BHP, Fortescue, A2 Milk Favored, Macquarie WM's Lakos Says

The video discusses the performance of the Australian market, highlighting the potential for earnings growth despite current weaknesses compared to the US market. It identifies stocks with good earnings momentum and significant offshore revenue. The impact of trade deals on the Chinese and Australian economies is explored, with a focus on iron ore prices. The banking sector is analyzed, noting the valuation of the big four banks and their dividend yields. Finally, the outlook for the Aussie dollar is examined, considering interest rates and commodity prices.

What is a key factor contributing to the underperformance of certain stocks in the Aussie market?

• High domestic demand

• Low interest rates

• Strong earnings momentum

• Offshore revenue dependency

How might a phase one trade deal between China and Australia impact the market?

• Increase in domestic demand

• Decrease in iron ore prices

• Boost to the Chinese economy

• Reduction in infrastructure spending

What is the current valuation status of the big four banks in Australia?

• Cheapest since the GFC

• Overvalued compared to the market

• Average compared to the market

• Highest since the GFC

What is the expected range for the Aussie dollar as discussed in the video?

• 60 to 62 cents

• 63 to 65 cents

• 67 to 69 cents

• 70 to 72 cents

What is a potential benefit of investing in the big four banks despite their current challenges?

• High growth potential

• Stable dividend yields

• Low market volatility

• Strong international presence