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 advanced +2.89% last week outperforming the market, our cash position remains at 2% after recent portfolio moves. The support largely came from a recovery in the growth stocks Xero (XRO) +7.7%, ResMed (RMD) +7.2%, HUB24 (HUB) +5% while Woodside Energy (WDS) -2.7% and CSL Ltd (CSL) -1.4% weighed on returns.
No change on the index level the ASX200 has continued to follow the MM roadmap with our short-term 6850-6900 target area relatively close at hand, although the next 24 hours is likely to add some spice to the mix. MM has flagged on a number of occasions what’s likely to come next for this portfolio:
- Assuming we test the 6850-6900 region migrate down the risk curve by selling 1 or 2 high beta stocks while probably increasing our cash position up towards 10%.
- Reduce our tech / growth exposure by either closing out positions & / or reducing some large holdings. i.e. we are currently overweight this end of town.
- We are also monitoring our positions in Macquarie Group (MQG), Newcrest Mining (NCM), ResMed (RMD) and CSL Ltd (CSL) with an eye on tweaking our position size slightly lower.
The last few weeks have seen some solid results from a number of the Australian retailers including JB Hi-Fi (JBH) and Myer (MYR) which poses the question that perhaps things aren’t as bad with the Australian consumer as many believe and are positioned for, however just when it was starting to feel safe to re-enter the space we received the bearish news from Walmart (WMT US) i.e. the world’s largest retailer.
- MM has held zero exposure to the Australian Retail Sector in our Flagship Growth Portfolio for over a year yet it has 8 companies in the ASX200 – so far so good but all things come to an end!
- The sector has bounced ~17% from its June low with our ideal entry into the sector if we make fresh lows this side of Christmas but with investing it’s rarely an ideal world.
Hence today we’ve followed up last week’s piece on JB Hi-Fi (JBH) as we consider firstly what’s our favourite stock in the sector and secondly should we look to establish part of a position into current weakness in case we are wrong and stocks have already found their low for 2022.
