All things considered, it is quite impressive that stocks have held up given the persistence of inflation, and the consequent grinding up of rate expectations.

Now you can say that there’s poor breadth, that the equal weight S&P 500 hasn’t done well, that it is all AI related hype pumping up the Nasdaq and its constituents, and that’s fine, we say that too.

But it remains a fact that rates were touted as key drivers to pop the tech bubble, and here are rates busily going up a lot, while tech booms.

We’ve been fading that rally, using very strong returns across some of the active managers to lighten the exposure to Growth stocks, and in doing so, ups the defensives at the margin.

Overall, we are moderately defensively positioned, but mostly it is simply because cash, bonds + credit have very reasonable yields, and are very credible options, these days.

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.

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