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20170623 – Portfolio Activity

20170623 – Portfolio Update from Michael Cooper on Vimeo.

In another volatile week of trading, the ASX200 has fallen more than a 1% after failing to break through 5800 on the upside early in the week. Financials have been in the spotlight as the Senate passed the bank bill levy unchanged and Moody’s downgraded credit ratings of all Australian banks. Importantly this step to include the big four banks had previously been omitted when S&P announced their downgrade last month. Moody’s noted that their downgrade was largely due to housing debt risks. The RBA minutes released on Tuesday also noted they are carefully monitoring the housing and labour markets, given concern over house prices, household debt and a lack of wage growth. This is nothing new and was not unexpected, the minutes went on to highlight that the RBA still has a 3% growth target for the future.

Overseas summer has officially started in the US this week and the fourth of July holiday will see the beginning of ”driving season”. Even with inventories expected to decline through this period oil has continued to fall and is now in a technical bear market having declined more than 10% over the past few weeks.

IMPLEMENTATION TIMEFRAME

As mentioned earlier we have had another volatile week for Australian Equities which underlines the uncertainty of short term market movements. It is for this reason that we generally manage initial implementation on new accounts over a number of months, whilst taking guidance from your Adviser. We observe market conditions and a variety of metrics across the range of asset classes to ensure we best utilise the discretion afforded by the Individually Managed Account structure. We do this in a manner consistent with our long-term forecasts, though we also seek to add value to your portfolio by taking advantage of these shorter-term market fluctuations.

PORTFOLIO ACTIVITY

  • With weakness in the local market we made purchases for newer accounts in the Midcap ETF (MVE) and Smallcap ETF (MVS).
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