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Cutting losses defines a portfolio’s performance as much as picking winners; hence, this morning, we revisited the 3 stocks in our Active Growth Portfolio that are in the worst shape on paper. Taking a loss is never fun, but it’s all part of investing and an area that many seem to struggle with. We’ve gotten better at it over the years and approach the decision with very little emotion, and we hope to pass that ability onto our readers. We run real money portfolio’s published on the Market Matters Website and members can see our recent sales at the bottom of each portfolio going back several years, although there are few we would rather not be reminded of!

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Latest Reports

Weekend report

Weekend Q&A: Volatility soars on uncertainty around valuations in the “AI Trade”

The ASX 200 ended the week down another -2.5% with only the defensive natured consumer staples sector managing to eke out a small gain. It was the local market's worst week since “Liberation Day” with the index closing at its lowest level since June, on a combination of worries around stretched valuations and the direction of interest rates. On Friday, the local bourse closed 7.7% below its all-time high posted in October when the prospect of lower rates was managing to offset lingering fears around frothy valuations.

Afternoon report

The Match Out: ASX hit again, WiseTech (WTC) bucks the trend after AGM

The ASX limped into the weekend, chalking up its fourth straight weekly loss. That’s a tough run by any measure, putting November’s losses at ~5% so far — the worst monthly showing since September 2022. Ongoing uncertainty around US interest rates after a slightly stronger-than-expected US labour report showed 119k jobs added vs. 50k expected, while risk off flows have knocked the likes of Bitcoin, now trading $US86k down from $US125k high.

The Match Out Market Matters 2
Morning report

ETF Friday: Five ETFs to lessen the dependence on the “AI Trade”

The ASX 200 surged over 100-points on Thursday, embracing the “risk on” thematic which cascaded through global markets after Nvidia beat expectations to reignite the “AI Trade”. It was the upbeat nature of the world's largest stock that got the tech sector excited, with Nvidia trading up ~5% in post market trade pushing NASDAQ Futures +1.5% following the result and bullish outlook:

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Afternoon report

The Match Out: Nvidia results underpin strong bounce back in the ASX

The ASX bounced from six-month lows yesterday, staging a strong move as investors piled back into stocks after Nvidia delivered blockbuster earnings that blew past expectations. The update reignited confidence in the AI thematic, helping the local market snap out of its recent slump - lifting nine of eleven sectors into the green. Unsurprisingly, tech was strong, supported by a rally in US futures, although good moves across the resources saw the material sector claim top stop – only just!

The Match Out Market Matters 2
Morning report

What Matters Today: Where do earnings meet valuations in the ASX tech sector?

The ASX 200 posted another 5-month low on Wednesday as the banks dragged the index down by 0.25%, offsetting further gains in the materials and energy sectors. Concerns over upcoming US jobs data and Nvidia’s earnings, now the world’s largest stock, cast a long shadow over an otherwise comparatively quiet Australian market, which saw less than 3% of the main board move in either direction by more than 5%.

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Afternoon report

The Match Out: ASX drifts lower ahead of key Nvidia earnings result

The local market spent the morning stabilising after yesterday’s selloff, with Nvidia’s earnings result tomorrow morning remaining in the focus. Strength across energy, gold and defensive names helped the market keep its head above water for most of the morning, until softness prevailed into the close as investors took risk off the table with a volatile session likely in store for tomorrow.

The Match Out Market Matters 2
Morning report

What Matters Today: Looking for new ideas amongst the financials after recent volatility

The ASX 200 managed to eke out a small gain on Monday after starting the session on the back foot. Buying crept in throughout the day, reversing an initial 0.5% drop to close marginally higher, helped by firm US futures. Tech and energy stocks led the gains through a relatively quiet session, which only saw 3% of the main board move by over 5%.

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