Financial markets, a mean reverting machine

David Clark

Koda Capital


Following on from their discussion last quarter, fellow Koda Partner Frank Macindoe joins David in another episode of Inside the Rope to provide an update on the recent performance of the Koda Enduring Equities Portfolio (KEEP), along with his outlook on markets, broad market concerns such as inflation, economist forecasts, and company valuations.

Frank flags his concerns regarding the recent strong performance of financial markets, and notes their mean-reverting nature, in which periods of strong performance often preceded periods of mean reversion. Frank highlights the often inaccurate economic forecasts that are distributed throughout the media, however, he does confirm that he has an eye on inflation, and that all positions currently held in the KEEP portfolio can pass on any cost pressures to consumers should inflation become persistent.

Over the twelve months to 30 Sep 2021, the Koda Enduring Equities Portfolio is up 38.83% compared to the ASX200's return of 30.56%. Over 10 years, the reference portfolio has returned 19.91% p.a. compared to the ASX200's return of 10.79% p.a.

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This research note has been prepared without consideration of any client's investment objectives, financial situation or needs. Before acting on any advice in this document, Koda Capital Pty Ltd recommends that you consider whether this is appropriate for your circumstances. While this document is based on the information from sources which are considered reliable, Koda Capital Pty Ltd, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Koda does not accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. © Copyright Koda Capital 2020 | AFSL: 452 581 | ABN: 65 166 491 961 | www.kodacapital.com

Adviser & Partner
Koda Capital

David Clark is an Adviser & Partner at Koda Capital. In his podcast ‘Inside the Rope’, David interviews some of the leading minds in wealth management.

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