Australian investors will be pleased to hear of an uber-bullish forecast from investment bank Macquarie Group Ltd (ASX: MQG) this week.
Nothing gets your average markets-facing Macquarie employee quite as excited as rising stock markets (bonuses aside) and The Australian Financial Review is reporting that the bank's analysts reckon the S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) could hit 10,000 points within 10 years.
Macquarie reportedly anticipating that much of the equity market's growth will be fueled by the legal requirement to save for retirement in Australia under the superannuation system that will mean a flood of money finding its way into equities over the years ahead.
According to the AFR the bank identifies education, tourism, services, and agribusiness as four sectors likely to do well over the next few decades and I will add in sectors exposed to baby boomer wealth fueled by existing superannuation balances and rising property prices.
In that regard I expect market-leading companies like annuities provider Challenger Ltd (ASX: CGF) could have a strong decade ahead, while others like private hospital operator Ramsay Health Care Limited (ASX: RHC) look well positioned to harness their share of baby boomer wealth.
Another widely-fancied potential beneficiary of the growth in the superannuation industry is SMSF software provider Class Ltd (ASX: CL1) – thanks to its market-leading product and outstanding growth rates. Shares in Class sell for $2.86 today and may crush the market's returns over the five-year period ahead.
