Global equity markets continued to surge recently with the S&P500 making the fresh all-time highs we have been forecasting all-year. Hopefully, the local ASX200 will regain some much needed "mojo" into Christmas, it currently sits 4.9% below this year's high, 12.1% below its 2015 high and a horrible 28% below its all-time high. On the index level at MM we channel a significant part of our energy into tracking the US market for 2 main reasons: 1. The US Index has shown more clarity to us over recent years, enabling MM to be an aggressive buyer when many were scarred e.g. early 2016. 2. The local ASX200 and US stocks are highly correlated when it comes to large swing lows / highs and underlying trends, just not in pure relative performance. In this report we look at gold, the precious metal that can do very well in bad times and many think rising inflation, the question is when do we start buying gold stocks again considering our medium-term concern for equities. See link here: (VIEW LINK)
James is a Portfolio Manager within Shaw and Partners heading up a team that manages direct equity and option portfolios. He is also the Primary Contributor to Market Matters, a daily investment report that offers real market insight.