Latest Skaffold research shows advisers looking further afield than traditional ‘safe havens’
7 April 2014; Stock research application house, Skaffold, has said that the long-standing faith in stalwart shares may at last be on the wane with advisers. According to analysis of the latest user data, financial advisers are no longer focusing mainly on traditional mining and banking stocks and are instead looking at service industries.
The research behavior of more than 100 advisers has been analysed over the past 11 months. In April 2013, banks and resources formed the top seven out of the top ten researched stocks. In March 2014, services formed the top four stocks and five of the top ten. Just one financial stock (ANZ) and one energy stock (Titan Energy Services) were included in the top ten most researched shares.
General Manager of Skaffold, Chris Batchelor, said Australian investors have relied upon these industries for growth. However, this change in behavior with advisers signals that Australian investors are looking further afield, reflecting an increased level of sophistication.
“Banks and miners have been the core of Australians share portfolios for many years. However, with many analysts now saying the mining boom is over and that banking growth is likely to be flat, it’s pleasing to see that advisers are getting more diversified in their stock research.
Highlights of the research include:
• 46% of stocks evaluated are in the Services sector
• 20% in the Technology sector
• 12% in healthcare
• 10% of views were CBA and ANZ
Mr Batchelor said none of the top 20 researched stocks by advisors were in the Basic Materials (resources) sector, whereas eleven months earlier Resources and Oil and Gas made up 20% of the top 20 most viewed stocks, with BHP the number one viewed stock by a considerable margin.
There were less changes evident among the advisers looking at international shares. In the US market Apple, which was previously the most viewed stock by Australian advisers on the US market dropped one place number two and Microsoft suffered a similar fate dropping one place from second most viewed to third most viewed. Resmed, the seep apnea specialist founded by Australian Peter Farrell was the most viewed US stock but technology stocks remain the largest represented sector in the US top 20.
Mr Batchelor said usage of Skaffold by advisers was also on the rise, with a 20% growth in adviser use.
Skaffold is a state-of-the-art online stock research application. It interprets key financials and forecasts into image-rich visuals. The application is automated and updated daily using information sourced from top-tier financial institutions.
Skaffold was designed to save time on research and simplify share market investing. Concise detailed information about companies, their history and future potential is more critical than ever. Skaffold is designed to provide key financials and valuations that put a company into perspective.
Skaffold’s patent-pending stock research includes companies listed in Australia, Asia, Europe and North America. It was created using academic research, testing the parameters of successful stock picking and reinventing what is delivered to you as a world first research tool for all investors. Skaffold is suitable for all types of investors, individual DIY investors, Self Managed Super Funds (SMSF’s) as well as professional investors and advisers.