Trending On Livewire: Weekend Edition - Saturday 28th September

If this week in markets were the title of an episode of Friends, they may well call it “The One Where the Rotation Started”. Of course, the rotation in question is the move out of Banks and defensive names into the long-suffering mining sector.

A comprehensive stimulus package from the Chinese government, along with promises of more to come, sent mining shares and their commodities north. And with it, another week of closing at a record high for the ASX 200. Next week will see crucial PMI and jobs data released internationally while retail sales and housing data headline the data docket locally.

Hans Lee, Senior Editor, Livewire Markets

The ASX small and micro-cap stock that could grow into a "forever" holding

It's no wonder that Australian investors love spotting a small cap that becomes the next household name. After all, the BHP's (NASDAQ: BHP), the CSL's (NYSE: CSL), and the Wesfarmers' (ASX: WES) had to start somewhere!

But spotting the next winner is easier said than done. That's why we have asked Spheria Asset Management's Matthew Booker  to do some of the hard work for you.

In this episode of The Pitch, Booker shares one theme that he is particularly excited about, one that is not so hot, and a company that is small now but could grow into a forever portfolio holding.

WATCH | READ 

Buy Hold Sell: Gold soars to new highs - but fundies are selling these 2 stocks

Can gold prices continue to trade beyond record highs? And if so, which ASX-listed players are most likely to benefit?

To find out, Livewire has handed over the reins to our friends in Perth, Money of Mine, for their specialist knowledge of the resources sector. Host Matt Michael sits down with Perennial's Sam Berridge and Argonaut's David Franklyn.

Together, they analyse the lay of the land when it comes to gold, their preferred exposures in terms of established players versus juniors for greater gold price leverage, and share the stocks they would be selling despite the stellar run in prices.

WATCH | READ | LISTEN

Inside Macquarie's unique approach to consistent alpha

To learn more about quantitative investing, quantitative ETFs and the major trends shaping ETF markets, Livewire's Ally Selby was joined by Blair Hannon, ETF Strategist at Macquarie Asset Management.

Together, they discuss some common misconceptions surrounding quantitative investing and the most reliable signals of the last few years.

Plus, Hannon also shares why he strongly believes that passive investing is not creating a bubble in markets.

LISTEN TO THE PODCAST

Top 3 Wires this Week

Here are the weeks top viewed or liked wires by our subscribers:

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The 3 traits of a winning small cap (and 10 stocks that possess them)

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The Australian share market is at record highs. This indicator suggests it's not cheap...

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These ASX resources stocks stand to benefit the most as China stimulus boosts iron ore price

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Our Experts

Some of the best wires from our Contributors this week

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How to find an ASX "super stock" early (and an example of one)

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Commodities

The Chinese iron ore cost of production

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Plenty of traps in valuing equities

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Chart of the Week: Is the gap between resources stocks and bank stocks about to narrow dramatically?

One of the most remarkable things about this era for the Big Four banks is not just how hard the four major stocks have run but how much investors have piled into the banks at the expense of resource names.

This chart, current to two weeks ago and created by Morgan Stanley, shows the performance gap between the Big Banks and the large-cap resources space over just the past year.

As you can see, the performance gap is +57.5% in favour of the banks. But did this week mark the peak of this gap? We’ll have to wait and see.

Hans Lee, Senior Editor, Livewire Markets

Weekly Poll

It’s been a stellar week for commodities - SGX iron ore futures cracked US$100/tonne, silver surpassed 2012 highs, copper cracked US$10,000/tonne, and gold continues to smash every record in its long storied history.

If you had a fresh dollar to spend today, which commodity would you add to your portfolio?

1. Iron ore / Iron ore stocks
2. Copper / Copper stocks
3. Silver / Silver stocks
4. Gold / Gold stocks

VOTE NOW

LAST WEEKS POLL RESULTS

We asked "Do you think they’ve made a mistake or was it the right call?"

The poll shows majority support (63%) for the Federal Reserve's 50-point interest rate cut, indicating it's seen as an appropriate economic response. However, a significant minority (37%) disagrees, reflecting the complexity and divided opinions surrounding monetary policy decisions and their potential impacts.

SEE RESULTS BREAKDOWN

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