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
The Financial Services Council has appointed a new deputy chair for its board.
ASIC chair Joe Longo has told compliance professionals they need an “attitude of compliance” beyond written policies, how can AFSLs achieve this without alienating their advisers?
Peri and menopause training founder and TV journalist Shelly Horton has hit back at calls for businesses to introduce menopause leave.
Pendal has told investors it will start winding up its Enhanced Credit fund from December, its third fund closure this year.