Patrick Poke

Reporting season draws to a close this week, and it’s been another thriller. With 1 day to go, the index is down for the week, but up over the 9 days of reporting so far. The big news of the week was BHP results, where they abandoned their progressive dividend policy and cut the dividend - see comments from some resources specialists: (VIEW LINK). This is now the third contributor prediction from last year (VIEW LINK) that has played out – and it’s only February! It seems this week the equities analysts are hiding, so I bring you 3 pieces of strategy and macro analysis that I found interesting.

1) Rudi Filapek-Vandyck at FNArena is one of the most respected independent strategists in the country, and for good reason. His independence allows him to speak his mind, and he has a propensity for not sugar coating issues. The were a couple of messages I found valuable. Firstly, even during a bear market the can be significant rallies. Secondly, don’t be complacent – make sure you have a plan. (VIEW LINK)

2) It’s often difficult to remain object about a market when you’re caught up in it – much like the old anecdote of the slowly boiling frog. While I don’t want to fan the flames of an already intense argument on the subject of Australia’s banks and housing market, I thought it was interesting to see how investors overseas view Australia’s markets – or in the case of one Swiss analyst, didn’t even know CBA existed! Thanks to Hugh Dive from Aurora Funds Management for this piece. (VIEW LINK)

3) Simple, effective, to-the-point. This isn’t how I’d describe many pieces of macro analysis, but it definitely fits the bill here. In 400 words, Romano Sala-Tenna from Katana Asset Management has managed to sum up exactly what are the key problems the economy faces today. (VIEW LINK)

This week’s piece of bonus content is a new episode of Buy Hold Sell, hot off the press. This fresh episode again features Steve Johnson from Forager Funds and Roger Montgomery from Montgomery Investment Management; this week we spoke to them about some former high flyers which have taken a dive – some further than others. (VIEW LINK)

We hope you enjoyed Livewire this week, and as always, good luck in the markets next week.


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