Over the last month, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fallen a tad over 3% as many of the companies that Australian investors hold near and dear have disappointed horribly.
8 Top Holdings, 8 Shocking Performances
Here are eight stocks that have hit the back pocket of most Australian investors:
Down 10% to 12%
BHP Billiton Limited (ASX: BHP)
Woolworths Limited (ASX: WOW)
Down 8% to 10%
Australia and New Zealand Banking Group (ASX: ANZ)
Woodside Petroleum Limited (ASX: WPL)
National Australia Bank Ltd. (ASX: NAB)
Down 6% to 8%
Telstra Corporation Ltd (ASX: TLS)
Medibank Private Ltd (ASX: MPL)
Rio Tinto Limited (ASX: RIO)
Now, some of these companies have gone ex-dividend in the period, however, no dividend payment is going to compensate the investor for a 10% fall in the share price!
New Top Stocks
Recognise the companies above? I believe, with a growing number of analysts and commentators, that Australian investors looking for outsized returns need to look outside the regular go-to stocks.
If recent data is to be believed, the banks and mining companies above are unlikely to meaningfully grow profits anytime soon. We're seeing the RBA do everything it can to cool the housing market, while the economies of emerging market countries aren't shooting the lights out and won't be propping up the iron ore and oil prices for some time.
Investors need to turn their attention to companies that utilise Australian brainpower and tap into growing markets. Consider that REA Group Ltd (ASX: REA), Ramsay Health Care Limited (ASX: RHC) and Carsales.Com Ltd (ASX: CAR) are all increasing their offshore exposure, particularly in Asia.
In the smaller-cap space, Blackmores Limited (ASX: BKL), Bellamy's Australia Ltd (ASX: BAL) and Vita Life Sciences Limited (ASX: VSC) are all growing their businesses by developing health products that are proving popular overseas. Their share prices have risen strongly, however their profits are also surging higher quarter after quarter.
