Stock prices have been moved more by macro events than by individual outlooks in the current business cycle, but that’s all starting to change, says Andrew Martin, Portfolio Manager at Alphinity Investment Management. As bond prices recently begun to fall, there was divergence among many of the ‘bond-proxies’.
One beneficiary of this trend is Macquarie Group, who’s share price has drifted this year while bond yields fell and the AUD rallied. Despite the tepid reception by the market, the outlook appears bright:
“Twice in the last two months they’ve reaffirmed guidance. In fact, their latest update said that the first half would be better than last year, which implies the full year guidance is quite conservative”
Martin says the company has been left behind due to macro concerns. In today’s video, he explains how the business is actually quite different from common perceptions.
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