Viewpoint: Bullish
MM’s most direct exposure to growth and tech is through the QQQ Trust (ETF) in our Global Macro Portfolio, at this stage we remain bullish with a target of fresh 2021 highs which has a bullish read through for equities over the coming weeks.
One stock feeling the full brunt of selling overnight was The Trade Desk (TTD US) which has been the leading stock in our international equities portfolio up multiples of our entry price, the ~12% decline overnight highlighting how influential yields are on previously hot momentum type stocks.
US tech stocks punched lower to test their 2021 lows, at this stage we feel this is a move to fade in the short-term with major support very close on hand.
In our opinion one of the major keys to outperformance this year will be the ability to press the sell button and take profit, earlier we showed how a number of “hot stocks” like Xero (XRO) and Appen (APX
Strandline announced it has signed a 5-year offtake agreement for 100% of its Rutile production out of the Coburn mineral sands project in WA. The agreement if one of the last few pieces of the puzzle for the project which now has a buyer over 90% of its planned early life production, totalling an estimated $US600m in revenue secured.
This first addition to the list might surprise many but however bullish we are on a stock / sector MM always remains open-minded to taking some cream off the top if we feel optimism has stretched too far.
Copper caught my attention this morning after it bounced strongly following its recent 7% pullback, a move which clearly helped sentiment in the resources space e.g. BHP rallied over 4% in the US
We’ve mentioned DBI before however they reported last week and the result was a little confusing, particularly around the distribution given they talked about an aggregate $22.5m being paid out, however the key takeaway is that it’s on track to meet prospectus forecasts and yield more than 8% based on current prices
A small cap (~$200m) we have written about in the past, Wisr was added to the portfolio a few months after inception and has been weak even since. WZR is a finance business that they’ve packed up and called a ‘financial wellness eco-system’ which then feeds into a personal loan business. It recently topped $1b in originations and has moved into other verticals including car loans.
