Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

3 key investor takeaways from the week

The S&P/ASX 200 (ASX: XJO) finished broadly flat across the shortened week while US stock markets fell by around 2%.

Here are my three key investor takeaways from the week.

Losing patience

Netflix’s (NASDAQ: NFLX) quarterly earnings report didn’t appear all that bad at first blush, with subscribers actually growing by 500,000 when the impacts of cancelling Russian accounts were excluded.

But the forecast of further losses of up to 2 million subscribers shocked the market with even well-known hedge fund managers like Bill Ackman of Pershing Square caught out by the surprise.

Given the number of analysts that cover the company, it seems strange that there would be such a significant miss on earnings, but clearly investors are tiring of any company that fails to drastically exceed expectations.

Netflix and many of the other larger tech companies have been major beneficiaries of passive ETF flows, along with quality and market cap driven factor strategies, with the reversal likely self-reinforcing.

That said, understanding what the market is willing to pay for the company is more difficult than ever.

Cyclical, structural or neither

One of the more interesting commentaries during the week came from global fund manager GQG Partners Inc (ASX:GQG), whose CIO Rajiv Jain reiterated his previous comments around the cyclicality of technology companies.

Whilst many managers believed tech companies could grow in perpetuity, GQG pointed out that historically, tech and digital investment had always occurred in waves with Netflix more proof that this time was no different.

Pricing power matters

Pricing power seems to matter most in this environment, but management only knows if they have it sometime after raising prices.

The likes of Brambles Limited (ASX: BXB), ResMed CDI (ASX: RMD) and Woolworths Group Ltd (ASX: WOW) clearly do, but who else does?

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Powered by

Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

Skip to content