No doubt, global and domestic equity markets remain volatile. A nice relief rally on the back of Greece can being kicked down the road again, followed by another pullback driven by US quarterly earnings disappointment.
As I look around global markets for contrarian value, there are two sectors I think look good value and have bottomed. I hope you’re sitting down: China H shares and Australian banks.
In a world where value is hard to find and many, many stocks are priced for perfection, I think the deep correction in China H shares and Australian banks is offering a clear contrarian medium-term value opportunity now that the trading knife has stuck.