Original article by David Rogers
The Australian – Page: 22 : 19-Jan-18
Analysis by Hasan Tevfik of Credit Suisse shows that stocks with the lowest volatility have traded at an average price-earnings premium of nearly 10 per cent over the last decade. In contrast, stocks with the highest volatility have traded on an average PE discount of nearly 20 per cent. Tevfik says investors should rebalance their portfolios in favour of higher-volatility cyclical stocks rather than so-called bond proxies. Stocks he favours include BHP Billiton, Whitehaven Coal, Qantas and Harvey Norman.
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, WHITEHAVEN COAL LIMITED – ASX WHC, QANTAS AIRWAYS LIMITED – ASX QAN, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BLUESCOPE STEEL LIMITED – ASX BSL, ORIGIN ENERGY LIMITED – ASX ORG, STOCKLAND – ASX SGP, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, STANDARD AND POOR’S 500 INDEX, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, STANDARD AND POOR’S ASX 200 INDEX