Even by the end of October 2017 Australia was considered as of the worst-performing stock markets in the developed world this year, and by reaching 6000 points for continuous 2 days (Tuesday and Wednesday) it is all set to leave the financial crisis behind.
K2 Asset Management, whose fund has trounced the market, is betting financial and commodity companies will drive gains for equities in the coming weeks. While many countries saw their local markets recently hit fresh record highs, Australia’s benchmark S&P/ASX 200 Index is only just approaching the highest level since 2008. The thankfully the market has sustained its peak for more than 48 hours.
Experts say even-though it is too early to predict its long run , it is going to stay good , at-least for a week.
Along with K2, Eight Investments Partners and Credit Suisse Group AG see earnings continuing to recover amid broader global economic growth and an improving outlook for commodity prices.
“Looking forward, the capacity for Australian companies to generate profits is quite good,” said Melbourne-based David Poppenbeek, whose K2 Australian Fund has outperformed its benchmark by a factor of almost two since starting in 1999 and now has 35 percent of assets devoted to financial stocks. “J ..