There are 3 major areas of the economy PM CAPITAL watch closely, says Portfolio Manager Uday Cheruvu: industrial, consumer and services. The industrial sector is indicating a slight slowdown, but not a recession. Consumers are spending, and they’re growing their spending - they’re starting to spend their oil savings. He says the consumer is key, the services sector, and ultimately the overall economy will follow the consumer. “The macro is telling us that there’s not a broad-based slowdown, but there is not an acceleration in growth either.” He acknowledges that the slowdown in the Australian market is real, but it’s not dramatic. Unsurprisingly, the slowdown is on the export side, centered around mining and energy. This has been happening for some time though, and the pressure is beginning to stabilise. “In our view, the economy is going to stay in neutral gear for the next few months.”
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.