GARY Top 10: Delivering positive returns in a bear market with yield investing

Yield investing in the next decade will be substantially different to the last few decades as interest rates remain elevated.
Mathan Somasundaram

Deep Data Analytics

As economic cycles take over from the stimulus cycle, the bear market cycle is likely to continue into the early part of 2023 as global recession worries spread. Investing in the last four decades has mainly been based on buy and hold strategy due to falling rates. The interest rate in the next decade is likely to average higher than the previous decade. Stimulus over the last fifteen years has eaten into future growth and that means we are likely to experience low growth in the decade ahead.

Global manufacturing moves into contraction as global recession worries rise.
Global manufacturing moves into contraction as global recession worries rise.

Global manufacturing has moved into contraction while Central Banks remain in rate hikes and tightening financial conditions into 2023. Elevated inflation and fading growth mean global recession/stagflation worries will continue to rise as consumer spending starts to fade into 2023. Market optimism is mainly based on Central Bank pivot and more stimulus in an elevated inflation environment.

Investing through the cycle means the strategy must accommodate bull and bear market trends while managing risk. At Deep Data Analytics (DDA), we evolve with market trends and manage risk to deliver outperformance in all market cycles. The GARY (Growth At Reasonable Yield) model offers exposure to the best 10 stock ideas that manage growth, value, yield, and risk in the current volatile bear market. The model is managed dynamically using data analytics and will evolve over time with changing macro/microdata.

The GARY Top 10 at the end of Dec 2022

Note: DDA may or may not have made changes to the model holdings since the end of Dec. We continue to see the cycles changing and the model portfolios evolving with that.

GARY keeps delivering in all market cycles...performance chart above excludes dividends.
GARY keeps delivering in all market cycles...performance chart above excludes dividends.

Never miss an insight

If you're not an existing Livewire subscriber you can sign up to get free access to investment ideas and strategies from Australia's leading investors.

And you can follow my profile to stay up to date with other wires as they're published – don't forget to give them a “like”.

Deep Data Analytics provides this financial advice as an honest and reasonable opinion held at a point in time about an investment’s risk profile and merit and the information is provided by the Deep Data Analytics in good faith. The views of the adviser(s) do not necessarily reflect the views of the AFS Licensee. Deep Data Analytics has no obligation to update the opinion unless Deep Data Analytics is currently contracted to provide such an updated opinion. Deep Data Analytics does not warrant the accuracy of any information it sources from others. All statements as to future matters are not guaranteed to be accurate and any statements as to past performance do not represent future performance. Assessment of risk can be subjective. Portfolios of equity investments need to be well diversified and the risk appropriate for the investor. Equity investments in listed or unlisted companies yet to achieve a profit or with an equity value less than $50 million should collectively be a small component of a balanced portfolio, with smaller individual investment sizes than otherwise. Investors are responsible for their own investment decisions, unless a contract stipulates otherwise. Deep Data Analytics does not stand behind the capital value or performance of any investment. Subject to any terms implied by law and which cannot be excluded, Deep Data Analytics shall not be liable for any errors, omissions, defects or misrepresentations in the information (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the information. If any law prohibits the exclusion of such liability, Deep Data Analytics limits its liability to the re-supply of the Information, provided that such limitation is permitted by law and is fair and reasonable. Copyright © Deep Data Analytics. All rights reserved. This material is proprietary to Deep Data Analytics and may not be disclosed to third parties. Any unauthorized use, duplication or disclosure of this document is prohibited. The content has been approved for distribution by Deep Data Analytics (ABN 67 159 532 213 AFS Representative No. 1282992) which is a corporate approved representative of BR Securities (ABN 92 168 734 530 and holder of AFSL No. 456663). Deep Data Analytics is the business name of ABN 67 159 532 213.

10 stocks mentioned

Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 30 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment