Investment Watch is a quarterly publication offering insights into equity and economic strategy. This edition explores expected interest rate trends, their impact on asset allocation, and highlights key Australian sectors and tactical opportunities.

Investment Watch is a quarterly publication produced by Morgans that delves into key insights for equity and economic strategy.

This publication covers

Economics - 'A comparative outlook on the Fed and RBA'
Asset Allocation
- 'Countering uncertainty'
Equity Strategy
- 'Broadening our portfolio exposure'
Banks
- 'Price strength compresses potential returns'
Industrials
- 'Wild swings'
Resources and Energy
- 'Sentiment turning'
Technology
- 'Buy quality when opportunities arise'
Consumer Discretionary
- 'Encouraging medium-term signs'
Telco
- 'Defensive attributes remain attractive'
Infrastructure - 'Attractive, but with limited opportunities'
Property
- 'An improving cycle'
Recent Intiations

As we approach Q4, we maintain our positive view on investment markets, grounded in the expectation of slowing but still positive global growth. The shift in market dynamics is driven by the resumption of US Fed rate cuts and the continued acceleration of tech innovation and productivity gains. We think these factors will mitigate the impact of ongoing economic challenges and geopolitical volatility. This quarter, we map the outlook for interest rates and how this shapes our asset allocation decisions. We also provide an outlook for the key sectors of the Australian market and where we see the best tactical opportunities


Morgans clients receive exclusive insights such as access to our latest Investment Watch publication. Contact us today to begin your journey with Morgans.

      
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July 22, 2025
10
July
2024
2024-07-10
min read
Jul 10, 2024
Investment Watch Winter 2024 outlook
Andrew Tang
Andrew Tang
Equity Strategist
Understand winter 2024 market trends and opportunities with Morgans' strategic investment insights.

Investment Watch is a quarterly publication produced by Morgans that delves into key insights for equity and economic strategy. This latest publication will cover;

  • Asset Allocation – not the time to play defence
  • Economic Strategy – averting a world recession
  • Equity Strategy – attention turns to August
  • Resources & Energy – domestic gas coming to the boil
  • Banks – befuddling
  • Updated Morgans Best Ideas

Morgans clients receive exclusive insights such as access to our latest Investment Watch publication. Download the preview now.

      
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Preview

We think the investment landscape remains favourable. The US economic fundamentals are strong with no significant downside risks to growth in the near-term. European leading indicators suggest a turning point is near and China’s cyclical recovery is still gaining momentum after bottoming earlier in the year.

Meanwhile, the Australian economy continues to defy expectations of a sharper slowdown. In our view, this is not the time to play defence and continue to expect growth assets such as equities and property to do well. This quarter, we look at tactical opportunities in private credit, global equities and across the Australian equity market (resources, agriculture, travel and technology).

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Economics and markets
Asset Management
October 15, 2025
4
July
2024
2024-07-04
min read
Jul 04, 2024
Signs a relative may need help
Sophie Doyle
Sophie Doyle
Retirement & Aged Care Specialist
With hectic schedules juggling children, work, and shuttling kids to various activities, it's easy to feel disconnected from our friends and family, especially with everyone spread out. Occasionally, when we do get together after a while, we might notice significant changes in someone we care about.

With hectic schedules juggling children, work, and shuttling kids to various activities, it's easy to feel disconnected from our friends and family, especially with everyone spread out. Occasionally, when we do get together after a while, we might notice significant changes in someone we care about.

Family gatherings like Father’s Day and other celebrations offer us a chance to pause and reconnect with those in our lives. It's during these moments that we might notice someone struggling more than usual.

Signs of aging can vary from obvious to subtle. Here are some things to keep an eye out for that may indicate someone needs extra support:

  • Missed appointments
  • Appliances left on
  • Untidy or unclean house
  • Unexplained dents in the car
  • Empty fridge or changes in eating habits
  • Changes in personal hygiene
  • Forgetting to take medications
  • Neglected house and garden
  • Loss of interest in hobbies or activities
  • Mood swings or behaviour changes\

What should you do next?

Consider holding a family meeting if you observe some of these signs. This is an opportunity to discuss and decide together how best to support your loved one.

Planning ahead allows older relatives to access support smoothly and maintain their independence with dignity. Addressing the issue of aging and care needs now rather than later ensures everyone is prepared and empowered.

We understand this is a sensitive topic, and emotions can play a significant role in decision-making. An impartial facilitator can guide your family through these discussions, helping you make informed choices confidently.

If you're ready to start this important conversation, please call Sophie at 02 4325 0884. Let us assist you in creating a plan that supports the well-being and future needs of your loved ones.


Sophie Doyle (AR#000470612) is a Retirement and Aged Care Specialist at Morgans Financial Limited (Morgans AFSL 235410 / ABN49 010 669 726); with a passion for assisting families make informed financial decisions, as they navigate their way through retirement and aged care.

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January 13, 2025
3
July
2024
2024-07-03
min read
Jul 03, 2024
Morgans Best Ideas: July 2024
Andrew Tang
Andrew Tang
Equity Strategist
Unlock growth opportunities with Morgans' top stock picks for July 2024, backed by expert analysis and market trends.

As interest rates normalise, earnings quality, market positioning and balance sheet strength will play an important role in distinguishing companies from their peers. We think stocks will continue to diverge in performance at the market and sector level, and investors need to take a more active approach than usual to manage portfolios.

Additions: This month we add Elders.

July best ideas

Elders (ELD)

Small cap | Food/Ag

ELD is one of Australia’s leading agribusinesses. It has an iconic brand, 185 years of history and a national distribution network throughout Australia. With the outlook for FY25 looking more positive and many growth projects in place to drive strong earnings growth over the next few years, ELD is a key pick for us. It is also trading on undemanding multiples and offers an attractive dividend yield.

Technology One (TNE)

Small cap | Technology

TNE is an Enterprise Resource Planning (aka Accounting) company. It’s one of the highest quality companies on the ASX with an impressive ROE, nearly $200m of net cash and a 30-year history of growing its earnings by ~15% and its dividend ~10% per annum. As a result of its impeccable track record TNE trades on high PE. With earnings growth looking likely to accelerate towards 20% pa, we think TNE’s trading multiple is likely to expand from here.

ALS Limited

Small cap | Industrials

ALQ is the dominant global leader in geochemistry testing (>50% market share), which is highly cash generative and has little chance of being competed away. Looking forward, ALQ looks poised to benefit from margin recovery in Life Sciences, as well as a cyclical volume recovery in Commodities (exploration). Timing around the latter is less certain, though our analysis suggests this may not be too far away (3-12 months). All the while, gold and copper prices - the key lead indicators for exploration - are gathering pace.

Clearview Wealth

Small cap | Financial Services

CVW is a challenger brand in the Australian retail life insurance market (market size = ~A$10bn of in-force premiums). CVW sees its key points of differentiation as its: 1) reliable/trusted brand; 2) operational excellence (in product development, underwriting and claims management); and 3) diversified distributing network. CVW's significant multiyear Business Transformation Program has, in our view, shown clear signs of driving improved growth and profitability in recent years. We expect further benefits to flow from this program in the near term, and we see CVW's FY26 key business targets as achievable. With a robust balance sheet, and with our expectations for ~21% EPS CAGR over the next three years, we see CVW's current ~11x FY25F PE multiple as undemanding.

GUD Holdings

Large cap | Consumer Discretionary

GUD is a high-quality business with an entrenched market position in its core operations and deep growth opportunities in new markets. We view GUD’s investment case as compelling, a robust earnings base of predominantly non-discretionary products, structural industry tailwinds supporting organic growth and ongoing accretive M&A optionality. We view the ~12x multiple as undemanding given the resilient earnings and long-duration growth outlook for the business ahead.

Stanmore Resources

Small cap | Metals & Mining

SMR’s assets offer long-life cashflow leverage at solid margins to the resilient outlook for steelmaking coal prices. We’re strong believers that physical coal markets will see future cycles of “super-pricing” well above consensus expectations, supporting further periods of elevated cash flows and shareholder returns. We like SMR’s ability to pay sustainable dividends and its inventory of organic growth options into the medium term, with meaningful synergies, and which look under-recognised by the market. We see SMR as the default ASX-listed producer for pure met coal exposure. We maintain an Add and see compelling value with SMR trading at less than 0.8x P/NPV.


Morgans clients receive full access of the Best Ideas, including our large, mid and small-cap key stock picks.

      
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Research
February 3, 2025
1
July
2024
2024-07-01
min read
Jul 01, 2024
The Month Ahead | July 2024
Alexander Mees
Alexander Mees
Head of Research
There are many reasons to invest in equities. Historically, they have offered higher capital returns than many other asset classes. Furthermore, they provide liquidity and diversification and allow investors to participate in the growth of high performing businesses and sectors.

There are many reasons to invest in equities. Historically, they have offered higher capital returns than many other asset classes. Furthermore, they provide liquidity and diversification and allow investors to participate in the growth of high performing businesses and sectors. Not to be overlooked, however, is their capacity to provide an income stream through regular dividends. In the Month Ahead for July, we highlight a selection of Australian equities that offer superior forecast dividend yields and may be suitable investments for those seeking income.

Happy New Financial Year!

Female inspector talking to male land development manager with tablet on construction site.

BHP Group (BHP)

BHP Group (ASX: BHP) is the largest diversified mining company in the world. BHP has extensive iron ore, copper, nickel and coal operations, and will soon add potash to its portfolio once its massive Jansen project comes online in late 2026. Besides nickel, which has proven volatile, the rest of BHP’s basket of market exposures share the similar characteristic of typically boasting bumper margins throughout the cycle. Over the last decade BHP has shifted its corporate strategy toward streamlining its business, protecting its balance sheet, slowing its pace of investment and maximising shareholder returns. Despite an impressive shareholder performance over recent years, BHP’s dividend yield has remained above market.

      
BHP coverage report
      

Coal vessel assisting stevedoring barge tug.

Dalrymple Bay Infrastructure (DBI)

Dalrymple Bay Infrastructure (ASX: DBI). DBI owns a fully contracted coal export terminal in central Qld. It has strong revenue and cost risk mitigants, CPI-linked base revenues boosted by incremental revenues from commissioned sustaining capex projects, very high EBITDA margins, and an investment grade credit profile. Investors comfortable with the coal-related exposure also benefit from the ESG discount imputed into the stock price.

      
DBI coverage report
      

Male and female wearing hard hats, safety glasses, and high-vis jackets.

Ventia Services Group (VNT)

Ventia Services Group (ASX: VNT) delivers essential services predominantly to government (c.75% of revenue), with an average contract tenure of c.5-7 years and direct inflation passthrough (95% of revenue) in most contracts. The industry grows at 6-7% pa, with VNT growing 7-10% through industry growth and contract expansion, whilst margins should remain stable. The stock continues to deliver a strong dividend yield, which we expect to continue growing at mid-single digits, whilst trading on an undemanding low double-digit PER.

      
VNT coverage report
      

Parked cars with close up of car bonnets.

Eagers Automotive (APE)

Eagers Automotive Limited (ASX: APE) is the leading automotive retail group in Australia and New Zealand, operating for over 100 years and representing a diverse portfolio of OEM (original equipment manufacturer) brands. While current industry dynamics in the auto sector (margin pressure; cost of living impacts) are expected to persist in the near-term, we view the scale operators (such as APE) as best placed to navigate this challenging dynamic. Longer-term, we are positive on APE’s various strategic initiatives and expect it can continue to scale; and sustain a structurally higher return on sales through the cycle.

      
APE research report
      

Underside of tree

GQG Partners (GQG)

GQG Partners (ASX: GQG) is global asset management boutique, managing ~US$150bn in funds across four primary equity strategies. We like GQG given its highly effective distribution, scalable strategies, and strong long-term investment performance. We view the earnings tailwind from strong funds under management growth (a combination of investment performance and net fund inflows) will continue and we think GQG will continue to re-rate along with this to a higher earnings multiple in time.

      
GQG research report
      

Aerial view of shopping complex and carpark.

HomeCo Daily Needs REIT (HDN)

HomeCo Daily Needs REIT (ASX: HDN) has a +$4.5bn real estate portfolio focused on daily needs retail (Large Format Retail; Neighbourhood; and Health Services) across +50 properties with the top five tenants being Woolworths, Coles, JB Hi-Fi, Bunnings and Spotlight. Most of leases are fixed. The portfolio has resilient cashflows, with the majority of tenants being national. Sites are in strategic locations with strong population growth. HDN offers an attractive distribution yield, with a +$600m development pipeline providing further growth.

      
HDN research report
      

Scientist computing, analysing and visualising complex data set on computer.

IPH Limited (IPH)

IPH Limited (ASX: IPH) is a prominent IP services group with market leading shares in Australia, Singapore and Canada. A defensive business, IPH has strong cash flow generation (with high conversion to EBITDA) and a long-track record of paying dividends to shareholders. We like IPH and consider the return to organic growth (albeit subdued) as a key near-term catalyst for the group. Longer-term, we expect IPH to continue to prosecute its consolidation and network expansion strategy offshore.

      
IPH research report
      

People walking outside Suncorp office.

Suncorp (SUN)

Suncorp (ASX: SUN) is well positioned to benefit from continued strong price increases going through the home and motor insurance market in Australia, we expect these price increases to be supportive of SUN’s margins expanding further over the next couple of years. Additionally SUN’s recent divestment of its bank was done at an excellent price and will allow the company to focus completely on its strongest business, general insurance, where it is a market leader.  Finally, post the bank sale, SUN now has >A$4bn of excess capital to return to shareholders, which will occur most likely via the way of a share consolidation and a small special dividend.

      
SUN research report
      

Male looking over a lake standing next to fishing rods.

Super Retail Group (SUL)

Super Retail Group (ASX: SUL) is a large discretionary retailer comprising four well-known brands which span several categories, including: Supercheap Auto; rebel Sport; Boating, Camping and Fishing (BCF), and Macpac. We like SUL given its market leading scale (>740 stores), deep data capabilities, strong loyalty base and diversified portfolio of brands. SUL has a very strong net cash balance sheet, and we expect it is positioned for further capital management initiatives in the near-term (i.e. potential special dividends).

      
SUL research report
      

Two females in hard hats and safety shirts with an oil rig in the background.

Woodside Energy (WDS)

Woodside Energy (ASX: WDS) is the largest ASX-listed oil and gas producer, and in the top 10 globally. While its share price has come under pressure, Woodside’s fundamentals have benefited from resilient oil/LNG prices, steady group production, progress on delivering its key growth projects, a robust level of profitability, and clear focus on its dividend profile. Woodside’s dividend payout ratio has averaged 80% of earnings for the last +5 years, which is impressive given the last 2 years have been a capex-heavy phase as its progressed construction of the Scarborough, Pluto Train 2, and Sangomar projects. With gearing remaining low and cash flow set to grow post the current investment phase, we see Woodside as likely to remain an attractive yield play.

      
WDS research report
      

Morgans clients receive exclusive insights such as access to the latest stock and sector coverage featured in the Month Ahead. Contact us today to begin your journey with Morgans.

      
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Research
Review Morgans' top stock picks and actionable insights for February 28, 2023, in a volatile market.

Morgans’ Your Wealth publication is our half yearly scrutiny into current affairs for wealth management. Our latest Issue 27 is out now.

This latest publication will cover understanding the benefits of a CarePlus annuity for aged care, the proposed Div296 tax, averting a world recession, super and tax next financial year and expectations on how illiquid assets in SMSFs are valued.

Download your copy today to receive the latest insights.

      
Download Now
      

An introduction to the benefits of Challenger CarePlus

Challenger CarePlus offers attractive fixed monthly payments for the lifetime of those requiring aged care, and returns 100% of the invested amount to beneficiaries or the estate upon death. It is suitable for individuals receiving or planning to receive Government-subsidised aged care services. CarePlus combines two products: CarePlus Annuity, providing guaranteed lifetime income with withdrawal and death benefits, and CarePlus Insurance, which ensures the death benefit equals 100% of the initial investment. This provides financial security and estate planning certainty, with lump sums typically paid quickly and tax-free. Investing in CarePlus can also increase Age Pension and reduce aged care costs by lowering assessable assets and income.

Morgans has reviewed a number of these innovative products, the details of which are summarised in the latest publication of Your Wealth.

Find out more
Wealth Management
February 3, 2025
12
June
2024
2024-06-12
min read
Jun 12, 2024
Morgans Best Ideas: June 2024
Andrew Tang
Andrew Tang
Equity Strategist
Explore Morgans' best stock picks for June 2024, highlighting growth opportunities and expert insights. This month we add Technology One, ALS Limited, ClearView Wealth, GUD Holdings and Stanmore Resources.

Reviewing our coverage of residential developers, real estate credit providers and building materials businesses, the consistent theme is that Australia is on the cusp of a significant building boom, with record immigration levels and population growth exacerbating an already chronic housing undersupply issue. This month we add several names with leverage to this theme.

Additions: This month we add Technology One, ALS Limited, ClearView Wealth, GUD Holdings and Stanmore Resources.

Removals: This month we remove Tyro Payments and Objective Corp.

June best ideas

Technology One (TNE)

Small cap | Technology

TNE is an Enterprise Resource Planning (aka Accounting) company. It’s one of the highest quality companies on the ASX with an impressive ROE, nearly $200m of net cash and a 30-year history of growing its earnings by ~15% and its dividend ~10% per annum. As a result of its impeccable track record TNE trades on high PE. With earnings growth looking likely to accelerate towards 20% pa, we think TNE’s trading multiple is likely to expand from here.

ALS Limited

Small cap | Industrials

ALQ is the dominant global leader in geochemistry testing (>50% market share), which is highly cash generative and has little chance of being competed away. Looking forward, ALQ looks poised to benefit from margin recovery in Life Sciences, as well as a cyclical volume recovery in Commodities (exploration). Timing around the latter is less certain, though our analysis suggests this may not be too far away (3-12 months). All the while, gold and copper prices - the key lead indicators for exploration - are gathering pace.

Clearview Wealth

Small cap | Financial Services

CVW is a challenger brand in the Australian retail life insurance market (market size = ~A$10bn of in-force premiums). CVW sees its key points of differentiation as its: 1) reliable/trusted brand; 2) operational excellence (in product development, underwriting and claims management); and 3) diversified distributing network. CVW's significant multiyear Business Transformation Program has, in our view, shown clear signs of driving improved growth and profitability in recent years. We expect further benefits to flow from this program in the near term, and we see CVW's FY26 key business targets as achievable. With a robust balance sheet, and with our expectations for ~21% EPS CAGR over the next three years, we see CVW's current ~11x FY25F PE multiple as undemanding.

GUD Holdings

Large cap | Consumer Discretionary

GUD is a high-quality business with an entrenched market position in its core operations and deep growth opportunities in new markets. We view GUD’s investment case as compelling, a robust earnings base of predominantly non-discretionary products, structural industry tailwinds supporting organic growth and ongoing accretive M&A optionality. We view the ~12x multiple as undemanding given the resilient earnings and long-duration growth outlook for the business ahead.

Stanmore Resources

Small cap | Metals & Mining

SMR’s assets offer long-life cashflow leverage at solid margins to the resilient outlook for steelmaking coal prices. We’re strong believers that physical coal markets will see future cycles of “super-pricing” well above consensus expectations, supporting further periods of elevated cash flows and shareholder returns. We like SMR’s ability to pay sustainable dividends and its inventory of organic growth options into the medium term, with meaningful synergies, and which look under-recognised by the market. We see SMR as the default ASX-listed producer for pure met coal exposure. We maintain an Add and see compelling value with SMR trading at less than 0.8x P/NPV.


Morgans clients receive full access of the Best Ideas, including our large, mid and small-cap key stock picks.

      
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Research
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