Paul, we took your advice and sold Woolworths. What is the next buy for the income/growth portfolio? Are bank prices too high and mining stocks and mining related stocks in for a downgrade?
A: Dear Cliff,
Thanks for the question.
I am a little on the sidelines at the moment. I agree with Peter and see some value in the materials sector, mainly BHP. That said, they are not the ideal stock for an income portfolio and I would be careful to ensure that I don’t get overweight in the materials sector.
Really hard to see a lot of value – my inclination on a trade/replacement basis would probably be into the financials sector. While bank prices are high, I feel they offer on a relative basis marginally more value.
Regards,
Paul
