UBS equity strategy


UBS equity strategy 

David Cassidy, UBS Chief Strategist gives his insights on the Australian share market correction in September and early October.
This video forms part of UBS Neo, now included in AustralianSuper’s Member Direct option.  

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Important information

This video has been prepared by UBS Securities Australia Limited ABN 62 008 586 481 AFSL 231098 (UBS) and represent the views of UBS not AustralianSuper.  The information is general information and general advice only and has been prepared without taking into account any member's objectives, financial situation or needs. The information is current at the time of recording but may have dated by the time of viewing. The most up-to-date UBS Neo research is available in Member Direct.  Refer to the video and relevant research report for the relevant disclosures and disclaimers. You must be a registered member of the Member Direct investment option to access UBS Neo Research.  Eligibility criteria and fees and charges apply. Find out more.

Video transcript

We think market prospects from here are much improved from where we were about a month ago. Firstly the valuation of the Australian market looks a lot better now...
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We’ve seen the price earnings ratio of the market move back from 14.7 times expected earnings about a month ago to about 13.7. So that compares to a long-term average of 14.4, so valuations look better. And secondly I think the fall in the Australian dollar we’ve seen over the past month also lays the foundations for a better corporate earnings backdrop going forward.

I think we’ve seen an unusual combination of high-dividend yield stocks and cyclical stocks underperforming over the past month, which has been interesting. US dollar earners have done best on average but not all US dollar earners have done well, which is also interesting.

Well, in terms of some of the US dollar earners that haven’t done that well, we think stocks like Crown Limited and Incitec Pivot look interesting here. We also think the energy sector is oversold. And in the domestic cyclicals, we think it’s interesting that stocks like Boral and CSR underperformed. They’re beneficiaries of the strong housing construction cycle, so we’d be recommending those stocks at these levels.

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  • It would appear to me that some members Do not have the knowledge nor the time to digest and act upon all this share market info . Perhaps it would be more practical for some members to have access to some short term forcast of the general movement of the share markets, local and international. There must be some researchers in our USB that have this capability. I would appreciate your comment.

    Posted by David Noel 8 January 2015
  • Thanks for your feedback David. AustralianSuper doesn’t publish market forecasts but this type of information is available from UBS in our Member Direct option. See

    Posted by AustralianSuper 8 January 2015
  • Well he finds a lot of stuff 'interesting' but how does it help me invest?

    Posted by Mum and Dad 9 January 2015
  • Thanks for your comments, this is an example of the type of research available within the Member Direct investment option. More detailed info is available in the research report.

    Posted by AustralianSuper 9 January 2015

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