Portfolio positioning – some observations

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Question asked 30/10/2021

Portfolio positioning – some observations

I am a small self-managed investor, apart from cxl (still my biggest holding even after recent sales] I hold usual blue chips MQR, WES, CSL, STO etc no banks, sold iron stocks recently except FEX bought cheaply keeping for dividends and higher quality iron believe several sectors will recover quickly. I also like well managed coys with Australian expertise who have expanded to US areas I like: paper packaging (use increased greatly in pandemic) – AMC, PPG & PGH Building Materials RWC, REH, BKW, CSR & New Vehicle Sales (waiting list for new cars & used cars selling well without discounting shipping may be only minor problem but little from China) APE & PWR. Any thoughts or comments – Morrie (new member)

Answer

Hi Morrie,

Thanks for coming on board. A large encompassing question and while we do not provide personal advice at Market Matters, I have included some general comments around how we see the investing landscape at the moment which may provide some food for thought:

We prefer more resources as we currently hold in our Flagship Growth Portfolio – we think the energy transition that is taking place will provide a huge tailwind for specific commodities such as Copper, Nickel, Lithium – simply, the task to build renewables will be huge and could well be the catalyst for a commodity price ‘super cycle’. BHP comes to mind at todays depressed prices as a diversified play here.
Banks currently have tailwinds on a number of fronts and while that is not always the case, they are big leveraged things and for now they have a growing economy and too much capital on their books which mean returns still look good here for the next 12 months.
MM prefers value stocks over growth into 2022 but we don’t let that preclude us from the entire IT & Healthcare Sector, we bought ResMed (RMD) last week.

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ANZ Bank (ANZ)

LAST UPDATED 30/10/2021 08:31

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