Portfolio Positioning: Equities cannot withstand the gravitational pull of bonds

Earlier in the year, we felt markets were far too optimistic towards rate cuts, i.e. US futures were pricing in three cuts before Christmas, the best possible outcome and even with the Feds rhetoric continually targeting three cuts, the risks of two remained high. Now, we believe things are swinging in the other direction. The market is now pricing in 1.69 cuts by Christmas; at MM, we’re rarely keen to fight the Fed, and we think two cuts remain a strong possibility, as they remain keen to cut at some stage, i.e. markets are now too pessimistic, ultimately good news for rate-sensitive stocks/sectors.

scroll

OPINION
ACTION

Latest Reports

Alerts 25/02/2026 09:58

Trade Alerts – Active Growth & Income Portfolios

We are making several changes to the growth & income portfolios

Morning report 25/02/2026 09:44

Portfolio Positioning: BHP and fellow miners keep dragging the ASX towards new all-time highs

The ASX200 closed flat on Tuesday despite less than 40% of the main board advancing. The story at the stock/sector level remained the same, with miners and banks offsetting losses across the broader market. BHP, Westpac and NAB added 24 points to the index. BHP, often referred to as the Big Australian, made new all-time highs on Tuesday, trading above $55 for the first time while it reported strongly this month, its starting to remind us of the feeding frenzy where ETF and momentum buyers drove CBA towards $200 in the first half of 2025:

Afternoon report 24/02/2026 17:19

The Match Out: Benign index move masks underlying volatility

Morning report 24/02/2026 09:43

What Matters Today: Three Companies that missed the mark, but has the market hit them too hard?

The ASX200 wobbled on Monday, as was largely expected, following Trump's tariff tantrum over the weekend, which created uncertainty around US trade policy. The local bourse slipped 0.6%, with over 70% of the main board retreating, but another strong session from the miners stemmed the losses, with heavyweight BHP again posting a fresh all-time high, closing up +19% year-to-date.

Afternoon report 23/02/2026 17:30

The Match Out: US Tariff hike shrugged off early, selling intensifies through the session

The ASX drifted lower as renewed uncertainty around US trade policy weighed on risk appetite, while gold extended its rally. Markets reacted to the US Supreme Court curbing President Trump’s tariff powers, prompting him to flag a temporary 15% blanket tariff on imports. The policy whiplash lifted safe havens, pushed the Aussie dollar towards US70.9c, and reignited selling pressure in technology.

Morning report 23/02/2026 09:25

Macro Monday: Don’t panic around Trumps 15% tariffs

On Friday, the US Supreme Court struck down most of Trump’s sweeping tariff policy under the International Emergency Economic Powers Act, ruling in a 6-3 vote that the law does not authorise the president to impose tariffs. Markets reacted positively to the ruling, with stocks rising, including Amazon, up more than 2%, alongside gains in retailers Home Depot and Five Below, amid hopes of relief from tariff-driven cost pressures and sticky inflation.

Weekend report 21/02/2026 10:11

Weekend Q&A: Markets hang around all-time highs as Trump’s tariffs are thrown into limbo

It was another bruising but ultimately constructive week for Australian equities, with the ASX200 finishing higher and holding close to all-time highs despite wild stock-level volatility as reporting season met the ongoing AI debate head-on. The index was again pulled in different directions under the surface, with sharp rotations between sectors and increasingly binary outcomes on earnings day. Strong results were rewarded aggressively, while any hint of disappointment was met with little mercy.

Afternoon report 20/02/2026 17:06

The Match Out: ASX holds steady near highs, QBE lifts on bumper result

The ASX slipped modestly today, though still managed a solid +1.84% gain over the week. A bounce from the low of the day was sustained as buyers stepped in through the session, despite tensions in the Middle East. Index moves will continue to hinge on single stock results, though the magnitude of moves likely fades given the heavyweight stocks have now come and gone this reporting season.

Morning report 20/02/2026 09:22

ETF Friday: Looking at Energy ETFs as Oil breaks above $US70/barrel

The ASX 200 posted a new intra-day high on Thursday before slipping into the close, ending a strong day up 79 points, or 0.9%. As reporting season gathers pace, yesterday’s session delivered another round of outsized moves from companies both beating and missing expectations.

Afternoon report 19/02/2026 17:28

The Match Out: ASX hits new all-time high amid a flurry of earnings reports

The ASX rallied today, hitting a new all-time high at 9118 (+3pts above the Oct high) before tapering off into the afternoon. Still, its longest winning streak in more than a month, corresponding with one of the busiest days on the reporting calendar. More beats than misses, and solid overall, but still a few landmines to navigate.