The flagship Market Matters Portfolio provides an active approach to investing in ASX listed large cap stocks – Click here to view
The portfolio advanced +0.13% over the past week pretty much in-line with a flat market while for the month it gained +1.84%. On the stock level we enjoyed strong performances last week from Qantas (QAN), HUB24 (HUB) and Whitehaven Coal (WHC) while Altium (ALU), Bravura (BVS) and a2 Milk (A2M) where major drags – that’s the nuances of reporting season. With a relatively low 7% cash level subscribers should continue to expect any buying for this portfolio through September to be accompanied by selling i.e. a switch.
Firstly let’s consider our underlying core stance over the next 6-months as we exit reporting season:
- We are bullish the reopening and reflation plays with the Resources Sector our preferred place to remain overweight.
- We are neutral the banks at current levels but will consider increasing our exposure into weakness.
- We are bullish bond yields hence MM will continue to steer clear of interest rate sensitive stocks.
- We remain selectively bullish tech stocks.
Now some portfolio thoughts:
- Our positions in BHP Group (BHP) and Newcrest Mining (NCM) are higher than we would choose in today’s market.
- We like Orocobre (ORE) and Fortescue Metals (FMG) as alternatives in the Resources Sector.
- We’re not excited by our Bravura (BVS) position following its report and are considering alternatives, Appen (APX) would be one for the brave.
