The Market Matters Flagship Growth Portfolio provides an active approach to investing in ASX listed large cap stocks – Click here to view
The portfolio slipped -0.2% over the past week, a good performance through a week when the ASX200 fell more than-1% while cash sits at 6%. We enjoyed 4 of our holdings rallying by 5%, or more, while none fell by the same degree – CSR Ltd (CSR), OZ Minerals (OZL), Whitehaven Coal (WHC) and Santos (STO) with all of them not surprisingly residing in the Resources / Materials Sector.
We have 2 standout risks across this portfolio in both structure and overall market exposure:
- MM is basically fully committed to stocks with only a 6% cash position at the time of writing.
- MM has migrated this portfolio to be very overweight the resources names.
Earlier in the week after we purchased Alumina (AWC) we said it was time to sit back and see if our view is correct and at this stage we believe we’re on the money. The US Value Index, which reflects the performance of Banks & Resources in the US has been consolidating for a few months, just as it did during a similar period in 2020, the sideways action may have further to unfold but ultimately MM is looking for another strong leg higher into Christmas / 2022.
NB The Value Sector is largely comprised of the Banks and Materials / Resources names.
