Don’t be anchored by the ‘dinosaur seven’, growth is in Ex 20

Dion Hershan  |  Yarra Capital Management  |  21 February 2024  |  0.50 CE

The top 20 stocks comprise 63% of the ASX200, and the index is heavily skewed towards banks (20.9%) and iron ore miners (14.8%). Given the expected negative growth in the banking sector and the vulnerability of iron ore prices due to a weak demand outlook, Australian equity markets could well be anchored by the ‘dinosaur seven’. With inflation at a two-year low but still well above the RBA’s target rate of 2% to 3% and rate cuts still uncertain, the outlook for Australian equity markets continues to look volatile. Investors seeking diversification, r...

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