Key takeaways from the session are below:

  • Interest rates have been the driving force behind market movements, and recent macro issues have created a lot of market noise. As investors it’s important to think and act for the long-term with patience and focus on valuation which is the greatest protection against investment risk.
  • The last 10 years have been an anomalous period for financial markets with low rates. It is going to be very different going forward, far more challenging for investors and they will need to be more discerning as to where they invest capital.
  • This has resulted in interesting valuations in areas like the European & US banks as beneficiaries of higher rates and the cyclical forces that have seen a correction in stock prices and brought valuations into the bottom quartile of their historical range such as Charles Schwabb Heineken and Disney.
  • For 25 years, PM Capital has continued to focus on the genuine long-term anomalies - With the right approach and mindset we expect great investment opportunities will exist.

 

 

This insight is issued by PM Capital Limited (ABN 69 083 644 731 AFSL No. 230222) as the investment manager for the PM Capital Global Opportunities Fund Limited (ACN 166 064 875, ‘PGF’) and as the responsible entity for the PM Capital Global Companies Fund (ARSN 092 434 618), the ‘Fund’.
It contains information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities of PGF or of the Fund. The information herein seeks to provide an insight into how and why we make our investment decisions, and is subject to change without notice. This information does not constitute advice or a recommendation, and is subject to change without notice. It does not take into account the objectives, financial situation or needs of any investor which should be considered before investing. Investors should consider ASX announcements, the Target Market Determinations and the current Product Disclosure Statement (which are available from us), and obtain their own financial advice, prior to making an investment. The PDS explains how the Funds' Net Asset Value are calculated. Past performance is not a reliable guide to future performance and the capital and income of any investment may go down as well as up.