After mentioning ANZ and NAB yesterday it made sense today to look at MM’s other banking exposure in our Flagship Growth Portfolio i.e. MQG. A month ago we trimmed our MQG position from 7% to 5% in the $191 region, we are considering tweaking the exposure back up into further weakness but we are in no hurry – the banks are a great example of how sectors have already come in/out of vogue in 2023. Importantly we liked MQG’s strong Q3 report last month with its Commodities Division delivering at this stage of the economic cycle.
- We will consider taking our MQG position from 5% to 6% under $180.
MM still believes BHP will trade between $40 and $50 through 2023
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NB, We are not in a hurry to ramp up our banking exposure as they are likely to struggle if/when bond yields do roll over – our preferred macro scenario.
