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Christina has been trading options in both the US and Australian markets since 2004. She specializes in income strategies which aims to generate consistent income from a stock portfolios in all market conditions.
My blog:
Low Risk Income Strategies
My book:
A Low Risk Income Strategy for All Economic conditions
  • Why Go To The US Market For Non-mining Stocks 0 comments
    Jan 29, 2013 1:19 AM | about stocks: GSK, CMXHF

    2012 was the year for chasing yield. As the RBA reduced interest rates, investors have been pulling their money out of the banks and piling into non-mining stocks that pay high dividends. Australian stocks such as CBA, WES and TLS are currently at multi-year highs, and trading at PE ratios of 15 or higher which is no longer in value territory.

    Can you find better value in the US markets? I believe so. For example, compare healthcare stock GlaxoSmithKline (NYSE:GSK) is trading at a PE ratio of 14 with CSL Ltd which is trading at a PE ratio of 29. GSK has a yield of 5.5% whereas CSL has a yield of 1.7%. If I am looking for exposure in the healthcare sector, I would choose GSK over CSL.

    Disclosure: I am long GSK.

    Stocks: GSK, CMXHF
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