Broker backs supermarkets and miners as RBA prepares fifth rate rise
Stockbroker Morgans recommends supermarkets, gold miners, and overseas earners as shields against a slowing economy. The RBA prepares a fifth rate rise.
The Reserve Bank is on track to raise interest rates for a fifth time this year. The rate rise will happen on Melbourne Cup Day.
The cash rate will reach its highest level in 18 years. Stockbroker Morgans says households squeezed by higher borrowing costs should guide investors toward defensive stocks.
Supermarkets are winning as cost-conscious shoppers eat at home more and hunt for bargains. Woolworths shares have surged 39 per cent this year while the broader market fell 0.1 per cent.
Morgans also prefers miners, especially gold producers like Evolution Mining and Ramelius Resources. These companies grow earnings during inflation.
Companies earning most of their profits overseas offer protection from a weak domestic economy. Examples include ResMed and Aristocrat Leisure.
The broker warns that slower productivity and an ageing population will further pressure economic growth.
- 4.85 per cent
- New cash rate
- 39 per cent this year
- Woolworths share surge
- Down 0.1 per cent
- Broader market performance
- 18 years
- Highest rate in
Why it mattersMorgans backs defensive sectors during rising rates and slowing growth, showing which stocks may weather the economic downturn better than others.
AustraliaAustralian investors and superannuation members should consider tilting portfolios toward consumer staples, mining, and offshore-focused companies to weather the tightening cycle and potential economic slowdown.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
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