The Lander Report - Market & Portfolio Insights

Welcome to the latest edition of The Lander Report.

In this detailed analysis by Dr Jerome Lander, you’ll hear the full story with compelling clarity, logic and insight.  

Dr Jerome Lander’s key insights:

• The final quarter of FY23 has contained many surprises.
• The resilience of the equities market has been surprising, as has how well many economies worldwide have held up.
• However, the rising cost of capital will likely impact markets with a lag, and central banks have made it clear they are still working on their fight against inflation. In that environment, equity markets are likely to fall.
• There remains debate over whether the US Fed is finished with interest rate rises. There is considerable market optimism that interest rates have peaked and will fall in the coming year, but all indicators suggest that is unlikely.
• There are signs of speculation about AI stocks. Despite the real theme, we believe valuations have been pushed too high.
• Inflation remains stubbornly high.
• The geopolitical climate, particularly in Russia, is confused. The lack of clarity is causing many investors to ignore their potential impact on inflation and market risk.
• Equity market performance remains soft overall despite the excitement about AI stocks. A broad-based bull market has not returned, and concerns of a recession remain.
• Resources and commodities are a multi-year theme that demands investor attention. Resources will perform relatively well in a period of volatility and higher inflation. Furthermore, resources are one of the few areas of the market that appear undervalued because the market is broadly not recognising the significant supply-side resource issues.
• We believe it’s vital to keep equity weightings low to support diversification at this stage of the cycle. We are keeping our powder dry to capitalise on prospective cheaper equity values.
• It’s essential not to chase equity markets and risk assets in this environment. We’re in a period of volatile inflation and economic uncertainty.
• The theme should be prudence, being diversified, giving greater weight to alternatives and not depending on the old way of relying on the performance of financial assets alone.
  
  

About Dr Jerome Lander and Dynamic Asset

Dr Jerome Lander is responsible for asset allocation, fund manager selection and portfolio construction of Dynamic Asset's Goals Based Portfolios. 

Dr Lander is well-known in the institutional investment community. His 20 years of experience in asset management and investment strategy demonstrate his strong capabilities in multi-asset class investment management.

He was the Chief Investment Officer of the WorkCover insurance fund where he was responsible for managing a $12 billion institutional investment fund, reporting to the Investment Board. In that time, the investment fund ranked as the best institutional investment fund of its kind in Australia and the best performing of all Mercer’s (nearly 100) institutional clients.

Jerome has also been a Director of Investment Consulting for Russell Investments, a Diversified Assets Portfolio Manager at Credit Suisse and Head of Manager Research for Van Eyk. Jerome has also served as a Board member for the Investment Management Consultants Association (IMCA).

If you would like to find out more about Dynamic Asset's Managed Account Services under the direction of Dr Jerome Lander contact Dynamic Asset today.

Disclaimer 

This material has been prepared by Dynamic Asset Consulting Pty Limited (ABN 82 079 145 298, AFSL 502623) of Level 20, 56 Pitt Street Sydney NSW 2000. Any content provided in this Report is for general information purposes only. It is not personal advice and does not take into account the investment objectives, financial situation or needs of any person. Please seek specific advice before making a decision in relation to any investment. Before making any decision about any product you should obtain a Product Disclosure Statement (PDS) or Investment Mandate (IM) document for further information. A copy of our PDS or IM is available from your adviser or by contacting us through our website at www.dynamicasset.com.au 

The information is provided in good faith and we do not make any representation or warranty as to its accuracy, reliability or completeness. Any information contained in this presentation is subject to change without prior notice by Dynamic Asset Consulting and Dynamic Asset Consulting is not obliged to update any information. References made to any third party or their data is based on information that Dynamic Asset Consulting believes to be true and accurate as at the date of this Report but without independent verification. All information provided in this Report is correct as at the date of this Report. To the extent permissible by law, we do not accept any responsibility for any error, omission, indirect or consequential loss or damages (whether arising in contract, tort, negligence or otherwise, in any case whether foreseeable or not). Any person receiving this document should rely and act on that basis and entirely at his / her own risk. 

Past performance is not a reliable indicator of future performance. The value of an investment may rise or fall with the changes in the market. Returns are not guaranteed and actual returns may vary from any target returns described in this communication. Unless stated otherwise Dynamic Asset Consulting returns are net of all asset manager, program adviser and administration fees. The measure of inflation is the Consumer Price Index, calculated by the Australian Bureau of Statistics. Where the official number was not available at the time of publication a proxy CPI value has been calculated. 

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