Luke Laretive of Seneca Financial Solutions shares insights on current market conditions and potential opportunities in the equity market, with a focus on the property sector. Despite ongoing negative rhetoric, Luke notes that the market remains resilient and continues to climb the “wall of worry”, He emphasises the value in bottomed earnings and identifies several undervalued stocks as investment opportunities, including companies in the building materials sector and financials that may experience growth in the near future.
Specifically, Luke points out the Australian Finance Group (AFG) as a business with bottomed earnings ready for growth. He also discusses the prospects of the real estate advertising firm REA Group (REA), concluding that it has a great business model, but its toughest times are still ahead. Lastly, Luke expresses enthusiasm for Dexus Property Group (DXS) as it offers a unique, slightly contrarian pick in the sector due to its tier-one office assets and strong dividends.
Watch the interview: Ausbiz – Three stocks that might be trading below ‘fair value’