COVID
Forecasts
The below COVID NSW forecast ranges are striking.
The ASX will not weather such a path well, nor will the AUD, should we follow the median path.
Most of the companies we hold in our direct equity portfolio are not directly COVID “reopening” plays. TPG, RHC, GEM, VCX and DXS, and ABC would likely be effected, but in the case of VCX and DXS, we are under REITs in general (a sector that would likely struggle under such a scenario).
In the case of TPG, the mobile roaming / tourist related decline has already been “priced in” we’d suggest, and larger issues like the merger and 5G rollout are dominant to the investment thesis.
That leaves RHC, but in aggregate, our portfolio is quite underweight COVID normalisation plays, having sold out of quite a few of them over the past months (stocks like TCL, or CWN).
Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.
This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.
Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.