Last week was a strong one for global equity markets and it was particularly pleasing to see some slight local out performance with the ASX 200 adding 3.01% to settle just shy of 7000. The broad S&P 500 ended the week up 2.71% while the technology stocks pushed the Nasdaq 3.12% higher. European stocks were also strong, the UK based FTSE 100 also adding 3.01% ahead of lock downs being eased this week.
Last week wrapped up Q1 of 2021 with the local market adding 3% for the 3 months, not a great effort given the backdrop of US markets which were up closer to 8%. We continued to see the broad trading range play out on the S&P/ASX 200 roughly between 6500 & 6900. When a market trades in a consolidation range for a number of months, the longer it stays there the more significant the eventual breakout is when it happens, sort of like a spring getting compressed until the pressure is released and bang, it propels itself in one direction or another.
Today's Q&A note focuses largely on stocks that are underwater that MM holds across portfolios. Looking after / addressing the losers is very important when managing portfolios.
Last week again felt like tough going for the ASX200 as we slipped ~1% over the 5-days with some rotation back from value to growth stocks evident under the hood. Over the last few weeks the local market has failed to embrace the push to fresh all-time highs by most US indices leaving us neutral to negative over the coming weeks with another test of 6500 for the local index looking a strong possibility as the Banks and Resources Sectors surrender some of the 2021 gains i.e. now only 3% lower.
The ASX200 had a quiet 2ndweek of February finally closing marginally lower as the local reporting season took its toll on a couple of names plus a strong Australian Dollar ($A) continued to pressure companies with significant overseas earnings.
The ASX200 has just enjoyed its best week in almost a year as February kicked off with a bang advancing +3.5% with the heavyweight Financials leading from the front in 2021 e.g. CBA is now up 25% in just 3-months as it heads into its half-year result on Wednesday. At MM we believe that 2021 /22 is going to provide some of best investing opportunities in history for the informed and open-minded investor.
The ASX200 has just endued its worst week since October finally closing down almost 3%, we’ve mentioned a few times this month that our “Gut Feel” has been the next ~5% move for stocks would be down, although we remain bullish, things now appear to be following our 2021 roadmap – on an index level we will be keen buyers around the 6500 level.
The ASX200 keeps climbing the wall of worry, the 6700 magnet is threatening to pass its mantle onto the new 6800 handle and on Friday we closed less than 6% below 2020’s all-time high. The rate of ascent has diminished as the buyer’s appetite for different stocks / sectors rotates almost daily while the underlying index sets its sights on 7000, but it appears in no hurry to reach the next major psychological level. Already in 2021 while the index has ground out a ~3% gain we’ve seen 27 stocks rally by over 8% and 15 stocks fall by the same degree with some interesting names on both sides of the respective ledger:
The ASX200 had a very quiet 2nd week of December finally closing up just +0.1% after posting fresh 10-month highs on Wednesday. Although the market has rallied strongly for an impressive six consecutive weeks it feels a little tired, it’s amazing how often the much-publicised seasonality influences are almost self-fulfilling - “fund managers make sheep look like independent thinkers”, a gem of a saying from Joe Bo who sits on our institutional desk at work and has a strong arsenal of one liners. We wouldn’t be surprised to see the local index correct a few percent next week, perhaps on lessening optimism around the COVID vaccines, but MM remains bullish and will consider increasing risk into any pullback – at least this side of Christmas. The “Santa Claus Rally” theoretically should start sometime next week and while 2020 has most definitely not been a normal year its already getting close to now or never for this seasonal bullish phenomenon.
Last week wrapped up Q1 of 2021 with the local market adding 3% for the 3 months, not a great effort given the backdrop of US markets which were up closer to 8%. We continued to see the broad trading range play out on the S&P/ASX 200 roughly between 6500 & 6900. When a market trades in a consolidation range for a number of months, the longer it stays there the more significant the eventual breakout is when it happens, sort of like a spring getting compressed until the pressure is released and bang, it propels itself in one direction or another.
Today's Q&A note focuses largely on stocks that are underwater that MM holds across portfolios. Looking after / addressing the losers is very important when managing portfolios.
Last week again felt like tough going for the ASX200 as we slipped ~1% over the 5-days with some rotation back from value to growth stocks evident under the hood. Over the last few weeks the local market has failed to embrace the push to fresh all-time highs by most US indices leaving us neutral to negative over the coming weeks with another test of 6500 for the local index looking a strong possibility as the Banks and Resources Sectors surrender some of the 2021 gains i.e. now only 3% lower.
The ASX200 had a quiet 2ndweek of February finally closing marginally lower as the local reporting season took its toll on a couple of names plus a strong Australian Dollar ($A) continued to pressure companies with significant overseas earnings.
The ASX200 has just enjoyed its best week in almost a year as February kicked off with a bang advancing +3.5% with the heavyweight Financials leading from the front in 2021 e.g. CBA is now up 25% in just 3-months as it heads into its half-year result on Wednesday. At MM we believe that 2021 /22 is going to provide some of best investing opportunities in history for the informed and open-minded investor.
The ASX200 has just endued its worst week since October finally closing down almost 3%, we’ve mentioned a few times this month that our “Gut Feel” has been the next ~5% move for stocks would be down, although we remain bullish, things now appear to be following our 2021 roadmap – on an index level we will be keen buyers around the 6500 level.
The ASX200 keeps climbing the wall of worry, the 6700 magnet is threatening to pass its mantle onto the new 6800 handle and on Friday we closed less than 6% below 2020’s all-time high. The rate of ascent has diminished as the buyer’s appetite for different stocks / sectors rotates almost daily while the underlying index sets its sights on 7000, but it appears in no hurry to reach the next major psychological level. Already in 2021 while the index has ground out a ~3% gain we’ve seen 27 stocks rally by over 8% and 15 stocks fall by the same degree with some interesting names on both sides of the respective ledger:
The ASX200 had a very quiet 2nd week of December finally closing up just +0.1% after posting fresh 10-month highs on Wednesday. Although the market has rallied strongly for an impressive six consecutive weeks it feels a little tired, it’s amazing how often the much-publicised seasonality influences are almost self-fulfilling - “fund managers make sheep look like independent thinkers”, a gem of a saying from Joe Bo who sits on our institutional desk at work and has a strong arsenal of one liners. We wouldn’t be surprised to see the local index correct a few percent next week, perhaps on lessening optimism around the COVID vaccines, but MM remains bullish and will consider increasing risk into any pullback – at least this side of Christmas. The “Santa Claus Rally” theoretically should start sometime next week and while 2020 has most definitely not been a normal year its already getting close to now or never for this seasonal bullish phenomenon.
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