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 added +4.2% last week while the ASX200 was up +2.68% (+4.43% when we include dividends) – another big week on the dividend front. MM continues to hold an elevated 11% cash position making us flexible and by definition in “buy mode” with the current weakness likely to see us active sooner rather than later. The portfolio’s top performers last week were IGO Ltd (IGO) +15.4%, HUB24 (HUB) +8.7% and Xero (XRO) +8%, the only stock finishing in the red was Ramsay Healthcare (RHC) which fell -11% after KKR walked away from its takeover bid – we will look at this in more detail today.
The index is clearly set for a bad start this morning following steep declines by US indices but subscribers must remain focused on at least the medium-term goal when we’re confronted by the scary news of the Dow tumbling almost 1300-points over morning coffee. Over the coming days the markets are going to find themselves 2nd guessing the Fed into next week’s rate decision which is likely to create ongoing volatility over the coming week (s) with the hawkish rhetoric likely to remain firm but this is good news for a cashed-up MM in “buy mode”:
- MM is looking to slowly start increasing our market exposure into the latest market downturn i.e. we remain bullish into Christmas / 2023.
The stocks on our Hitlist remain reasonably consistent although the entry levels have risen slightly higher as the internals of the market have improved, the top 6 today have evolved to the following:
- REA Group (REA), Super Retail Group (SUL), National Australia Bank (NAB), Sandfire Resources (SFR), GPT Group (GPT) and Megaport (MP1) – we allocated 3% into Seek (SEK) last week and now require lower levels to increase this holding.
NB Our buying will continue to be dictated by the underlying stocks themselves, as opposed to index / sector levels which we track as guide only.
No change on the macro front as US 10-year bonds slowly but surely edge towards their June 3.5% high, the NASDAQ falls towards its 2022 lows and the Japanese Yen makes 24-year lows the pieces of the MM roadmap continue to unfold as expected – we are still looking for a number of financial markets to bottom/top out over the coming weeks which should create a tailwind for equities as a whole.
