4 stocks to buy on a correction

Financial Journalist
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As I write this column, the Australian sharemarket had fallen almost 5% in two trading days, before some much-needed mid-week respite.

A correction in US shares was long overdue. As the US economy strengthens, markets are factoring in higher wages growth, inflation and interest-rate rises. The Goldilocks scenario of “neither too hot nor too cold” is fading – the US economy looks hotter than expected.

Recent wages-growth data in the US and rising bond yields suggest the pullback has further to run. We might see further losses in the next few weeks, but I expect markets to recover the losses this half, albeit with higher volatility.

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