The big picture view on Aussie equities

In the under-researched and often illiquid world of small and mid-caps, stocks are largely driven by individual factors. If a company’s product or service succeeds and earnings improve, the stock price usually follows. But, as Matthew Haupt, Lead Portfolio Manager at WAM Leaders explains in the latest episode of The Rules of Investing, in the world of large caps, where stocks are heavily researched and traded by professionals, macro factors play a much larger role.

“Given the breadth of the revenues of these bigger companies and the slower growth rates, the macro factors are more of a driver.”

In this episode, he tells us how he uses macro analysis to help inform the stock picking decisions at WAM Leaders, we hear his views on a range of key ASX stocks and sectors, and he shares his take on Jeremy Grantham’s prediction of a bubble in US equities.

Time stamps and discussion topics:

• 2:42 – The lessons from five years of running WAM Leaders.
• 7:00 – The special challenges of managing large caps.
• 9:09 – The macro indicators to watch and how to interpret them.
• 11:52 – What are the macro issues that Australian equity investors should be focused on?
• 14:25 – Will inflation be transitory, cyclical, or structural? How to invest for any eventuality.
• 17:40 – Are US equities in a bubble?
• 21:10 – Diving into Wesfarmers and Australian retail.
• 26:52 – Is it finally time for insurers to shine?
• 33:56 – Australian banks has ‘the easy money been made’?
• 35:29 – The ASX sector that looks most attractive today, and the best stocks to benefit.
• 39:42 – Matthew answers our three favourite questions.

Book recommendation:

• Inside the House of Money: Top Hedge Fund Trader on Profiting in the Global Markets, by Steven Drobny. Available on Amazon and Booktopia.
  

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WAM Leaders provides investors with exposure to an active investment process focused on identifying large-cap companies with compelling fundamentals, a robust macroeconomic thematic and a catalyst. For more information hit the contact button below.