ASX rout opens door to selective buying

After a horror October so far, the Aussie sharemarket is the cheapest it’s been since 2015.  The benchmark ASX 200 index is trading on a 12-month forward price-to-earnings ratio of 14.7 after starting the month at 16, according to JP Morgan. Nathan Parkin of Ethical Partners Funds Management is similarly inclined to see more opportunities than risks from the sell-down.  The turmoil has “shaken people out of positions at the wrong price for them and at the right price for us” is how Parkin puts it.  It’s not often that you get a chance to top up your positions across your portfolio at a good price, but now is one such time, he says. Parkin is not as gloomy about the housing market as many, and sees great value in building materials firm CSR and has added to his position in recent days.