The MM International Equities fell -2.03% last week with cash sitting at 9%. Our tech exposures provided the biggest weight, with both Tencent (700 HK) & JD.com (JD US) falling sharply, while Amazon (AMZN US) +10.9% and Deer & Co (DE US) +8.36% offset most of the decline, while a weaker AUD added +1.75%. If we are correct, the recent decline in tech will reverse very soon.
The MM International Equities Portfolio fell 5.5% last week with a negative 1.2% contribution from currency swings – while weakness was again across growth names, industrial company Deere & Co (DE US) was also sold off on supply chain concerns losing -11.15%, while our position in Barrick Gold (GOLD US) +8.74% performed strongly as investors sought safe havens.
Deere & Co manufacture and distribute a range of well-known agricultural, construction and forestry equipment. It’s a defensive style industrial business that trade on a Est. P/E on 20x. We are looking for DE to make fresh all-time highs into Christmas with technical projections of ~25% higher, obviously this is a call with the trend which increases the chances of success.
Agriculture, mining & construction equipment manufacturer
Deere & Company (DE US) manufactures and distributes a range of agricultural, construction, forestry, and commercial and consumer equipment. The Company supplies replacement parts for its own products and for those of other manufacturers. Deere also provides product and parts financing services. Deere and Company extends its services and products worldwide.