Stock Watch - Stock Picks — US Corporate Bond ETF and Quilter
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Ian Cruickshanks from SAIRR chose an unlisted US Corporate Bond ETF as his stock pick of the day and Mark du Toit from Oyster Catcher Investments chose Quilter Plc
Cruickshanks said: "I believe that interest rates are going to come down so you need some sort of gearing aimed towards that. I also think that the rand is going to remain under pressure indefinitely so therefore I'd look to investing in another market. I'd look at an ETF, trying to get an investment in corporate bonds, where I think there's an opportunity to go with them as they come down maybe from a 5%-6% to 2% or 3% there could be very good capital values."
du Toit said: "I'm picking Quilter tonight. There has been a lot of a noise today about the trade or possibly, the delay in the trade resolution between America and China but you've also got the UK election next week and I think that post the election (we hope that it goes the way of the Conservative Party and not the Labour Party) but I think if it goes to the conservative party it will be positive and then we will start to see resolution of Brexit shortly thereafter. So Quilter is the asset and advice management business that was spun out of Old Mutual and I think it's well positioned in that it has the second business tied advisor force in the UK. They sold their Life Assurance business and then returned three hundred million pounds to shareholders in either a special dividend or most likely share buybacks which I think will be a nice underpinning for the share price. I think the British Pound could strengthen in the in the medium term post the Brexit resolution, so I think the prospects are good."
Cruickshanks said: "I believe that interest rates are going to come down so you need some sort of gearing aimed towards that. I also think that the rand is going to remain under pressure indefinitely so therefore I'd look to investing in another market. I'd look at an ETF, trying to get an investment in corporate bonds, where I think there's an opportunity to go with them as they come down maybe from a 5%-6% to 2% or 3% there could be very good capital values."
du Toit said: "I'm picking Quilter tonight. There has been a lot of a noise today about the trade or possibly, the delay in the trade resolution between America and China but you've also got the UK election next week and I think that post the election (we hope that it goes the way of the Conservative Party and not the Labour Party) but I think if it goes to the conservative party it will be positive and then we will start to see resolution of Brexit shortly thereafter. So Quilter is the asset and advice management business that was spun out of Old Mutual and I think it's well positioned in that it has the second business tied advisor force in the UK. They sold their Life Assurance business and then returned three hundred million pounds to shareholders in either a special dividend or most likely share buybacks which I think will be a nice underpinning for the share price. I think the British Pound could strengthen in the in the medium term post the Brexit resolution, so I think the prospects are good."