A stock 'pick' with rates in mind

Recently, AL Capital’s portfolio manager and head of research, Wim Steemers, made his appearance on Ausbiz TV to share insights from AL Capital. Wim has 23 years of experience in investment markets, on top of ten years in strategy consulting, where he helped multinational companies develop their global expansion strategies. His work spans 40 countries across all continents. Prior to joining AL Capital, Wim worked at global asset managers Colonial First State, Macquarie, AllianceBernstein as well as consultancy firm McKinsey.

Wim observes the US election landscape, noting markets are anticipating a Trump victory. However, he cautions against placing significant bets on such outcomes, reflecting on past election surprises. He suggests that betting markets might not represent the entire populace’s sentiment, urging caution.

Turning to interest rates, Wim shares insights on the Fed’s possible 25 basis point cut. He emphasises a long-term focus, suggesting finding stocks that benefit from potential lower future rates, rather than day-to-day market fluctuations. He advises looking for stocks less sensitive to interest rate changes, acknowledging prediction challenges.

Wim expresses interest in stocks like QBE (ASX: QBE), citing premium rate hikes and limited risk from events like US hurricanes. He remains cautious about China’s stimulus impacting miners, without foreseeing a major boom. Wim continues to explore sector-specific investments, considering current market dynamics.

Detailed video can be viewed from: https://ausbiz.com.au/media/a-stock-pick-with-rates-in-mind?videoId=38509