It's been a bumpy ride for Australian share market investors in 2015, but those who held on for the journey could be well rewarded in 2016.
As reported by The Australian Financial Review, Credit Suisse thinks the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) will finally hit the 6000-point mark by December 2016. That's almost 15% above its current level of 5223 points.
While Credit Suisse believes investors are currently pricing in a "considerable period of decline" in dividends per share, according to the AFR, it thinks that view is too bearish and that dividends per share should expand modestly even during a period of subdued growth.
That's certainly encouraging for investors in companies like Telstra Corporation Ltd (ASX: TLS) and Commonwealth Bank of Australia (ASX: CBA). Both of these companies have come under heavy selling pressure in recent months but are typically owned by investors looking for safe and reliable dividends.
Instead of the typical blue chip companies however, Credit Suisse has named companies like Macquarie Group Ltd (ASX: MQG), Aristocrat Leisure Limited (ASX: ALL) and Carsales.Com Ltd (ASX: CAR) as those that will do well in 2016. It thinks Macquarie will do well thanks to its good track record of acquiring businesses; Carsales from its recent acquisitions; and Aristocrat Leisure from its expansion into the United States.
Personally, I think Carsales.Com is the best buy from those three businesses. The shares are trading at a very reasonable price while the company is also building a wide moat as more individuals make the carsales.com.au website the go-to platform for buying and selling their vehicles.
Some of the other companies I think could do quite well in 2016 include REA Group Limited (ASX: REA) – the owner and operator of the popular real estate portal, realestate.com.au – and SEEK Limited (ASX: SEK), which is another online classifieds business focused on employment and education.
Indeed, with the ASX 200 hovering well below its high levels from earlier this year, I think now could be an excellent time to begin buying shares in some of Australia's best companies.
