Originally Posted by
Beagle
Fisher funds have loved on FPH for many years...same for MFT and IFT, the 3 combined making up a staggering 52% of their "diversified" listed Kingfish fund as at the most recent disclosure. We know ATM was once one of their favored market darlings too and they "managed" the level of their investment there at what could best be described as a "glacial speed". (I'll leave others to decide for themselves on whether the lack of diversification amounts to "recklessness").
Thing is, with the entire FF group, listed, unit trust and Kiwisaver funds all having their funds allocated along similar lines, with them formerly being a default Kiwisaver provider they used to get tens of millions of fresh funds coming in every month to support their investment thesis...now not so much.
Its hard to see how a company on a forward PE of about 40 with those earnings augmented by the strong tailwind of Covid can be an opportunity other than for people shorting it.
Is high inflation and much higher interest rates going to bite huge chunks out of the price of high PE stocks this year ? You folks be the judge but for my money I am hiding in value stocks, GARP (growth at a reasonable price stocks) GNE and a very high current allocation to cash and short term deposits. it might be worth noting that cash outperformed the market by 10% this month !
Its very UGLY out there, be careful folks, there's no rule that says you always need to be fully invested in the market.