Three things that got the team talking this week

Weekly insights from the Trail

Three things that got the team talking this week

March 28, 2024April 5th, 2024

1. Beta beware!…

Low Beta stocks are as cheap as they have ever been. This suggests the market is pricing in strong economic growth into stocks.

Source: JP Morgan (March 2024)

2. Extra gas…

Shell provided an interesting update on the air quality in Beijing as the city has transitioned from coal to gas. The increased demand for gas has seen a steady reduction in the number of unhealthy air quality days.

Source: Shell (March 2024)

3. Housing headroom…

Australia’s auction numbers over the past week were up 51% y/y, and the highest for this week since 2016. Although we note we may be seeing a slight pull forward in numbers given the Easter holiday.

Meanwhile the RBA’s financial stability review found over 40% of borrowers don’t have enough liquid savings to cover mortgage repayment and essential expenses for 3 months.

Source: Jarden (March 2024)

Source: ABS, RBA, Melbourne Institute, Securitisation System (March 2024)

Disclaimer

This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

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Weekly insights from the Trail