Matt Haupt and John Ayoub, portfolio managers of the listed investment company WAM Leaders (WLE), join the EL&C Baillieu podcast to discuss the outlook for the Australian equity market in 2021.
In a broad ranging discussion, Matt and John identify three key themes that could drive the market higher over the next 12 months:
• The financials sector, particularly the major banks, driven by a return to credit growth, improving bad debt performance and upside risk to dividends. National Australia Bank (NAB) is their key stock pick.
• The energy sector, driven by the global return-to-normal benefitting travel and industrial production. Santos (STO) is their key stock pick.
• Increasing M&A among Australia’s largest listed companies, driven by improving economic conditions and strong balance sheets. Wesfarmers (WES) and Sonic Healthcare (SHL) are two companies they expect to be active.
The conversation also includes insights on interest rates, pandemic beneficiaries such as Woolworths (WOW) and Coles (COL), and the outlook for discretionary retailers such as JB Hi-Fi (JBH) and Harvey Norman (HVN).
Tune in to the final EL&C Baillieu podcast of the year for a positive view on the economy and investment markets.