FMG / IO Outlook and News, page-455

To be in ASX 50 has a lot of benifit, most new investors will be recommend to start with investing in ASX 50 companies. There is also Index fund that only buy ASX 50 companies.

We are now entering a "higher" interest era where Fed will start to increase rate over the next few years. Yield will be increasing important to investors, high yield high growth company will be the winner but there aren‘t many around. FMG is currently yield more than 10% but is holding back by prospect of "low" IO price. I think for FMG‘s SP to grow , the key is not higher IO price, but a stable IO price, where demand and supply in equilibrium, if every banks say IO will be minimum US$60, then FMG will be valued at that price. Now we have price targets from US$45 to US$80, investors don‘t like uncertainty.

The other option is to diversify. More than one income stream will derisk and hence attract new investors.

DYOR.

Frank.