This week Macro Investor Vol 1, No 11 continued our recent theme of looking beyond the mining boom for tomorrow’s profit-drivers, as well as trading current conditions, whatever they may be.
We continued our series of profiles on dollar-exposed and out-of-fashion industrial stocks. This week’s four stocks included a hidden IT gem with a global market share, a medical stock with a global cure, a locally owned but global consumer products manufacturer and an education services firm pushing into Asia.
Our trades section offered a range of plays leveraging off the shift in European strength and these are already deep in the money. We also explored a range of post earnings season trade triggers for specific Australian stocks.
In fixed interest, we cautioned on the risks of CBA PERLS.
In property, we examined the growing risk around the Perth property market and its exposure to commodity cycles.
As you can see above, results are speaking for themselves. The MacroIncome and MacroGrowth model portfolios are absolute return funds designed to yield above the risk-free rate of term deposits. MacroIncome is on track for 6.1% annualised and MacroGrowth 11% annualised. Performance will vary with market conditions of course but the barbell structures and hedging strategies will ensure MUCH lower volatility than more widely used allocation models, let alone than in the broader market.
The MacroTrades portfolio is clearly on a tear. This is great. But it is worth recalling that this is high volatility portfolio so significant corrections will come and are normal for such an approach. For those that are wondering, we are preparing to provide MacroTrades recommendations on a daily basis.
A free 21 day trial is available at the site.
