The Market Matters Flagship Growth Portfolio provides an active approach to investing in ASX listed large cap stocks – Click here to view
This MM portfolio added +4.26% last week compared to the index which only gained +1.29%, we enjoyed strong performances from Crown Resorts (CWN), OZ Minerals (OZL), Independence Group (IGO), Xero (XRO), a2 Milk (A2M) and HUB24 (HUB) while IAG Insurance (IAG) was the only major drag across our holdings.
As I alluded to previously this portfolio is largely structured in line with our outlook hence we don’t anticipate any major changes short-term, but planning is more than half of investing. A couple of thoughts as we slowly approach November:
- Buy 1 “aggressive” : we can see some decent recovery in struggling tech stocks Appen (APX) and Nuix (NXL) but taking into our account our preference for value stocks at this stage of the cycle we’re likely to switch from one of our existing IT stocks as opposed to simply buy.
- Buy 2 “defensive” : assuming we are correct and equities rally led by the Resources Sector we will be looking to increase our underweight healthcare exposure into Christmas / 2022.
- Sell : we are still considering taking profit on our holdings in IGO Ltd (IGO) & / or OZ Minerals (OZL) around 8-10% higher, levels which are approaching rapidly.
As we touched on earlier some of the beaten up names are catching our attention as we wake up with only 66-days until Christmas e.g. a2 Milk (A2M), Zip (Z1P) that we own plus Appen (APX) and Nuix (NXL) which rallied strongly yesterday albeit from a low base. A few times over recent months we thought both of these stocks were looking interesting only for them continue their descent, however minimum bounces in the 25-30% region now feel look a strong possibility.
