Market Matters Q&A

Morningstar Association

Hi James,

Happy to see MM progress a focus on improvement.

I joined MM years ago because I was extremely frustrated with my then 5 years relationship with Morningstar for all the reasons that you state as improvements etc. I found them thoroughly our of touch with the markets, sure lots on analysis but with no thoughts on how the markets reacts and grinds away day to day ie WE LOST A LOT OF MONEY as they never ever reevaluated their large and confusing analytical data based recommendations approach that sunk to worthless without any honest, timely reviews.

I pray that MM doesn’t abandon your flair, experience and REAL TIME REACTIONS and process. In fact James I would like to hear from you personally that MM maintain the same ethos and principles in your business going forward, Please !

I have extensive executive experience in these matters and the idea of MM growth through outsourcing to the likes of Morningstar, is a poor strategic partnership in my real live view.

Regards Steve Kelly

Steve

The Next Wave in AI

Hi team, always enjoy your articles my question is it seems a new wave of AI investing has begun as investors shift their focus from the tech companies building artificial intelligence to traditional, everyday businesses using the technology to improve efficiency and profits. While the initial boom in tech infrastructure and chip manufacturing slows down due to high valuations, attention appears to be moving toward sectors like banking, healthcare, and manufacturing that turn AI tools into real financial gains. Do you subscribe to this view and if so which companies could benefit?. For the record I don’t believe the AI cycle is done but the capex spend is starting to wobble the market. Steve

Steve

Fiducian Group (ASX: FID)

Hi Guys, thanks for your comments on such a variety of matters. I have been a holder of FID for a few years and benefited from rising dividends now 6.4% and 100% franked, yet the share price has tanked a bit. Has it bottomed out and what is your overall assessment?

David

Unibail-Rodamco-Westfield (URW FP)

Thanks for your overall contribution to my investing.
QUESTION
I was a long term holder of Westfield. When the sale /transfer of shares was offered, I elected to retain a good number in UNIBAIL RODAMCO
My shares are now listed on Paris exchange. Please tell me what you can about Unibail recent and likely future performance
LEONARD LLOYD (LLOYDS OF WAHROONGA SUPER FUND)

Leonard

Equity Markets price movements

Dear Market Matters Team,

I am writing to get your insights on the current state of the equity markets, which have become exceptionally volatile. This extreme price action is no longer confined to traditionally illiquid penny stocks; we are now seeing it across the board, heavily impacting major blue chips.
The current environment feels reminiscent of the 1980s currency markets, which were often characterised by poor liquidity and less sophisticated trading dynamics.

This raises an important question: Is this happening because liquidity constraints and short sellers now have significantly more leverage, especially in a market where potentially investors fundamentally believe equities are overvalued and the future is uncertain?

We are currently seeing cases where even a minor miss on reporting expectations can wipe 10–15% (and more in a short time) off a stable blue-chip stock in a single session.

What is your team’s structural view on why we are seeing such violent reactions to earnings reports, and what specific strategies would you recommend to safely capitalise on these sharp moves?

Kind regards,

Michael

Michael

No more “Buy & Hold”

Hi Gents,
I started investing in 2009 and I believe that the investing landscape has changed dramatically since then. Looking back, there were many shares that I held for a good number of years for nice gains. But, I’m not as keen to do that any more. Some examples, not my stocks:
CSL – peaked above $300 and fell below $100.
RMD – back to where it was 5 years ago.
WTC – below what it was 5 years ago.
XRO – less than half what it was 5 years ago.
(I’ve only bought CSL, but that was back in 2009 for $31.30)
You know there are many more. Buy and hold just doesn’t cut it any more, but I don’t want to be trading all the time either.
What are the main sell signals you look for, the reliable ones?
Thank you.

David

Champion Iron Ltd

Good afternoon, Bought CIA some time ago and ever since it has been on a downward spiral. Do not believe its last financials reported well, and price of iron ore has had an impact, but what is your opinion of the stock moving forward? The stock price has continued to slide without any sign it has bottomed. Interested in your thoughts on the company and performance. Regards, Peter

Peter

CAR Group Ltd (ASX: CAR)

Hi James and Team
Can I have your current view on CAR Group.
The share price has fallen over the past year on concerns about what AI means for online marketplaces.
The CEO today pushed back on AI disruption fears saying that AI is an opportunity rather than a threat to its marketplaces.
“AI models are unlikely to bypass CAR Group, citing a direct audience of more than 52 million monthly users, live dealer inventory and two decades of proprietary sales and pricing data” Do you agree with this? Do you expect the market to re-rate CAR Group anytime soon?
regards
Debbie

Debbie

Life360 Inc (ASX: 360)

With the Q3 Update expected in early November, could you provide an opinion on Life 360 and its current share price?

Mark

Morningstar Data

Hi there James.

I am already subscribing to Morningstar. Do what extent will there be duplication. (I don’t have time to read all the emails I receive at present)

Many thanks

Graeme