The Market Matters Flagship Growth Portfolio provides an active approach to investing in ASX listed large cap stocks – Click here to view
The MM Flagship Growth Portfolio slipped -2.37% last week while our cash position remained at a small 1%. The portfolio enjoyed gains by Woodside Energy (WDS) +10.2%, BHP Group (BHP) +3.8% and TPG Telecom (TPG) +3.5% but unfortunately these advances were more than offset by weakness across the growth and battery metals names such as Xero (XRO) -10.2%, IGO Ltd (IGO) -6.5% and Goodman Group (GMG) -5.4%.
We remain fully invested looking for strength over the coming weeks/months to migrate down the risk curve and although the RBA put a spanner in the works yesterday US stocks continue to follow the path we expect which should ultimately flow through to the local market, to a greater or lesser degree. We are in a fascinating and undoubtedly challenging time for investors whose portfolios could be looking good if they held only miners and banks or awful if they are overweight the previously loved growth/tech names. We have witnessed an aggressive P/E (valuation) contraction across many sectors of the market as yields surge higher but we must remember to look through the windscreen as opposed to in the rear view mirror.
- Subscribers must remember that successful investing is a long game with alpha/value added by holding companies who grow earnings and profitability i.e. pullbacks are an opportunity!
We still believe Australian tech/growth names can follow the “bounce” unfolding in the US and while it’s looking likely to be muted in comparison it should still provide an opportunity to tweak portfolios into the 2nd half of 2022 – remember we are in a period of strong stock/sector rotation and what’s “hot” today could easily go cold in the coming months and vice versa.
At the moment although we never like to see a negative month for any of our portfolios/positions it is inevitable and at the moment none of our holdings is in an area where we want to take profit or “a get me out” situation hence today we have revisited another stock we are considering when we next tweak this portfolio.
