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Is MM bullish the ASX200 Index?

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Question asked 16/09/2023

Is MM bullish the ASX200 Index?

Hi guys, sorry, another quick question re: ASX index. As always, appreciate the time to reply to questions and the easy to read reports. I seem to be firing off the questions every few weeks over the last few months. For a while now you've been saying your neutral towards the ASX200, however, on Friday morning in the report you say that you're bullish on materials, financials and tech. I haven't done my sums and actually worked it out, but I would think that if you are bullish in these sectors, and have also mentioned the elastic band on health, these would be quite a large chunk of the ASX200, which in theory would give a slightly bullish read through for the index wouldn't it? Thanks, Simon

Answer

Hi Simon,

The market has remained in the 7000-7500 trading range all year hence our ongoing neutral comment at the index level, but we have regularly added a couple of caveats along the lines of:

We do eventually expect the market to test its ~7600 all-time high, a move which will probably require investor confidence to return towards China.
We believe the best portfolio alpha (value) can be added through select stock/sector rotation until further notice.

Sorry for any confusion but you are correct, the combined ASX200 weighting of Materials & Financials is over 50% hence if both those sectors rally from here the markets likely to follow suit.

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ASX200 Index

LAST UPDATED 15/09/2023 11:48

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