‘Group Think’ and busting Australian investing myths

PM Capital

PM Capital

In the recent quarter the market finally caught up with the fact that China is slowing more quickly than the ‘bogus’ official trajectories. Paul Moore, Chief Investment Officer of PM Capital, says the sell off caused by this realization serves as an important reminder of the dangers of investor ‘group think ‘ in an increasingly process driven investment world. “It was not that long ago that China was supposed to grow forever and thus resource stocks were the place to be. With such a high weighting in the local ASX index, BHP was a must own in Australian mandated investment portfolios.” With commodity prices peaking in 2011 and BHP shares 65% off their highs, the reality of declining demand for resources has finally sunk in. Moore says that until resources companies face up to reality and cut paying dividends the sector remains one to avoid. In this video Moore highlights another investing myth that has recently been busted in the Australian market and points to the sector he believes is most vulnerable to a correction. (VIEW LINK)


2 topics

1 stock mentioned

We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world, using a focused, patient and considered approach to finding simple investment ideas.

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.