We are increasingly concerned about the domestic economy and risk of further downgrades through June
We are increasingly concerned about the domestic economy and risk of further downgrades through June. The budget has impacted consumer confidence and, once again, Canberra is a major distraction to the marginal spender. Add to this the extended Easter/Anzac holiday period, and unseasonal warmth on the East Coast during April/May. Feedback from a range of companies of late suggests broader trading conditions have deteriorated from mid-April. As a reminder, we have minimal exposure to retail stocks and companies heavily relying on corporate spending. In recent weeks we have seen downgrades from Chandler MacLeod (labour hire), and retailers RCG Group (Athlete's Foot), Noni B, and Super Retail Group, which we believe is a prelude to further negative newsflow. Read more from the Pengana Emerging Companies Fund here: (VIEW LINK)
Pengana Capital Group (ASX: PCG) is an ASX listed diversified funds management group specialising in global and Australian managed funds, with distinct investment strategies that aim to deliver superior risk-adjusted returns to investors.