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.
Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.