Growth expectations for the FY20 ASX200 earnings have eroded from around 6% to only 2%.
Ex-resources, the PE valuation for the ASX200 now stands at 19.5x versus the 10-year average of 14.5%.
Low bond yields and modest levels of global growth continue to support defensive names. Capital management remains an important factor in underpinning stocks, as share buybacks help to drive average EPS growth.
Our current ASX top 20 holdings include:-