Ton-up Tipsters Still Say Go For The Gold
Sun Herald
Sunday September 29, 2002
THERE won't be a telegram from the Queen, but brokers Angus Geddes and Jason Mcintosh have clocked up the 100th edition of their internet share tipsheet Fat Prophets, claiming a 77 per cent success rate.
The 100th issue reveals they are still gung-ho on gold and predict the bear market on Wall Street will worsen.
But they add the Australian sharemarket is less vulnerable, thanks to a relatively cheap currency which will attract hot foreign money.
``We take comfort in the fact that domestic stocks are reasonably priced, and the underlying Australian economy is one of the fastest growing in the OECD," their report says.
Fat Prophets (www.fatprophets.com.au) selects stocks based on a mixture of analysis and charting trends.
It has warned against investing in so-called growth stocks those with high price/earnings ratios such as Brambles, Computershare, Cochlear, CSL, Billabong and Macquarie Bank.
It also warns investors to stay away from foreign markets.
``Now is a sensible time to confine investment to domestic markets with offshore volatility wreaking havoc on foreign stock markets, and a strengthening Australian dollar likely to erode any potential offshore gains."
Stocks to support include food manufacturing, packaging and retailing.
With oil prices rising because of threats of war with Iraq, Woodside Petroleum is also attractive, Fat Prophets says.
But gold is their favourite.
``We believe that an emerging bull market is unfolding in gold which could take the price substantially higher over the next few years."
© 2002 Sun Herald