Instreet’s pick of the crop for 2010
15 December 2009
It’s the time of year to start making predictions for 2010, but unlike Nostradamus, Instreet’s George Lucas hasn’t got catastrophe in mind.
The Sydney-based boutique fund manager reckons next year will be characteristed by its lack of surprises.
“Everyone is sitting on their seat waiting for a major event to happen that will cause the market to fall, but we expect the news to be quite dull in 2010,” Lucas says.
“We predict the ASX200 will trade-up to 5600 by December 2010, driven by the cyclical growth story which will continue into 2011.”
As for the Aussie dollar, Lucas predicts it will remain strong against a weaker USD supporting the Australian stock market. “Any improvement in the US economy will see an exponential increase in exports from Asia to the US, helping to keep a lid on the strength of the USD”, Lucas says.
And he doesn’t expect the cork to be removed from the inflation genie bottle.
While predicting a dull 2010, Lucas says it could prove to be a year of consolidation after a busy 2009 for Instreet.
“We successfully launched our new Link Series product, which created a new category in the retail space of which it is now market leader,” he says.
“We had net inflows of more than $140 million for the year and we have a sound strategy to continue to expand our business model.
“Our distribution team has increased to give better coverage while at the same time we expanded our product development area.
“We have managed a new business through very difficult market conditions, expanding our relationships with adviser networks and groups by provide products and services designed for them.”
“That’s where we’ve had our edge and will continue to build on that,” concluded Lucas.
