Three miners to love

CPI numbers came out at 6.1% a tad below analysts expectations. Max Cappetta, CEO and Senior Portfolio Manager at Redpoint Investment Management joined us to give us a breakdown at the sectors he is looking at. Before that, he gave us a breakdown of the first half of 2022. Max said PE multiples have derated in line with higher interest rates. He continued to say IT has performed worst YTD, while, energy, Utilities, Industrials, Staples & large cap Health have outperformed. Looking at earnings season, Max said he believes it will be quiet in terms of upgrades and downgrades. Turning to the sectors, and his first pick was the resources sector, liking energy stocks with near term earnings momentum, mentioning the likes of Woodside (WDS), New Hope Corporation Limited (NHC), Whitehaven Coal Ltd (WHC). Turning to the consumer discretionary sector, Max likes Woolworths (WOW) and rural exposures including Graincorp (GNC), and Elders (ELD).