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What’s MM’s thoughts around “Sells into strength, Buys into weakness” moving forward?

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Question asked 30/07/2022

What’s MM’s thoughts around “Sells into strength, Buys into weakness” moving forward?

Hi James, Firstly, just wanted to express how much I value your product and service. I was an early adopter to MM and it is a fantastic education tool for me to make better decisions. Secondly, I'm keen to hear which holdings would be on MM's hit list across all portfolios to trim/sell towards the 6850-6900 mark, and which you would look to add/accumulate towards 6350-6400 if such a move on the ASX 200 plays out of the 6 months ? Thanks Scott

Answer

Hi Scott,

Thanks for the kind words, always much appreciated!

The plan started to unfold on Thursday as the market tested the 6900 level i.e. we trimmed our holdings down to 5% weightings in Aristocrat (ALL), Macquarie Group (MQG) and Goodman Group (GMG) in our Flagship Growth Portfolio taking our cash position to 7%. We may also trim our Xero Ltd (XRO) position into ongoing strength but a cash position of 7-9% affords us the flexibility we desired moving forward. We also tweaked our Emerging Companies Portfolio but maintained our market exposure in our Income Portfolio for obvious (income related) reasons.

In terms of what areas we may look to buy & / or increase if we do see a test of the 2022 lows obviously this will be news / price dependent but MM envisages it being a move towards higher risk / recovery names such as retail or fund mangers.

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