Monthly, we update our wholesale investors on what’s happening in the market. Running what’s probably the only late-night trading desk from New Zealand, we’re well-positioned to feel the pulse of the market’s direction.
Sometimes things have to get worse before they get better. That’s something I’ve noticed in every major trouble in life. And in financial markets.
There are those who say…
‘This time is different.’
‘The world is heading for a terrible recession.’
But this is just part of the cycle. A fork in the road.
Economies are starting to slow as the painful medicine of higher interest rates saps their heat. Even the remarkable US expansion is now slowing.
This means the cycle is starting to turn. And, at some point, so too will the interest rate cycle.
Do not expect interest rates to come back to sub 3% any time soon. The long-run historic position for interest rates (since the advent of banking) is between 4% to 5%.
Yet earnings for the sort of value stocks we target are trucking along just fine. Dividends appear robust. And the Dow just had its best monthly gain in more than 45 years.
Investors are playing catch up after months of overselling.
Overall, for the month of October 2022, we were up 6.14% across the composite portfolio (total aggregate return across all portfolios following the strategy). This brings our overall return for the year tracking at –3.66%. And our average annualised return since inception at 14.74% p.a.
Please see our performance chart for more details.
We encourage you, if you’re able to, to add funds to your account at this time so we can pursue more opportunities as the market strengthens.
This is the moment to act. To be decisive. To take action.
Editor, Wealth Morning
Past performance is not an indicator for future performance. Your actual portfolio will differ from the composite portfolio mentioned. The information contained in this document does not constitute an offer to sell or a solicitation to buy an investment, nor should it be construed as investment advice. Vistafolio investment services are available to Eligible Investors and Wholesale Investors (not to Retail Investors) as defined in the Financial Markets Conduct Act (2013).