If forced to trim my holdings, I would lighten up my positions in B: Property shares first, closely followed by A: Tech stocks. I would also increase my exposure to D: Bank stocks.
When interest rates tick higher, the real estate sector gets hit by a double whammy of structural pain:
1: The capital value of commercial property portfolio falls.
2: The big debt service obligations spike instantly, eating into dividends.
Tech stocks: High tech names like WiseTech makes it a target for profit taking.
I would rotate into Australian bank stocks. My top pick is $COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ . It is the largest Australian bank with huge deposit base & net interest margin expansion.
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- EvanHolt·08-28 17:22Banks are the cleaner rotate here. For CBA, the deposit base and dividend consistency matter more than the macro nerves lolLikeReport
- zuma·08-29 07:42thxLikeReport