Skip to Content
scroll

Porfolio sector allocation

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

    The Latest Q&A

    Question asked

    Porfolio sector allocation

    Dear MM, Thanks for your excellent service. Interested in your thoughts. Is it time to bite the bullett and skew portfolios away from resources and into US stocks. If you were starting today with 100% cash, I'd be curious to know how you would allocate this to the various sectors, geographies, assuming that you were a long term investor (not a day trader) i.e. with a 6 month - 3 year - 5 year time horizon. 1. Geographic split Aust - % US - %? another way of asking this is if you had $100, how would you - yes I'd be interested in your views, not advice - split this $100 between your Active Growth portfolio (ASX based) and your International portfolio. 2. Within/across those geographies, then what would your % allocations from a sector perspective? Eg Resources/Materials Financials Tech Healthcare Other? 3. And, within the Resources sector, what would your exposure be to the various commodities: ie. gold, copper, iron ore, lithium etc (I'd be interested in the %'s you might allocate to each of these) Thanks... this is a big question I appreciate. Kind regards, Young

    Answer

    Hi Young, a reminder that MM is a general advice service, and we do not take into consideration any one person’s circumstances.

    We see two overarching aspects to your question which we define as:

    1. Asset allocation i.e. what asset classes to direct funds towards. The Core ETF Portfolio (here) is a good starting point to see our views around a balanced approach to asset allocation.
    2. What sectors we like here and now;

    The resources/value stocks feel like a coiled spring waiting for China to cut the cord. We are considering tweaking our portfolio into Christmas, but find it extremely hard to buy the high valuation names such as CBA and JBH, we would be inclined to be patient as opportunities will present themselves in 2025.

    On the commodity level we still like copper with iron ore and lithium starting to show value into recent weakness – we discussed IGO in Fridays report.

    We’re conscious this may be a disappointing answer to a wide-ranging question, but please appreciate, this is as specific as Market Matters gets. If you would like further advice around asset allocation and portfolio structuring, James and his team (via Shaw) can provide this to sophisticated investors; [email protected]

    chart
    image description
    ASX200 Materials v Tech Indexes
    image description

    Relevant suggested news and content from the site

    image description
    Overview
    image description
    A discussion with Geoff Wilson – Wilson Asset Management & James Gerrish – Market Matters
    image description
    Thursday 17th April – ASX +24pts, CGF, BHP, STO
    image description
    Major Movers Today
    image description
    Ausbiz: Research Lead Shawn Hickman discussing Copper
    image description
    Thursday 17th April – Dow -699pts, SPI down -26pts
    image description
    Stocks This Week – Source Bloomberg
    image description
    Wednesday 16th April – ASX +20pts, BOQ, RIO, ZIP
    image description
    Sectors This Week – Source Bloomberg
    image description
    Wednesday 16th April – Dow -155pts, SPI down -3pts
    Members only

    UNLOCK MARKET MATTERS NOW

    Take a free trial.

    No payment details required.

    Already a member? Click here to login
    Back to top