What Australia’s great contrarian, Schroders’ Martin Conlon, is buying

Already a subscriber?Martin Conlon strides to the stage of the Mayfair Ballroom in Melbourne’s Grand Hyatt Hotel – and immediately opens his presentation with a pointed dig at Chanticleer.is recalling the recent prediction given at’s AI Summit by Adam Driussi, founder and chief executive of data company Quantium,Martin Conlon sees a regime change coming for the Australian market.

He admits he’s scared by the way Nvidia, Apple, Microsoft and other tech giants now dominate global market indices andAdvertisement This is not just an American problem. Conlon gives the local example of WiseTech Global, the global shipping and logistics giant thatBuying the stock at its current market capitalisation of $33 billion, and hoping to make a 10 per cent return on that investment in perpetuity, requires WiseTech to make a $3 billion operating profit which, even at a very generous margin of 50 per cent, requires revenue of about $6 billion.

“My 30-second view of what’s happened in the last 20 years is basically we spend most of it outsourcing manufacturing to China, which brought the prices of nearly all goods flat to down. We used that as a justification to cut interest rates, and we used those low interest rates to buy residential property – and then that led to a lot of debt.

“We think it’s a time to be pretty well diversified and have a lot of sensibly priced companies, rather than chasing the market darlings.”Conlon argues investors need to work a bit harder to find opportunities in this environment.

Miners, energy companies such as Origin and AGL, pallet supplier Brambles, rail groups and even telecommunications giants such as Telstra could be ways to play the switch back to investment that he believes the country will have to make in the coming years.

Source: Loan Digest (loandigest.net)

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Injury puts Liam Martin in doubt for Origin II, Dylan Edwards ’50/50′ to returnThe Panthers and Blues have suffered a blow with Liam Martin suffering a foot injury that will leave him racing the clock for game two.
Source: smh - 🏆 6. / 80 Read more »

Richmond star Dustin Martin rested ahead of milestone match at MCG against HawthornDustin Martin will miss Thursday night's clash against the Crows, but the injury-hit Tigers could welcome back a powerful midfield duo.
Source: abcnews - 🏆 5. / 83 Read more »

Dustin Martin to miss Richmond’s clash with Adelaide due to illness7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Source: 7NewsSydney - 🏆 16. / 63 Read more »

Moto GP: Bagnaia leads Ducati one-two in Italy to turn up heat on MartínFrancesco Bagnaia won the Italian GP at Mugello while his Ducati teammate Enea Bastianini overtook championship leader Jorge Martín to finish second
Source: GuardianAus - 🏆 1. / 98 Read more »

To work out what to do in Brisbane, Martin visited seven cities in four countriesMartin Garred won a fellowship to investigate how south-east Queensland can accommodate more people. He found a different way of thinking about modern suburbia.
Source: brisbanetimes - 🏆 13. / 67 Read more »

Martin Freeman is back in the best, most intense police drama in yearsCreated and written by former police officer Tony Schumacher, The Responder returns for another compelling – if anxiety-inducing – season.
Source: smh - 🏆 6. / 80 Read more »