The investment giant is betting on a comeback in real estate and retail stocks amid a more stable interest rate environment to help push the S&P/ASX 200 Index to eye-popping territory.
Already a subscriber?VanEck expects the Australian sharemarket to hit 8300 points by the end of the year as the asset manager looks to unloved real estate and retail stocks to make a comeback amid a brighter investment outlook.VanEck says Australia’s big four banks are “vulnerable to a correction”.VanEck portfolio manager Cameron McCormack said real estate investment trusts were primed for a comeback due to more stable interest rate settings and improving investor confidence around valuations.
VanEck’s forecast assumes one of the S&P/ASX 200’s biggest cohorts, the big four banks, are “vulnerable to a correction”, and investors should be wary of being overexposed.“The market seems to be pricing a dream scenario for the banks, despite the risks of a flare-up in mortgage stress in a prolonged higher interest rate environment,” he said.
Citi analyst Brendan Sproules reduced his recommendation on ANZ and Westpac, heaping the pressure on his existing “sell” ratings on Commonwealth Bank and National Australia Bank. Over the past six months, Wesfarmers has jumped more than 28 per cent to $65.63; JB Hi-Fi 39 per cent to $61.89, and Super Retail 23 per cent to $14.90.VanEck projects mid-caps to outperform the benchmark as smaller companies offer more earnings upside through market share expansion, and have historically outperformed in prolonged market recoveries.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX 200 LIVE: ASX to slip, Wall St edges lowerAustralian shares are set to follow New York with a modest opening loss. Citi sees ‘profit-taking’ risk for ASX 200. Bitcoin rallies. Follow updates here.
Read more »
ASX: global equity rally could push ASX 200 to reset recordHopes of rate cuts from major central banks in the first half of the year are continuing to buoy equity markets, making this week’s local inflation data pivotal for investor sentiment.
Read more »
ASX 200 LIVE: ASX to bounce as Middle East stand-off cools, China rates aheadASX to slip after Israel-Iran tensions fail to escalate. China loan rate decision expected later today. Oil and gold pare gains after Friday’s surge. Follow here for more.
Read more »
Shrinking ASX: Private equity’s hunger risks leaving ASX behind, RBA warnsBuyout funds’ Australian assets have grown 75 per cent in four years, but the ASX 200 has shrunk by roughly $6 billion this year.
Read more »
MNS ASX: The slow death of Magnis Energy shows plenty wrong with the ASXOver many years, the EV play has shown nothing but contempt for shareholders, most of them small investors. In its inaction, so too has the market operator.
Read more »
ASX: 200 Live: ASX to drop on US inflation; bond yields jumps, $A slumpsInvestors push back rate cut expectations to November, Wall Street falls. Gold, oil edge higher. $A slumps. NextDC eyes $1.3b capital raising. Avita cuts guidance. Follow here.
Read more »