Things that Go Bump In The Night

Things that Go Bump In The Night

For the second time since February traders have been reminded that shockingly markets don’t always close in the green and that volatility and periods of poor market performance are a fact of life when it comes to investing in equity markets

The end of last week saw the ASX tumble to threaten key support levels on the back of a weak overnight lead from the US as investors hit the panic button in response to President Trumps call to place tariffs on some $60 billion dollars worth of Chinese imports. Gold prices found support as investors ran for safe haven assets whilst our big miners where hammered with RIO, BHP and FMG all down by around 3% as iron ore prices were hammered during Chinese trade.

Whilst these trade fears coupled with the February's inflation scare might have prompted many investors to chop and change their portfolio as they change their investment philosophy to suit short term market conditions here at Harbourside Capital we are standing by our tried and tested investment thesis. As market volatility has increased we have cycled out of our high beta stock exposures and moved into cash in an effort to minimize portfolio losses on the downside. Protecting our client’s capital and actively managing tail risk is a key part of our investment thesis and is something we actively practice throughout the entire market cycle but particularly now where volatility is heightened and the potential for losses is real. As market conditions improve we will increase our client’s equity exposure and focus on moving into high quality stocks that have momentum behind them and that are trading at an attractive price as a result of being caught in the broader market selloff.

For more information about our investment strategies or to invest with Harbourside Capital contact us at

Source – Investing, ASX

Harbourside Capital Pty Ltd (ACN: 166 765 537) is a Corporate Authorized Representative (CAR No. 448907) of HLK Group Pty Ltd (ACN: 161 284 500) which holds an Australian Financial Services License (AFSL no. 435746). Any information or advice contained in this article is general in nature and has been prepared without taking into account your objectives, financial situation or needs. All securities and financial products or instruments transactions involve risks. Past performance is not an indication of future performance.

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