Global stock markets have clearly moved on from “Buy growth at any price” which in our opinion has led to a market which is now one of the most exciting in recent years for active investors i.e. as we’ve already witnessed over the last 3-months some obvious positions are often going to become undone. This brings us to OZL which MM holds in our Flagship Growth Portfolio, we remain bullish as we look for copper to push towards the $US500/lb area but we feel clouds are lurking on the horizon. The stock feels “heavy” close to the $30 area which was clear to see by its recent sharp dip under $24, even as copper remained firm.
The problem is all around positioning, the market is 80% net overweight late cyclicals i.e. banks, energy and resource stocks – to put things in perspective this is the largest overweight position since 2008 (GFC time). MM sees more upside from these sectors but the easy money has gone as their advance matures like a good bottle of red, we see ourselves lightening our cyclical positions over the coming weeks / months.
MM is bullish OZL short-term
Add To Hit List
