Trending On Livewire: Weekend Edition - Saturday 7th December
My former boss, Marcus Padley, penned a wire in August 2021 titled "Signs of the Top” in which he wrote “Signs of the top are things that, (only) in hindsight, will make it obvious that the market was coming up to a top. Things that in the cold light of a correction will blatantly reveal that investors, if not the world, had lost their objectivity”. It was a great piece and it is as relevant today as it was then. Why? Well, records everywhere continue to tumble, the two biggest this week being the Dow Jones through 45,000 and Bitcoin through US$100,000. Although the Dow is admittedly a relic of a bygone market era, it still occupies the minds of investors, whilst Bitcoin – up 30% in the last month alone – is the modern-day poster child for market exuberance.
During the week we also saw ASX founders of Wisetech, ProMedicus, Zip Co and Hansen Technologies selling large stakes. Coincidence, or are these signs of the top? As Padley rightly points out, we will only know in hindsight, but it does feel as though things are getting a little bit toppy, to say the least. Now, please don’t interpret this as me calling the top – I wouldn’t be so bold. But it might be worth dusting off your investing plan and reminding yourself of your risk management strategy.
With any luck, markets will keep rallying all the way through December and January, typically a strong seasonal period for markets. But if they don’t, just make sure you’re not left holding the bag. Have a great weekend.
Chris Conway, Managing Editor, Livewire Markets
Invest in companies with good corporate cultures (and an unlikely example to get you started)
Investing is, in some ways, like a job hunt. In a job hunt, evaluating whether a future employer’s corporate culture fits with your own culture is a very important part of the process. In investing, finding companies that have happy team members can be great fundamental indicators for businesses that can add alpha to your portfolio. One person who certainly subscribes to this view is Ryan Quinn of WCM Investment Management. In this edition of The Pitch, we ask Quinn to identify what makes a good corporate culture, some examples of corporate culture red flags, and an example of a company that demonstrates strong corporate culture.
J.P. Morgan is bullish on the next 10-15 years. Here’s where it sees the best opportunities
Future Generation Women is a fund-of-funds initiative supporting gender equality and opportunities for Australian women and children. The 12 fund managers forego fees, donating 1% of the total pool to charitable causes. They also incorporate a gender lens into investments, considering factors like equity and leadership, whilst a pathways program offers mentorship to young women. Future Generation has donated over $87 million since inception and manages over $1 billion. Research shows female-led investment strategies outperform, averaging 1.8% higher returns annually. The fund aims for above-market returns while acting as a diversified, low-risk safe haven, whilst helping to address gender inequality’s $128 billion annual cost to Australia.
Top 3 Wires this Week
Equities
Trust in quality
View
Equities
How to harness the 'size effect' in Australian small caps
View
Macro
You never get hit by the bus you’re watching
View
Chart of the Week: Do you hear what I hear?
This week, Apple Music and Spotify released their highly anticipated “Wrapped” summaries for 2024. In case you don’t know what these are, these are summaries designed to highlight what you listened to over the last 12 months and are great fodder for social media as you compare your audio (music, podcast, audiobooks) tastes to your friends' tastes.
But rather than get your loved ones the latest album or concert tickets to an artist that they love, maybe next time you should get them Spotify shares. Spotify shares are up 158% in the past 12 months and Apple shares are up 28% in that same time frame. That way, next year, they may be able to afford all the concerts they want to go to - and then some.
Happy listening.
Hans Lee, Senior Editor, Livewire Markets
Weekly Poll
This week we saw some significant selldowns from founders: WTC co founder sold $1 billion, PME founders sold $510 million, ZIP founder sold $100 million, HSN founder sold $40 million.
How much attention do you pay to insider moves?
a) Pay close attention and it factors into my decision making
b) Pay little attention, insiders are always buying and selling
c) Pay no attention, it has no impact on my investment decisions
LAST WEEKS POLL RESULTS
We asked "How will Australian equities perform in 2025?"
The poll results show that 43% believe it will return less than the J.P. Morgan forecast of 7.7%, 36% agree with the forecast and 21% anticipate higher than 7.7% returns.
How do you rate this Weekend's Trending On Livewire?
After selecting, you'll have the option to provide more detailed feedback in our quick survey.
Get the Weekend Edition straight to your inbox
Popular and exclusive content from the week sent every Saturday morning
SUBSCRIBE TO TRENDING ON LIVEWIRE - IT'S FREE
Other Newsletters across our network
- Trending on Livewire Daily: Get the best of Livewire by signing up to our popular daily newsletter
- Market Wraps: Concise market recaps of the ASX's most critical events 2x daily
- Weekly Wrap: A summary of market highlights from the week, sent each weekend
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
2 topics
2 contributors mentioned
Livewire Markets
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
Expertise
Livewire Markets
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
Expertise
Comments
Comments
Sign In or Join Free to comment
most popular
Equities
The 10 most-tipped ASX income stocks for 2025
Livewire Markets
Equities
Global growth and shorting opportunities abound
Plato Investment Management