Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

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Sunday, 12 January 2014

Healthcare stocks which have outperformed

In my first book, Get a Financial Grip, I noted that if there is one sector of the market which is guaranteed to grow in size with Australia's growing and ageing population, it's that of healthcare.

Look at Ramsay Healthcare (RHC) go over the past 5 years, for example:

Source: ASX

With a PE ratio of almost 30 which anticipates further growth it is now a very expensive stock.

It's also been a studious fightback by diversified group Sonic Healthcare (SHL) after some write-downs and a subsequent announcement of an earnings miss in 2009/2010.

SHL is also now trading at a higher PE ratio than it has been at 18.

Source: ASX

In fact, a fair number of healthcare stocks smashed the market in 2013.

Check out Fisher Paykel & Paykel Healthcare (FPH) over the past couple of years, for example.

FPH is now trading at a PE ratio of 23.

Source: ASX

These represented fairly high PE ratios. I'd be looking to be well diversified in the market, despite the market being anticipated to go up in 2014 by most forecasting houses.

Other healthcare and medical stocks which outperformed over the past 12 months included CSL and Resmed (RMD) which had a corker of a year.

Always take financial advice before making investments. I don't recommend specific stocks or financial products.