What to buy in 2015

Financial journalist and commentator on 3AW and Sky Business
Print This Post A A A

Key points

  • A stronger US economy, and slower Chinese economy, point to ongoing strength in the US dollar.
  • Australian companies with large proportions of revenue coming from offshore will benefit. Think CSL, Resmed and Amcor.
  • Improving consumer sentiment and retail spending will be another theme and JB Hi-Fi, Super Retail and Dick Smith could profit.

It is a tough time for investors, with conflicting signals coming from the markets and much of the economic commentary as to the outlook for 2015. But put simply, the markets are not as bearish as much of the talk.

The twin themes of a slowing Chinese economy but a strengthening, domestically driven, US economy in 2015 – and a resurgent greenback reflecting this – both show up in a falling Australian dollar. It is highly likely that the Aussie dollar will have a 7 in front of it at some stage next year. Not only will the automatic stabiliser of a lower currency help the Australian economy, it will boost the earnings of the group of stocks exposed to the US dollar.

Also from this edition