Ep 352: Banks and miners: Where to from here for the Australian stock market?
Investopoly
Intro
Stuart introduces Investopoly and frames the episode's focus on the ASX, concentration risk and how a few large stocks drove recent returns.
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In this episode, Stuart dives into the heart of the Australian share market, breaking down how a small group of stocks—the big banks and major miners—are dominating the ASX200. In 2024, just three banks (CBA, Westpac, NAB) delivered more than half the index’s gains, while BHP and Rio Tinto dragged returns down.
Stuart questions whether this concentration risk is sustainable. With CBA trading at historically high valuations and 14 out of 15 brokers rating it a 'sell', it may be time for investors to take profits. Meanwhile, Macquarie Bank stands out with solid long-term growth and attractive valuation.
On the mining side, copper is booming, offering hope for BHP and Rio despite iron ore headwinds and China uncertainty.
Stuart also explores alternative ETF strategies like equal-weight and ex-top-20 indices, which reduce exposure to overpriced large caps and give broader diversification.
If you’re concerned about valuation risk, market concentration, and how to position your portfolio for the future, this episode is essential listening. Stuart offers practical, data-backed insights to help you rethink how you're investing in the ASX.
Do you have a question? Email: questions@investopoly.com.au or for a faster response, post a comment on the episode's video over on YouTube: https://www.youtube.com/@investopolypodcast/podcasts
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