Trending On Livewire: Weekend Edition - Saturday 23rd August
ASX 200 hits 9,000 as reporting season heats up, results swing stocks, and inflation worries simmer amid all-time highs.
Good morning,
It was a bullish week on the ASX, at least at a headline level, despite plenty going on beneath the surface. The ASX 200 crossed 9,000 for the first time on record, lifting year-to-date returns to double digits for the first time this year (+10.3%), before fading a touch yesterday.
Beneath the surface, there were plenty of hefty results reaction – in both directions. CSL, JHX, IPH and ING had results days to forget, whilst ZIP ripped, as did BXB and SUL. More broadly, PMIs are booming, with the US Composite PMI - which includes manufacturing and services - at 55.4, a fresh three-year high. Meanwhile, the eurozone Composite PMI at 51.1, marked the fastest private sector growth in 15 months.
So, how long can the rally continue? Well, investors are rightly starting to ask that question, with Longview Economics’ Chris Watling outlining some warning signs he’s watching in this wire. For now, the music keeps playing but, as I’ve noted before, numerous fund managers have told me recently that they’re dancing a little closer to the exit.
Have a great weekend.
Chris Conway, Managing Editor, Livewire Markets
The Magnificent 7 and the myth of mean reversion
Investors have long questioned valuations of the “Magnificent 7” - Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla - but evidence suggests fears of a bubble are misplaced. Unlike industrials and utilities, which have seen the most speculative inflows in 2025, tech multiples have barely expanded. The Mag 7 now trade at only a ~25% premium to the S&P 500, below their 5-year average of ~40%, with earnings outpacing valuations. Adjusted for growth, most trade at or below market PEG ratios, aside from Apple and Tesla. History shows sector dominance often lasts decades, and US tech’s leadership looks supported by structural change.
FNArena reporting season monitor: August 2025 - Week 3 (158 stocks covered)
Welcome to the third weekly report for the August 2025 results season. The FNArena Reporting Season Monitor reports ratings, consensus price target changes, and brief summaries of the collective responses from FNArena's database of brokers for each of the stocks covered. The latest update is now available for download, with coverage of the 158 stocks that have reported results in August. You can access the full PDF in the attachment at the bottom of this wire. Readers should be aware that it doesn't matter what profit or loss has resulted from a company. What's important is how the stock fared against consensus forecasts – whether management delivered a "miss" or a "beat".
Top 3 Wires this Week
Here are the weeks top viewed or liked wires by our subscribers:
.jpg,https://www.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBMCtYRFE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--6dd58b81b68784d88c0e9e15c5966030bebb344b/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBPZ2wzWldKd09oTnlaWE5wZW1WZmRHOWZabWxzYkZzSGFRSmtBbWtDV0FFPSIsImV4cCI6bnVsbCwicHVyIjoidmFyaWF0aW9uIn19--dbcf8d7b6290376ca515990a95f79dcba96deb5c/8-etfs-2026_adam-dawes-andrew-wielandt_primary%20(1).jpg)
Funds
8 ETFs with the tick of approval from advisers for FY26
View
Equities
Are CSL's best days behind it?
View
Funds
The low-cost ETF set to challenge incumbents
View
Our Experts
Some of the best wires from our Contributors this week:
Equities
No fireworks in early August results
View
Macro
Compound interest and returns are an investor’s best friend
View
Equities
The ASX retail stock executing on its turnaround plan and primed for a consumer rebound
View
Chart of the Week: Think inflation is under control? Think again…
According to Apollo Global Management, year-ahead inflation expectations are currently sitting at 3.3%, significantly above the Fed’s 2.0% target. Whilst that doesn’t sound diabolical, consider the context. Trump is pleading for rate cuts, at the same time as pushing through tax cuts and the Big Beautiful Bill, which is expected to grow the US deficit by $4.1 trillion over a decade – all of which are inflationary policies. Meanwhile, global equity markets are at all time highs.
The bond market isn’t buying it - hence why the US 10-year yield, which does the heavy lifting in terms of financing households, companies and the US government - has remained little changed from eight months ago at around 4.3%. Even if the US market does get more rate cuts in the near-term, the inflationary impacts could very well see the Fed reverse course sharply, and begin hiking rates aggressively to get inflation back down to target – and that won’t be good for equities at all.
Chris Conway, Managing Editor, Livewire Markets
Weekly Poll
We’re more than halfway through reporting season and, as expected, companies that have delivered have been rewarded, whilst companies that have missed have been hammered (here’s looking at you, CSL and JHX).
So, how has the season been treating you so far?
a) Sailing through without a worry in the world (so far)
b) Some good, some bad – even Steven really
c) I’ve copped a couple of big whacks, but I’m a long-term investor so not worried
d) Somebody call a medic, my portfolio is on life support
LAST WEEKS POLL RESULTS
We asked "The ASX 200 hit a record high during August reporting season, even as the Macquarie Market PER climbed to a record. What’s next?"
The poll shows 40% said a pullback is likely as valuations are too high, 36% said the market is due for consolidation after a strong run, 13% said they’re waiting for more results before deciding, and 12% said earnings momentum will keep driving gains.
Get the Weekend Edition straight to your inbox
Popular and exclusive content from the week sent every Saturday morning
SUBSCRIBE TO TRENDING ON LIVEWIRE - IT'S FREE
Other Newsletters across our network
- Trending on Livewire Daily: Get the best of Livewire by signing up to our popular daily newsletter
- Market Wraps: Concise market recaps of the ASX's most critical events 2x daily
- Weekly Wrap: A summary of market highlights from the week, sent each weekend
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
1 contributor mentioned
Livewire Markets
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
Expertise
Livewire Markets
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
Expertise
Comments
Comments
Sign In or Join Free to comment
most popular
Equities
Are CSL's best days behind it?
Livewire Markets
Funds
8 ETFs with the tick of approval from advisers for FY26
Livewire Markets