Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi Guys, The great paradox of my portfolio is if you think that the Magnificent Seven and tec in general is going higher should we be keeping GQG ? and while I hold PNI if the market moves higher is it a good buy and those holding should top up? CNI and MGR is down is this a long-term hold or is it worth doubling down? Thanks, and regards, Glenn G
Hi Glenn,
We’ve bracketed the property stocks together as they’re dancing to the same tune:
Pinnacle Investment (ASX:PNI) – Last month we increased our exposure to PNI for our Emerging Companies Portfolio Here. Being a multi-affiliate asset management business, acting as a platform/holding company that partners with specialist boutique investment firms, providing distribution and infrastructure, and importantly taking a share of the revenue/profit its extremely well positioned to benefit from a rising market.
GQG Partners (ASX:GQG) – we are holding GQG on valuation grounds with some attractive yield thrown in. The stocks trading almost 25% below its 5-year average P/E leaving plenty of room for a strong recovery. However, if we had to pick the “Top 5” stocks in our portfolio for capital growth over the next few months it wouldn’t make the cut, whether you hold comes down to timeframes and the spread of risk desired.
It’s also important to hold some non-correlated assets in portfolios. Our Active Growth portfolio has a large weighting to tech at the moment, hence GQG provides a degree of diversification.
Centuria Capital Group (ASX:CNI) / Mirvac Group (MGR) – Local property stocks are highly correlated to the perceived future moves by the RBA through 2026/7. At the moment credit markets are factoring in at least two more hikes before Christmas. Our view is its two at most, with a good chance of less, but until the market agrees we see no reason to increase our sector exposure.
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