Retail property a better bet than retailers

Financial Journalist
Print This Post A A A

Contrarian investing is much easier in theory than practice. Spotting an oversold sector that can recover is only half the battle; getting the timing right separates great investors from the rest. Buying too early exposes portfolios to horrific losses.

Mining services is an example. The sector was on life support at the start of 2016 as investors feared further earnings downgrades and bankruptcies. Those who bought when everybody else rushed for the exits deserve every dollar of profit from the mining-services recovery.

A similar story is unfolding in retail. Persistent consumer gloom and fears about new competition from Amazon in Australia have smashed the sector. One retailer after another has downgraded earnings and many retail stocks have lost more than 40% in a year.

Take a free trial to continue reading

Already have an account? Login to continue reading.

By proceeding you understand and agree to the site's terms and conditions

Also from this edition