Global equities have been trading sideways for the last few years, albeit with ~15% swings on either side of the mean. However, as we’ve discussed previously, there will be plenty of winners & losers on the stock level, especially as bond yields experience their most rapid appreciation in our lifetime, e.g. year-to-date: ANZ Bank (ANZ) +6.6% but Bank of Queensland (BOQ) -19.3% and Cochlear (COH) +21.2% & CSL Ltd (CSL) -17.7%. Excuse the pun, but with the Melbourne Cup looming, it’s all about backing the right horse at this stage.
- We continue to believe portfolio performance will be all about stock/sector rotation until further notice.
Our Active Growth Portfolio has outperformed consistently over the last three years, although there’s always room for improvement with cutting positions, we’re not happy/comfortable being one area: “must do better,” as school reports so often say. Today, we have looked at three moves we are considering as market volatility edges higher – the VIX remains above 20% even after slipping last night.
