Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

Equity Bottom-Up

<ul><li>Over the past 18 months, Evidente has recommended that Australian focussed investors have an overweight bet in discretionary retailers, challenging the conventional view that the consumer is being weighed down by record levels of indebtedness and historically low wages growth.  This post provides an update on the performance of discretionary retailers and re-visits whether the fundamentals for the consumer and sector have changed.  </li><li>Evidente continues to recommend an overweight bet in the interest sensitive discretionary retailers.  The RBA has little choice but to keep interest rates low for an extended period to ensure that consumption supports activity at a time when animal spirits in the corporate sector remain dormant. </li><li>When using an alternative measure of indebtedness, Australia's consumer does not appear to be stretched.  In a climate when many of the blue chips in the ASX200 are ex-growth, Evidente believes that discretionary retailers offer strong growth prospects based on the expectation of continued strong growth in discretionary spending patterns.</li></ul>

Over the past 18 months, Evidente has recommended that Australian focussed investors have an overweight bet in discretionary retailers, challenging the conventional view that the consumer is being weighed down by record levels of indebtedness and historically low wages growth.  This post provides an update on the performance of discretionary retailers and re-visits whether the fundamentals for the consumer and sector have changed.  Evidente continues to recommend an overweight bet in the interest sensitive discretionary retailers.  The RBA has little choice but to keep interest rates low for an extended period to ensure that consumption supports activity at a time when animal spirits in the corporate sector remain dormant. When using an alternative measure of indebtedness, Australia's consumer does not appear to be stretched.  In a climate when many of the blue chips in the ASX200 are ex-growth, Evidente believes that discretionary retailers offer strong growth prospects based on the expectation of continued strong growth in discretionary spending patterns.

Australian Discretionary Retailers Defy Record Low Wage Growth - Retain Overweight

JB Hi-Fi Ltd

Australian Discretionary Retailers Defy Record Low Wage Growth - Retain Overweight