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What’s ideal US equities Exposure?

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Question asked 12/03/2022

What’s ideal US equities Exposure?

James, Still enjoying the trade updates & trade rationale. I have no international exposure. If I were looking to initiate some heavily sold off US stocks, which would you favour for the long term? Visa/Mastercard Microsoft/Apple Paypal Shopify Spotify Pinterest Also, what are the considerations to take account of in relation to current AUD USD exchange rates? If the AUD strengthens over time, would this lower the capital gain return of the stock price of the US stock? With thanks, Bernie

Answer

Hi Bernie,

Firstly we are bullish the $A and ASX over the S&P500 longer term hence. A rising $A versus the $US does detract from returns. We are longer term bullish the $A as we believe the 1st leg up in a commodities super cycle is maturing but longer term there’s far more to go.

However shorter-term MM believes US tech will bounce well, we would simply buy the quality end of town, similar to our International Portfolio i.e. the likes of Microsoft (MSFT US), Apple (AAPL US) and Alphabet (GOOGL US).

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US S&P500 Index

LAST UPDATED 11/03/2022 17:31

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