Here’s a word of advice I’ll endorse, three years late but better now than never, from the AFR:
The man on the ground for one of the world’s biggest funds management firms, T. Rowe Price, says the dramatic selloff in Australian currency and sharemarkets over the past five weeks means it is a good time to snap up Australian stocks.
“When the Australian dollar drops, then Aussie stocks start to look more attractive. Some people may feel queasy when both drop together, but I feel excited,” Randal Jenneke said.
As head of Australian equities, Sydney-based Mr Jenneke is responsible for managing a $120 million portfolio on behalf of local clients, as well as advising on the $US3 billion ($3.5 billion) that T. Rowe Price has invested in Australian equities on behalf of offshore investors. Globally, the firm has $851 billion under management.
…As the trends of the past three years reverse and the exchange rate continues to depreciate, Mr Jenneke tips the biggest winners will be those Australian companies that derive a large portion of their earnings offshore. Favourites include packaging supplier Amcorand glove and condom maker Ansell.
No banks or miners in sight.
