Reporting season update:
Volatility has created opportunity – Three stocks to watch
This last quarter of 2018 has been especially volatile, which spooked a lot of nervous investors, with money flooding out of the market, and the All Ordinaries closing down almost 10% over the 3 months.
Does this mean you shouldn’t be investing in shares?
Quite the contrary. As we mentioned last month, volatility is a normal part of the market and history has taught us that the market goes up more than it goes down,and the recovery is often rapid, as we saw with the subsequent 4% rebound in January, and to date is over 10% up from its low.
Star Stocks delivered strong returns during the month of January, outperforming the market once again.
In this webinar, Elio D’Amato and Jason Bartolo discuss the principles of disciplined investing to contend with uncertainty, including:
- Maintaining a focus on quality and fundamentally healthy businesses;
- Managing your asset allocation – taking profits on the upside and being ready to buy back in when discount opportunities emerge;
- Understanding your tolerance to risk and investing appropriately; and
- Using the advanced tools in Stock Doctor to proactively and effectively manage your portfolio.
If you haven’t been applying these techniques, it’s not too late to benefit from the opportunities the market’s volatility is presenting. With reporting season in full swing, view the webinar recording to add rigour to your investment approach.
Elio joined us back in 2003 as an equities analyst. He’s now our Executive Director, a media commentator and delivers our education workshops for investors, offering a wealth of industry knowledge. Known in the industry for his expertise, he has regular media appearances with ABC TV, ABC Radio, Sky Business Channel, Smart Investor, Australian Financial Review, ASX and more.
Senior Business Development Manager - Stock Doctor
Jason joined the Lincoln team in early 2012. He is the conduit between our SMSF trustees, Financial Planners and Association Groups in successfully integrating our research into their strategies and processes. His experience involves on boarding of both the self-managed and managed fund investor.
1/9/1995 is the date of inception of the Star Growth Stocks notional portfolio.
7/8/2012 is the date of inception of the Star Income Stocks notional portfolio.
All figures, information and illustrations are as at 11 February 2019 unless stated otherwise.
Past performance is not an indication of future performance.
Important: Lincoln Indicators Pty Limited (Lincoln) ABN 23 006 715 573, as Corporate Authorised Representative of Lincoln Financial Group Pty Ltd ABN 70 609 751 966, AFSL 483167. This communication may contain general financial product advice. Our advice has been prepared without taking account of your personal circumstances. You should therefore consider its appropriateness, in light of your objectives, financial situation and needs, before acting on it. If our advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of and consider the Product Disclosure Statement (PDS) at www.lincolnindicators.com.au before making any decision.
The Star Stock criterion has not remained constant but has been revised and updated over time. The quoted performance reflects actual Star Stock recommendations as they have been published to the public over time and have not been retrospectively implemented. Except as otherwise specifically provided by law, Lincoln Indicators shall not be responsible for any investment decisions or for damages or other losses resulting from the use of the indicators or accompanying material or its content.
^Disclosure – Star Stock Past performance: Star Stock (encompassing Star Growth and Star Income) returns were calculated by Lincoln as a measure of the historical performance of the strategy for the notional portfolio, reflecting the changes in recommendations and the performance of them over time and do not represent an actual investment. Investments go up and down. Past performance is not a reliable indicator of future performance and should not be relied upon.
The performance over the stated time/s reflects the capital return and dividend income paid on a notional portfolio that is equally invested in each Star Stock at the commencement of the relevant performance period quoted. The portfolio is rebalanced to equal weight exposure when the composition of the notional portfolio changes. Dividend distributions are reinvested in the specific investments which generate the distribution on the appropriate ex-entitlement dates.
Transactions are calculated at the closing prices for the next trading day and it is assumed there is sufficient market liquidity to make the required trades at this price. Transaction costs of 0.5% on each purchase and sale have been incorporated into the performance figure. The calculation makes no allowance for other distributions, government charges or tax, or annual subscription fees payable to Lincoln.
Performance varies positively and negatively month to month reflecting the volatility of the equity’s asset class. Therefore, no performance figure should be taken as a reliable indicator of future performance.
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