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  • Writer's pictureMarcus Bogdan

Market Update & adding to positions (BHP, MQG, QUB & RHC)

Increased BHP Group (BHP), Macquarie Group (MQG), Qube Holdings (QUB) and Ramsay Health Care (RHC)

As the coronavirus has become more threatening outside China, concern over the downward pressure on global growth has significantly darkened. Equity markets suffered their worst weekly decline since the GFC prompting the Federal Reserve response that it would “act as appropriate to support the (US) economy”. More broadly, a coordinated response by global central banks should provide a level of solace to financial markets that the transitory economic shock of the coronavirus virus can be limited. Evidence that Chinese firms are restarting activity, albeit at low levels, is an encouraging sign for global supply chains. After seven straight declines with the ASX 200 falling  more than 10%, we have taken advantage of our elevated cash levels to begin adding to existing portfolio positions in BHP Group (BHP), Macquarie Group (MQG), Qube Holdings (QUB) and Ramsay Health Care (RHC). The market correction has provided an opportunity to purchase high quality assets at more attractive valuation levels. Nevertheless, risk assets remain vulnerable to further weakening global economic data and to downward revisions of corporate earnings. Our portfolios continue hold elevated cash levels, ready to respond when attractive valuations emerge in high quality assets.


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