Trending On Livewire: Weekend Edition - Saturday 12th July

Right now, markets are at all-time highs, investors are making money, and the party is in full swing. But for the second time in short time, I had a fund manager this week tell me that they are dancing close to the exits – stealing a line from former Citigroup CEO Chuck Prince, who said it in 2007 before the onset of the GFC.

Make no mistake, no one is suggesting there will be another GFC, but with markets hitting fresh highs at the exact same time that Trump’s tariff deadline is approaching (he slapped 35% tariffs on Canada yesterday), investors are probably right to be cautious. Let’s not forget that it was the last tariff imposition that proved the catalyst for a circa 20% slump in global equities in April.

Closer to home this week, Northern Star and Ora Banda Mining reminded investors why it’s tough investing in miners as opposed to the underlying commodity. Both stocks tanked on higher-than-expected cost guidance for FY26. Having a better time of things were rare earth stocks, which surged after the Pentagon invested US$400 million in MP Materials, which owns the only operational rare earth project in the US. Meanwhile, the RBA unexpectedly kept rates on hold despite markets pricing in a 90% chance of a 25 bps cut.

Next week, US earnings season kicks off and the market is expecting S&P 500 earnings growth to decelerate to 5% year-on-year in Q2, down from 13.3% in Q1. This would mark the lowest rate of growth since the fourth quarter of 2023.

And closer and closer to the exit we dance.

Have a great weekend.

Chris Conway, Managing Editor, Livewire Markets

The first half of 2025 was no walk in the park for tech investors, but it proved one thing beyond doubt: AI is here to stay, and it's more globally relevant than ever. In the following exclusive interview, Dominic Rizzo, Global Technology Portfolio Manager at T. Rowe Price, explains how his portfolio not only weathered the storm but outperformed through April’s sharp correction. He shares his playbook for navigating uncertainty, the key traits he looks for in tech companies, and where he sees the next wave of opportunity. He also highlights two under-the-radar AI beneficiaries worth watching. To find out which stocks he likes, and why, read on.

GET INSIGHTS NOW

Should governments step in to make housing more affordable for younger Australians - even if it means prices fall?

a) Yes - housing should be affordable for the next generation
b) No - protecting property values is more important
c) Only if prices fall slowly over time
d) Not sure, it’s a complex issue

VOTE NOW