The share market’s capacity to rally in surprising places never ceases to surprise. As investors are spooked by unrelenting media doom and gloom, the smart money looks forward, buying undervalued stocks.
Consider the supermarket giants, Coles Group and Woolworths Group. Coles is up almost 20% from its opening price in November 2018, after Wesfarmers demerged the business. Woolworths has a one-year total return (including dividends) of 35%.
I nominated Coles as one of the top stocks for 2019 in The Switzer Report in January. Coles has rallied from about $12.50 to $14.84 since then.