Conviction Insights represents our highest conviction calls from across our coverage universe. This month we remove United Malt (UMG) from our Conviction Insights lineup. A large commercial malt producer with processing plants in North America, Australia and the UK, its removal is driven by two factors:
1st Dec, 2020
After a long period in the wilderness for the value style, the prospect of multiple effective vaccines reviving economic activity has seen a sharp rally in value stocks this month. In our weekly asset allocation view, we weigh up both sides of the value versus growth debate and outline the pieces falling into place for the revival to continue relatively strongly into 2021.
30th Nov, 2020
Real estate investment trusts (REITs) performed poorly in the depths of the COVID-19 crisis (March-May 2020), masking what had been a period of strong outperformance (close to 30%) for REITs versus the market since 2010. As domestic prospects look set to improve, we have become more positive on the outlook for REITs. In our Wilsons Australian Equity Focus List update we:
26th Nov, 2020
In May this year, we outlined the bullish case for emerging market equities (EM). In this week’s asset allocation view we check in on our positive view and outline the factors behind our overweight position:
23rd Nov, 2020
News of early phase 3 vaccine trial results from both Pfizer and Moderna have, for the first time in 9 months, given the market a visible path out of COVID-19 lockdowns and economic dislocation. While this is undeniably good news from both a health and economic perspective, investors across different sectors in the Australian market have wildly different views around when a vaccine will become effective from an earnings perspective. This week we take a look into the market’s assumptions around the speed of the recovery across different sectors and share how Wilsons is thinking about playing the earnings recovery. We look at:
19th Nov, 2020
The outperformance of the US equity market has been a significant and persistent trend for much of the past 10 years. US outperformance is intricately linked to the outperformance of growth over value stocks, or in sector terms, the dominance of the US technology sector over the rest of the global equity market. In this week’s macroeconomic review we discuss:
18th Nov, 2020
The list of ingredients needed for cyclical recovery continues to build. This month we have further rotated the Wilsons Australian Equity Focus List towards cyclical recovery beneficiaries which now comprise 60% of the Focus List, up from 45% in September. New developments in the COVID-19 vaccine race this week further support this case. In our November Australian Equities report we:
12th Nov, 2020
The backdrop for the Australian equity market is getting incrementally more positive as the market attempts to break out of its range trading pattern of the past 5 months. We upgraded Australia to overweight versus global equities in mid-October, and support for the local market looks to have built over the past few weeks.
9th Nov, 2020
As we approach the halfway mark of the Australian AGM season, at this stage, the season is proving no threat to the improving earnings trend that first began to emerge in September. Updates on corporate profitability and trading conditions have led to small positive revisions to market earnings estimates, and positive earnings revisions are outnumbering downgrades 12:1.
5th Nov, 2020