In my final video insight for the year, I wanted to share some potentially exciting news for all you small cap stock enthusiasts out there. I delve into the recent developments at the U.S. Federal Reserve and what they mean for small cap stocks. Will 2024 be the year for small caps?
If you aren’t already aware I am optimistic about the prospect for small caps in 2024. Provided we have a combination of positive economic growth (even a short technical recession won’t upset my thesis) and a continuation of the disinflation that has informed the path of consumer prices over the last year, innovative small cap growth companies have the opportunity to catch up to mega-caps that dominated the investment landscape in 2023.
In this week’s video insight, I delve into the discussions surrounding the Reserve Bank of New Zealand’s proactive approach to inflation, the nuanced shifts in major economies, and the potential impacts of tightening monetary policies.
In this week’s video insight I wanted to discuss the contrasting predictions from Australia’s major banks regarding interest rates, painting a nuanced picture of the economic landscape. Shayne Elliott from ANZ anticipates sustained rate hikes amid escalating growth pressures. In contrast, NAB’s Ross McEwan suggests rates might have peaked, while CBA hints at a possible rate cut. These varied perspectives hold significant implications for households with mortgages and investors.
In a world where the interest rate tide has been rising, savvy investors are sailing towards more stable horizons. The Aura High Yield SME Fund, designed for wholesale investors, has emerged as a beacon of consistent returns, offering a compelling case for investors looking to diversify their portfolios away from volatile seas.
In this week’s video insight, David Buckland and I discuss Seven Group Holdings (ASX: SVW), an Australian operating and investment group in the media, mining and construction industry in which the Montgomery Small Companies Fund holds a substantial stake. We spotlight the remarkable alignment between the Stokes family’s leadership and investors’ interests, emphasizing Seven Group’s astute counter-cyclical investment strategy. Additionally, we explore their recent strategic acquisition of Boral (ASX: BLD), shedding light on their concerted efforts to enhance operational efficiencies and bolster margins. Catch the full discussion here.