Trending On Livewire: Weekend Edition - Saturday 29th March
Markets are choppy, but volatility is relative. With the ASX and S&P 500 down 7%, now’s the time to reassess your portfolio.
I love equities. I started in finance as an equity analyst, and there’s nothing like backing a burgeoning company and watching it turn into a 10-bagger. Bonds will never give you that. But if you want to understand how all the pieces of finance fit together, talk to a fixed income manager.
Bond markets are the deepest in the world. They are connected to policy, inflation, economic growth—and they fund the companies we love to follow.
I’ve had the pleasure of hosting two seasoned fixed income investors on the Rules of Investing podcast recently. The latest, Charlie Jamieson of Jamieson Coote Bonds, shared plenty of insights. One in particular stuck with me: “Actual volatility is not that high, but the volatility of volatility is quite high.”
Markets feel choppy, but the overall movement hasn’t been as extreme as it seems. The ASX 200 and S&P 500 are down about 7% from mid-February highs—after two straight years of 20%+ returns in the US. Offshore yields have shifted but Australian bond markets not so much. Uncomfortable? Yes. But hardly the stuff of markets being on fire.
For investors, that means there’s still time to reassess. The boat hasn’t sailed and markets haven’t collapsed, forcing us to rely on that weakest of strategies—hope.
So, hold your portfolio up to the light. If it looks risk-heavy from past years’ decisions and you’re unsure about staying all-in on risk, now’s the time to adjust. You still have time.
Chris Conway, Managing Editor, Livewire Markets
The world is complex. Beyond the headlines is where the real opportunities lie
When markets are moving violently - like they are now – investors can’t help operating at a summary level. But looking beyond the headlines, challenging what you think you know, and diving deeper into complex issues will almost certainly yield a better result. One of the dominant narratives right now is that Trump’s tariffs will lead to higher inflation. Logically, it makes sense. But the reality could look quite different according to Charlie Jamieson, Co-Founder of Jamieson Coote Bonds. In the following Rules of Investing podcast, Jamieson unpacks the key themes in markets: growth, inflation, and interest rates. He also explains why investors have a great opportunity right now to rethink and reposition their portfolios.
Why you shouldn't sit still in this market (and an ASX buy and sell from Martin Currie)
Market volatility continues as President Trump follows through on tariff policies, leaving investors debating their strategies. While some stick to buying dips or rotating to quality, others remain cautious amid policy uncertainty. Reece Birtles, Chief Investment Officer at Martin Currie, takes an active stance, emphasising a ‘defensive value’ approach.
"We are seeing the Australian market as very distorted coming into this period, with high index concentration, trend following, risk taking and valuation dispersion measures at extremes"
In the following Q&A, Birtles shares more about how he has been positioning, and shares an ASX buy and sell.
Top 3 Wires this Week
Here are the weeks top viewed or liked wires by our subscribers:
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Some of the best wires from our Contributors this week
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This week’s chart of the week comes from a Bloomberg article titled Active management lives on in ETFs after $1 trillion asset haul. Whilst US-centric, it captures the ongoing trend of investors putting money in ETFs broadly, and active ETFs specifically. Who said active was dead?
Chris Conway, Managing Editor, Livewire Markets
Weekly Poll
With markets settling a touch after a bout of volatility, now could be a good time to take stock (no pun intended) and reassess.
What is your biggest concern for the rest of the year?
a) Global recession
b) ASX volatility
c) Interest rates
d) Inflation
e) Something else
LAST WEEKS POLL RESULTS
We asked "Do you invest in gold?"
The poll shows 36% preferred gold mining stocks, 29% didn’t invest in gold, 17% owned gold ETFs, 10% held physical gold, and 8% were considering adding gold to their portfolios.
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Livewire Markets
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
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Livewire Markets
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
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