There is a danger Australian investors have been dug into a hole because of the market focus on resource stocks over the past 10 years, according to IOOF's head of Australian equities Dan Farmer.
Addressing an adviser briefing in Sydney today, Farmer suggested the Australian resource boom had matured and that investors needed to look for the next big earnings growth sector.
In doing so he suggested one of those growth sectors would be the health care space.
Pointing to the dominance of the resources sector in investment terms, Farmer said 25 cents in every dollar was being invested in resources stocks.
"Perhaps we're digging a hole for ourselves. Perhaps we've become too reliant on resource stocks," he said.
Farmer said this seemed particularly to be the case when resource demand and Chinese growth were taken into account.
He said that moving forward, investors might need to think about changing portfolios dramatically.
