Viewpoint: Bullish
We have exposure to this $2.1bn business in our Emerging Companies Portfolio and its also being considered for our Flagship Growth Portfolio although it would likely be a relatively small position due to the stocks high volatility.
Markets are driven by good old fashioned supply and demand and no more so than in the land of commodities, whether it be copper, crude oil or wheat, if demand by end users exceeds supply prices go up, it’s a simple concept. Uranium markets are currently experiencing lack of supply and appear to be headed towards meaningful material deficits in the late…
US stocks endured a tough session overnight with weakness being led by the tech stocks after the US posted its highest inflation print in 40-years. However we feel the sectors gaining strength, it’s not down for the week which we believe is bullish compared to the impact similar inflation data was exerting through January.
Global stock markets have clearly moved on from “Buy growth at any price” which in our opinion has led to a market which is now one of the most exciting in recent years for active investors i.e. as we’ve already witnessed over the last 3-months some obvious positions are often going to become undone. This brings us to OZL which MM holds in our Flagship Growth…
The ASX200 rallied 0.3% on Thursday although unfortunately it lost around 70% of its early morning gains as profit taking appeared to roll through the broad market with over half of the market finally closing down on the day. The local index has already rallied 2.3% this week and 4.5% this month hence its not surprising a few nervous investors / traders took some…
Australia’s largest gold miner NCM has been a thorn in our side since we went long in 2020, gold hasn’t moved yet NCM has managed to fall close to 20%. We do like NCM due to the underlying macro reasons discussed earlier but a break back above the $29 currently now feels a very big ask.
Encouragingly gold has largely held steady while bond yields and the $US rallied, this is a bullish sign i.e. a market that doesn’t fall on bad news is a strong market. If the ducks can align with the $US and bond yields then gold looks poised for a strong rally. Rising inflation is often touted as a tailwind for gold but that’s clearly not been the case over the last 12-months.
The Nikkei has been one of the equity indices best performers over recent years and it still looks solid although we now have a slight preference for European names over the coming months.
US stocks continue to push higher in the face of much negative commentary, the trouble is people are focusing on the tech / growth names as opposed to the broader markets – we agree that tech stocks will struggle to make fresh highs. However the Dow which doesn’t carry such high percentage of tech stocks is now back within 3% of its all-time high which I’m sure will confound many stock market sceptics.
