Portfolios finally got a reprieve this week as the ASX200 rallied 3.4% (at the time of writing). Reporting season is now in full swing, with big names such as Telstra, CSL, Dominos and CBA reporting already. FNArena have been kind enough to give Livewire readers access to their reporting season monitor, if you want to catch up on results you can find it here: (VIEW LINK) Commsec have an interactive reporting season microsite which also includes a reporting calendar for some of the more widely owned stocks. It’s available here: (VIEW LINK). As usual, I have picked out 3 wires from that were published on Livewire this that I found particularly interesting. It might give you some inspirations for some weekend reading. Once again I have thrown in a bonus exclusive from Livewire.

1) The companies at the top of the ASX200 list continue to face a range of structural headwinds. While investors might think they avoid this with an active manager, some managers’ top 10 holdings look remarkably similar to the index’s. I’m a big believer in active management, but I also think that if you’re paying 1-2% p.a., you don’t want their holding to look the same as a 0.2% p.a. index fund. In difficult markets like this, I feel true active management demonstrates its real value. Monash Investors explain, in simple term, the pitfalls of benchmark investing in this article: (VIEW LINK)

2) Each Quarter, Watermark Funds put out ‘The Leading Edge’ and without fail, it always provides some great insights. This quarter was no exception. It’s a long read at 23 pages, but it’s worth your time. This quarter they’ve taken a more global view. I thought their analysis on Apple was useful, but in particular, their views on the healthcare sector stood out to me. As an investor, I love to learn something new, so their explanation on the differences between biologic and small molecule was exciting to read. (VIEW LINK)


3) Even as a value investor, the big questions on my mind of late have been macro-related. Value investors tend to look at the economy through a different lens than other styles of investing, so I found their views timely. If I’m to compare the current feeling in the markets to the other dips we’ve had since 2012, it seems to me that ‘this time is different’. In the recent past, falls have universally been viewed as a buying opportunity, but even the seasoned pros are asking: Is now the time to buy? (VIEW LINK)

This week’s bonus is our latest episode of Buy Hold Sell. In this episode, we have a look at some companies which have recently reported. There big caps and small caps; value, growth and momentum stocks – something for everyone.  (VIEW LINK)

I hope you enjoyed our content this week, and as always, good luck in the markets next week.


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James Marlay

Have a good weekend Pat