:28)
- ASX 200 vs. global performance (1:28)
- Earnings season consensus expectations (2:44)
- Stocks with high franking balances (4:02)
- Mining space review (4:38)
- Media, Internet & tech stock recommendations (7:02)
This year is all about understanding the current bull market with growth expected to outperform value and yield in the later part of this cycle.
With global equities still outperforming Australia and with the Australian dollar expected to fall in 2018, investors should look at overseas exposure, through ETFs for instance.
In January, the ASX200 finished down compared with a very strong performance from the US stock market. Top performers include Altium, A2 Milk and Flight Centre whilst Retail Food, Australian Pharmaceutical Industries and Fairfax were on the downside.
In terms of consensus expectations for the upcoming earnings season, the market is expecting to see earnings growth of 7% (a step back from FY 2017 at 12%), with resources doing the heavy lifting.
When looking at capital returns, companies with large franking balances like BHP Billiton, Woolworths, CBA, Westpac and TPG offer an increased likelihood of special dividends.
In the mining space, Shaw looks at metals & mining stocks whilst Deutsche Bank reviews mining services companies.
The latest wine export data from Asia has been positive for Treasury Wine Estates in terms of volumes and margins with a Buy recommendation for the stock.
Morgan Stanley reviews its stock recommendations in the media, internet and tech sector ahead of the reporting season.