- The key themes of US dollar leverage, major banks, non-bank dividend growth and inbound tourism remain.
- Macquarie Group, along with Westfield Corporation (WFD), Servcorp (SRV), CSL (CSL), Resmed (RMD), Brambles (BXB), Platinum Asset Management (PTM), and Magellan Financial Group (MFG), are leveraged to the US dollar.
- Macquarie Group’s earnings per share (EPS) is only set to grow, which means it deserves a new 12-month target of $70.
In terms of Australian equity strategy, I am attempting to position for globally-driven yield compression meeting domestically-driven yield compression as the Reserve Bank (RBA) cuts the cash rate. I have a feeling we are all going to be surprised by how much money attempts to move down a reasonable narrow street and that is why my entire focus this year has been on dividend growth stocks (and currency-translated winners).