Investors dug into hole with resources: IOOF
There is a danger Australian investors have been dug into a hole because of the market focus on resource stocks over the past 10 years, according to IOOF's head of Australian equities Dan Farmer.
Addressing an adviser briefing in Sydney today, Farmer suggested the Australian resource boom had matured and that investors needed to look for the next big earnings growth sector.
In doing so he suggested one of those growth sectors would be the health care space.
Pointing to the dominance of the resources sector in investment terms, Farmer said 25 cents in every dollar was being invested in resources stocks.
"Perhaps we're digging a hole for ourselves. Perhaps we've become too reliant on resource stocks," he said.
Farmer said this seemed particularly to be the case when resource demand and Chinese growth were taken into account.
He said that moving forward, investors might need to think about changing portfolios dramatically.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
