Markets

All the highly speculative froth, and less-speculative-but-still-very-expensive secular growth stocks getting carted off a positive discount factor.

There’s a fair amount of nexus-between-unprofitable-health-tech-and-finance below.

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And a slightly odd grab bag of stocks for those positive on a day like today, with offshore dollar earners (that do well when the AUD goes down) and rate sensitives (+ve rates beta) making up most of the list, alongside some quality staples.

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Our direct equity portfolios are doing quite well today, relative to the benchmark, as a) we have a pretty low beta (~.90x market) b) we are long the rate sensitives c) we are defensively positioned with almost no exposure to tech and consumer discretionary.

Of that list we have Amcor, Suncorp, TPG, Brambles, ANZ, and had just sold Ramsay due to the takeover bid.

Anyway, days like today can feel scary or deeply unpleasant for clients, and the good news is that whilst we cannot predict the timing of days like today, we can position prudently ahead of time for them, and so both the multi-asset funds, and the direct equity portfolios (for which most of the above commentary applies) should hold in good stead.

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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.

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