Hi Petunia,Dont fret too much. This was a predictable short term...

Hi Petunia,

Dont fret too much. This was a predictable short term pullback led by some profit taking and ramped up short trading.

I actually find it very reassuring that the share price has held up so well considered the above pressures.

Subject to no major cats or credit meltdowns, investors will see the growth potential in Qbe when comparing to other stocks.

The big banks look at best fully priced if not a tad expensive, the miners are facing lower commodity prices & discretionary retailers are facing tighter family budgets due to higher taxes and lower family payments courtesy of fed govt.

Qbe , on the other hand, has high exposure to Aust/NZ housing industry through its LMI and various business insurance products. This is the sector that the govt and RBA believe will motor our economy in the near term.

Obviously, having significant exposure to US, Latin America & Asia, will also provide Qbe with growth opportunities that other domestic orientated companies will not be able to offer.

In my opinion, this stock still has a fair way to go to reach fair value.