MQG
Hi James, Macquarie Group (MQG) has dropped about 15% in the last two weeks! Any clues as to why such a sharp fall? Cheers, Mick.
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Answer
Hi Mick,
Macquarie is a high beta stock with a beta of 1.2, which essentially means it moves in an exaggerated way to the broader ASX. We don’t think MQG’s decline, which was very obvious on Friday is due to a specific issue with them, when we look globally at JP Morgan, Goldman Sachs & the like, they too have experienced similar falls while the broader banking sector in Australia has also been weak. When markets fall, Macquarie tends to fall more and vice versa on the upside. While the bears are in charge, Macquarie will continue to struggle.
