1 00:00:05,730 --> 00:00:09,420 Sean Aylmer: Welcome to the Fear & Greed business interview. I'm Sean Aylmer. It was a big week 2 00:00:09,420 --> 00:00:12,599 Sean Aylmer: last week for the ASX. The local market came close 3 00:00:12,599 --> 00:00:15,299 Sean Aylmer: to a record high. Wall Street did hit a hit 4 00:00:15,299 --> 00:00:17,279 Sean Aylmer: record high, so where's it all heading? It's a good 5 00:00:17,279 --> 00:00:20,009 Sean Aylmer: time to assess where we're at and where investors are 6 00:00:20,009 --> 00:00:22,890 Sean Aylmer: seeing the opportunities. Remember, this is general information only and 7 00:00:22,890 --> 00:00:25,770 Sean Aylmer: you should always seek professional advice before making investment decisions. 8 00:00:25,770 --> 00:00:29,790 Sean Aylmer: Matthew Kidman is the principle of Centennial Asset Management. Matthew, 9 00:00:29,790 --> 00:00:30,989 Sean Aylmer: welcome back to Fear & Greed. 10 00:00:31,349 --> 00:00:35,009 Matthew Kidman: Hi, Sean. Yes, and Dow, 40,000 ever so briefly during 11 00:00:35,010 --> 00:00:35,549 Matthew Kidman: the week. 12 00:00:35,609 --> 00:00:38,790 Sean Aylmer: Yeah, very exciting, very exciting. What's driving it? 13 00:00:39,570 --> 00:00:41,430 Matthew Kidman: Well, really when you look at it, we had a 14 00:00:41,430 --> 00:00:43,769 Matthew Kidman: ripping run from probably the end of October, start of 15 00:00:43,769 --> 00:00:49,799 Matthew Kidman: November 2023 into the end of March. That mainly was 16 00:00:49,799 --> 00:00:53,459 Matthew Kidman: based around strong US economy. Things not as bad as 17 00:00:53,459 --> 00:00:54,900 Matthew Kidman: what everyone... Just remember it was supposed to be in 18 00:00:54,900 --> 00:00:57,270 Matthew Kidman: a recession by now given the interest rate hikes of the last 19 00:00:57,270 --> 00:01:01,320 Matthew Kidman: couple of years, but it wasn't. Of course, the belief 20 00:01:01,320 --> 00:01:04,530 Matthew Kidman: that maybe we'd seen the worst of inflation. By about 21 00:01:04,530 --> 00:01:07,649 Matthew Kidman: March though it became pretty obvious that maybe inflation was 22 00:01:07,650 --> 00:01:10,229 Matthew Kidman: a bit sticky at this last mile of trying to 23 00:01:10,230 --> 00:01:12,840 Matthew Kidman: get, we've gone from 8% down into the threes, but 24 00:01:12,840 --> 00:01:15,179 Matthew Kidman: we can't get into those target ranges with a two 25 00:01:15,180 --> 00:01:18,660 Matthew Kidman: in front of it. That was the beginning of this 26 00:01:18,660 --> 00:01:21,179 Matthew Kidman: sideways movement now. I know we want to talk about 27 00:01:21,179 --> 00:01:23,848 Matthew Kidman: record highs, but we reached a high in March. We 28 00:01:23,849 --> 00:01:26,340 Matthew Kidman: fell away during April and we've had a bit of 29 00:01:26,340 --> 00:01:30,090 Matthew Kidman: a bounce back in the US earnings reporting season, but 30 00:01:30,090 --> 00:01:32,580 Matthew Kidman: we are kind of going sideways at the moment. The 31 00:01:32,580 --> 00:01:35,040 Matthew Kidman: Dow couldn't go on from 40,000. It's tapered off a 32 00:01:35,040 --> 00:01:38,819 Matthew Kidman: little bit the end of last week. We're tracking it 33 00:01:38,819 --> 00:01:42,030 Matthew Kidman: and as usual, interest rates and earnings are driving the market. 34 00:01:42,959 --> 00:01:45,540 Sean Aylmer: Where to from here though? I mean the sideways movement 35 00:01:45,599 --> 00:01:47,909 Sean Aylmer: over the past couple of months, do you expect that 36 00:01:47,910 --> 00:01:49,470 Sean Aylmer: to continue for the rest of this year? 37 00:01:49,890 --> 00:01:51,780 Matthew Kidman: I think the middle of this year is going to 38 00:01:51,780 --> 00:01:54,210 Matthew Kidman: be a bit choppy. The market can't get a grip 39 00:01:54,210 --> 00:01:58,469 Matthew Kidman: on this inflation story and so it's been through earnings 40 00:01:58,469 --> 00:02:01,740 Matthew Kidman: results in the US and they were generally better. You 41 00:02:01,740 --> 00:02:04,830 Matthew Kidman: can see in the company's technology, once again did well. 42 00:02:05,309 --> 00:02:09,450 Matthew Kidman: Manufacturing's doing quite well. The consumer has tapered off though, 43 00:02:09,450 --> 00:02:12,480 Matthew Kidman: so you've seen stocks like Lululemon, which were hero stocks 44 00:02:12,480 --> 00:02:14,520 Matthew Kidman: in the US, come off quite a lot in the 45 00:02:14,520 --> 00:02:17,879 Matthew Kidman: last two or three months, and it's actually working out 46 00:02:17,880 --> 00:02:21,150 Matthew Kidman: the same way here. Behind that though is the bigger 47 00:02:21,150 --> 00:02:25,439 Matthew Kidman: issue around market movements, which is where do interest rates 48 00:02:25,439 --> 00:02:29,010 Matthew Kidman: go? And we still don't quite know. The market keeps thinking 49 00:02:29,010 --> 00:02:30,720 Matthew Kidman: they've got a grip on it, but then it doesn't 50 00:02:30,720 --> 00:02:33,630 Matthew Kidman: quite work out the way they want so what happens 51 00:02:33,630 --> 00:02:36,359 Matthew Kidman: from here is anyone's guess, but I'm going to have 52 00:02:36,480 --> 00:02:40,560 Matthew Kidman: a guess. That is that inflation probably hangs around here 53 00:02:40,980 --> 00:02:44,100 Matthew Kidman: and the economy's slow gradually into the course of the 54 00:02:44,100 --> 00:02:47,280 Matthew Kidman: year and then we might get a window for a 55 00:02:47,280 --> 00:02:49,380 Matthew Kidman: rate cut. I think in Australia you can definitely do 56 00:02:49,380 --> 00:02:53,099 Matthew Kidman: it. Since Easter, end of March, start of April, the 57 00:02:53,099 --> 00:02:56,519 Matthew Kidman: consumer has softened. Just about every company that's reported, every 58 00:02:56,520 --> 00:02:59,788 Matthew Kidman: company we've spoken to, the consumer has backed off a 59 00:02:59,788 --> 00:03:01,650 Matthew Kidman: little bit. Now that doesn't mean inflation is going to 60 00:03:01,650 --> 00:03:05,160 Matthew Kidman: come down straight away, but the labor markets should soften 61 00:03:05,280 --> 00:03:07,620 Matthew Kidman: during the course of the year and that will give 62 00:03:07,620 --> 00:03:09,690 Matthew Kidman: us a window to cut rates, maybe the back end 63 00:03:09,690 --> 00:03:11,940 Matthew Kidman: of this year. In the US it's a bit harder 64 00:03:11,940 --> 00:03:14,069 Matthew Kidman: because we've got an election and we've still got a 65 00:03:14,070 --> 00:03:18,060 Matthew Kidman: reasonably strong economy even though things are slowing as well. 66 00:03:18,750 --> 00:03:21,210 Matthew Kidman: It's either September or it's December for them because I 67 00:03:21,210 --> 00:03:23,100 Matthew Kidman: don't think they're going to move in that meeting just 68 00:03:23,100 --> 00:03:27,210 Matthew Kidman: before, just around the election there in November. So the 69 00:03:27,210 --> 00:03:29,490 Matthew Kidman: window is getting very tight for a rate cut, but 70 00:03:30,059 --> 00:03:32,069 Matthew Kidman: if we could get a rate cut, that would help 71 00:03:32,070 --> 00:03:32,819 Matthew Kidman: markets along. 72 00:03:33,990 --> 00:03:35,309 Sean Aylmer: I mean, I want to come onto the local market 73 00:03:35,309 --> 00:03:37,170 Sean Aylmer: now, but I just want to briefly ask you about 74 00:03:37,170 --> 00:03:39,450 Sean Aylmer: Nvidia. How does it just keep going? 75 00:03:40,110 --> 00:03:42,990 Matthew Kidman: Well, its earnings just keep going. Not only is the 76 00:03:42,990 --> 00:03:46,050 Matthew Kidman: demand, obviously it's in the sweet spot. For listeners who 77 00:03:46,050 --> 00:03:51,629 Matthew Kidman: don't know it's the absolute star stock globally and it's 78 00:03:51,630 --> 00:03:53,639 Matthew Kidman: up 239 per cent in the last year, but it's 79 00:03:53,639 --> 00:03:56,129 Matthew Kidman: not a small stock. Its market cap is soaring towards 80 00:03:56,129 --> 00:03:58,619 Matthew Kidman: three trillion. It's right up there with Microsoft and Apple 81 00:03:59,220 --> 00:04:02,880 Matthew Kidman: these days. It's one of the big stocks. What amazes 82 00:04:02,880 --> 00:04:04,500 Matthew Kidman: me is not only the demand, because they make the 83 00:04:04,500 --> 00:04:08,940 Matthew Kidman: chips, those high- powered chips that allow artificial intelligence which 84 00:04:08,940 --> 00:04:12,870 Matthew Kidman: needs a lot of power to work and they're the 85 00:04:12,870 --> 00:04:16,050 Matthew Kidman: main manufacturer of those chips, so it's driving this whole 86 00:04:16,500 --> 00:04:19,500 Matthew Kidman: revolution around artificial intelligence. But what amazes me is not 87 00:04:19,500 --> 00:04:22,529 Matthew Kidman: so much the demand which everyone wants these chips, it's 88 00:04:22,529 --> 00:04:25,859 Matthew Kidman: the fact that they're able to supply them. Their ability 89 00:04:25,860 --> 00:04:29,248 Matthew Kidman: to ratchet up because normally when you get super growth 90 00:04:29,250 --> 00:04:33,238 Matthew Kidman: like these guys have, it can come unstuck because it 91 00:04:33,240 --> 00:04:35,970 Matthew Kidman: just causes too much pressure on the internal mechanics of 92 00:04:35,970 --> 00:04:39,450 Matthew Kidman: a company. But they're flying their earnings. Their quarterly earnings 93 00:04:39,450 --> 00:04:42,540 Matthew Kidman: last week were high expectations and guess what? They beat 94 00:04:42,540 --> 00:04:44,669 Matthew Kidman: it and they gave you a stock split and everyone's 95 00:04:44,670 --> 00:04:47,339 Matthew Kidman: jumping up and down. It's real party time in that 96 00:04:47,339 --> 00:04:48,090 Matthew Kidman: area of the world. 97 00:04:48,600 --> 00:04:50,430 Sean Aylmer: Stay with me, Matthew. We'll be back in a minute. 98 00:04:58,170 --> 00:05:01,469 Sean Aylmer: My guest this morning is Matthew Kidman, principal at Centennial 99 00:05:01,469 --> 00:05:06,810 Sean Aylmer: Asset Management. Okay, let's bring it home. In Australia with 100 00:05:06,810 --> 00:05:09,690 Sean Aylmer: the macro environment that you've just described a moment ago. 101 00:05:11,250 --> 00:05:13,409 Sean Aylmer: Let's start with the retailers because I know you are 102 00:05:13,410 --> 00:05:16,620 Sean Aylmer: very, across many of the retailers and consumer discretionary stocks. 103 00:05:16,620 --> 00:05:17,729 Sean Aylmer: Where do they sit? 104 00:05:18,570 --> 00:05:21,089 Matthew Kidman: Yeah, so I think the retailers, they're peeled off as 105 00:05:21,089 --> 00:05:25,979 Matthew Kidman: a group, especially the discretionary guys. Always there's the non- 106 00:05:25,980 --> 00:05:29,370 Matthew Kidman: discretionary, which are Woolies and Coles and maybe you fit 107 00:05:29,400 --> 00:05:33,000 Matthew Kidman: Wesfarmers in that with Bunnings, with Staples, and of course 108 00:05:33,000 --> 00:05:36,389 Matthew Kidman: Metcash. Then you've got all the discretionary guys from the 109 00:05:36,389 --> 00:05:40,260 Matthew Kidman: electronics to apparel to a whole raft of different furniture 110 00:05:40,260 --> 00:05:43,050 Matthew Kidman: and so on. They've been peeling off for the last 111 00:05:43,050 --> 00:05:46,320 Matthew Kidman: two or three months pretty aggressively. They've been the laggards 112 00:05:46,320 --> 00:05:48,960 Matthew Kidman: in this market. But I think we can set up, 113 00:05:48,960 --> 00:05:51,510 Matthew Kidman: if interest rates can stay steady in the middle of 114 00:05:51,510 --> 00:05:54,330 Matthew Kidman: the year, we're getting those tax cuts in July, so 115 00:05:54,330 --> 00:05:56,940 Matthew Kidman: maybe we are heading towards a bit of a bottom 116 00:05:57,000 --> 00:05:58,589 Matthew Kidman: in the middle of the year and if we do 117 00:05:58,589 --> 00:06:02,760 Matthew Kidman: get an interest rate cut before calendar years out, and 118 00:06:02,760 --> 00:06:05,130 Matthew Kidman: I'm not saying that's certain, but it's a possibility if 119 00:06:05,130 --> 00:06:08,428 Matthew Kidman: inflation can just ease a bit, then maybe we're getting 120 00:06:08,428 --> 00:06:10,828 Matthew Kidman: a good setup for consumer stocks in the back end 121 00:06:10,830 --> 00:06:13,018 Matthew Kidman: of the year. It's not now. They're being sold, the 122 00:06:13,020 --> 00:06:16,920 Matthew Kidman: consumer's being very hesitant. Confidence is down since I said 123 00:06:16,920 --> 00:06:19,740 Matthew Kidman: that Easter period. But watch out for them over the 124 00:06:19,740 --> 00:06:23,700 Matthew Kidman: next two or three months in the dark winter, probably 125 00:06:23,700 --> 00:06:27,510 Matthew Kidman: when everyone goes on holidays in July, school holidays. Everyone 126 00:06:27,750 --> 00:06:30,360 Matthew Kidman: drifts off and they might be bottoming out then, but 127 00:06:30,420 --> 00:06:32,759 Matthew Kidman: we'll have to watch it carefully next lot of results, 128 00:06:32,759 --> 00:06:34,230 Matthew Kidman: but it could be setting up a good opportunity. 129 00:06:35,279 --> 00:06:39,060 Sean Aylmer: Any particular stock in that area that it's worth keeping an eye on? 130 00:06:39,150 --> 00:06:42,360 Matthew Kidman: Oh, look, I don't think you need to be too 131 00:06:42,540 --> 00:06:47,549 Matthew Kidman: selective. We've got some great retailers in this country. By 132 00:06:47,550 --> 00:06:49,589 Matthew Kidman: that stage with prices come off, you go for the 133 00:06:49,589 --> 00:06:52,260 Matthew Kidman: best people in the different sectors, so JB Hi- Fi 134 00:06:52,260 --> 00:06:57,810 Matthew Kidman: in electronics, Scali in furniture. We've like Beacon Lighting, they do a 135 00:06:57,810 --> 00:07:01,590 Matthew Kidman: good job. There's a whole bunch of really good retailers 136 00:07:01,710 --> 00:07:06,120 Matthew Kidman: in Australia. Prices are coming down, multiples are getting crunched. 137 00:07:06,300 --> 00:07:08,189 Matthew Kidman: Just keep an eye on it. As I said, don't 138 00:07:08,190 --> 00:07:10,559 Matthew Kidman: move yet, but keep an eye on it. Don't forget 139 00:07:10,559 --> 00:07:11,100 Matthew Kidman: them totally. 140 00:07:11,910 --> 00:07:14,220 Sean Aylmer: What about industrial? Such a generic term because so many 141 00:07:14,220 --> 00:07:18,660 Sean Aylmer: companies fit into the industrials space from the Treasury Winers. 142 00:07:18,660 --> 00:07:21,059 Sean Aylmer: I mean, all sorts of groups sit in that. What 143 00:07:21,059 --> 00:07:23,700 Sean Aylmer: do you think about industrials generally? Are there any themes 144 00:07:23,700 --> 00:07:26,549 Sean Aylmer: in that area or sectors within industrials that you like? 145 00:07:27,179 --> 00:07:29,940 Matthew Kidman: Yeah, look, as you say, industrials go right across the 146 00:07:29,940 --> 00:07:33,480 Matthew Kidman: board and in Australia you get from global groups down 147 00:07:33,480 --> 00:07:36,510 Matthew Kidman: to domestic. I think on the domestic front there's still 148 00:07:36,510 --> 00:07:39,360 Matthew Kidman: a lot of, it surprises me, but there's still a 149 00:07:39,360 --> 00:07:44,610 Matthew Kidman: lot of spend in certain areas. The energy transition is 150 00:07:44,610 --> 00:07:48,539 Matthew Kidman: a place where there's been money spent. There's little companies 151 00:07:48,539 --> 00:07:53,100 Matthew Kidman: like Genesis Plus that builds the poles and the wires 152 00:07:53,100 --> 00:07:57,929 Matthew Kidman: out there. There's infrastructure stocks that do telcos and other 153 00:07:57,929 --> 00:08:02,070 Matthew Kidman: infrastructure like service stream. They're all doing pretty well. They're 154 00:08:02,070 --> 00:08:05,969 Matthew Kidman: not blowing the barn doors off, but they're doing pretty 155 00:08:05,969 --> 00:08:10,470 Matthew Kidman: well. Property is a bit of a tougher game. Industrials 156 00:08:10,470 --> 00:08:15,719 Matthew Kidman: probably now leveling out after an incredible period and commercial 157 00:08:15,719 --> 00:08:20,399 Matthew Kidman: is still tough. Construction's a bit tough. We know residential 158 00:08:20,429 --> 00:08:22,799 Matthew Kidman: buildings down, so it's a bit of a mixed bag 159 00:08:22,799 --> 00:08:25,980 Matthew Kidman: across the board. Some are doing quite well in the 160 00:08:25,980 --> 00:08:29,369 Matthew Kidman: CapEx cycle or the government's spin cycle. Others that are 161 00:08:29,370 --> 00:08:31,770 Matthew Kidman: related to maybe the property cycle, not so well. 162 00:08:32,400 --> 00:08:33,510 Sean Aylmer: What about the media stocks? 163 00:08:34,200 --> 00:08:37,950 Matthew Kidman: Yeah, been smashed, haven't they? Not great, the media cycle. 164 00:08:38,580 --> 00:08:41,370 Matthew Kidman: It's a bit of a hard one in Australia because 165 00:08:41,879 --> 00:08:48,270 Matthew Kidman: media has had structural change, just not cyclical over 20 years. What 166 00:08:48,270 --> 00:08:50,790 Matthew Kidman: we can buy is probably a bit limited in the 167 00:08:50,790 --> 00:08:54,929 Matthew Kidman: sense they're free to view television and there's still newspapers 168 00:08:54,929 --> 00:08:57,389 Matthew Kidman: and so on rather than in the States where you 169 00:08:57,389 --> 00:09:01,228 Matthew Kidman: get those big platforms, whether it be a Meta or 170 00:09:01,229 --> 00:09:07,380 Matthew Kidman: one of the social platforms. That said, I think we're maybe 171 00:09:07,380 --> 00:09:10,110 Matthew Kidman: getting to a cyclical low on those as well. Once 172 00:09:10,110 --> 00:09:11,610 Matthew Kidman: again, it's a bit like the retailers. There'll be a 173 00:09:11,610 --> 00:09:15,690 Matthew Kidman: time during the course this year that they represent extreme value, 174 00:09:16,049 --> 00:09:18,208 Matthew Kidman: even if there is structural change so keep an eye out 175 00:09:18,208 --> 00:09:25,001 Matthew Kidman: on them. There's Seven and there's NEC and there's Outdoor Media with (inaudible) 176 00:09:25,001 --> 00:09:27,179 Matthew Kidman: and so on. There's opportunities just because they've become 177 00:09:27,179 --> 00:09:32,728 Matthew Kidman: incredibly deep value and executives are pessimistic, a lot more 178 00:09:32,730 --> 00:09:37,980 Matthew Kidman: than anyone else. Companies boardrooms are always slow. Slow to 179 00:09:37,980 --> 00:09:40,949 Matthew Kidman: realize that things turn down and really slow to work 180 00:09:40,950 --> 00:09:44,550 Matthew Kidman: out when things turn up. Follow the consumer. They're always 181 00:09:44,550 --> 00:09:46,828 Matthew Kidman: at the head of the pile. As long as they've 182 00:09:46,830 --> 00:09:50,159 Matthew Kidman: got a job, they'll defer purchases for a while, but 183 00:09:50,160 --> 00:09:52,108 Matthew Kidman: if they feel secure, they'll still go out and buy 184 00:09:52,109 --> 00:09:54,600 Matthew Kidman: something because they always need it. Whether it be a 185 00:09:54,600 --> 00:09:57,600 Matthew Kidman: car or a fridge or whatever it is they need 186 00:09:57,600 --> 00:10:00,270 Matthew Kidman: in their home or in their personal lives, they will move. 187 00:10:01,050 --> 00:10:02,880 Sean Aylmer: I can't let you go Matthew without asking you about 188 00:10:02,880 --> 00:10:04,709 Sean Aylmer: financials. My favorite of course. 189 00:10:04,860 --> 00:10:08,488 Matthew Kidman: Yeah, well you would've been in heaven. We've just had 190 00:10:08,490 --> 00:10:09,569 Matthew Kidman: the banking results. 191 00:10:10,199 --> 00:10:10,650 Sean Aylmer: Great fun. 192 00:10:10,889 --> 00:10:13,200 Matthew Kidman: Yeah, and so the bank's probably done a little bit 193 00:10:13,200 --> 00:10:15,150 Matthew Kidman: better in general. It was a bit mixed between the 194 00:10:15,150 --> 00:10:18,720 Matthew Kidman: big four. CBA only gave you a quarterly update, the 195 00:10:18,720 --> 00:10:21,240 Matthew Kidman: others gave you the half and the half year results 196 00:10:21,240 --> 00:10:24,838 Matthew Kidman: were generally a little bit better. Net interest margin, which 197 00:10:24,840 --> 00:10:28,889 Matthew Kidman: everyone watches closely is probably leveling out. It's still going 198 00:10:28,889 --> 00:10:32,040 Matthew Kidman: backwards a bit, but it's quite complex. About loans they're 199 00:10:32,040 --> 00:10:35,280 Matthew Kidman: writing today compared to loans they wrote 3, 4, 5 200 00:10:35,280 --> 00:10:37,920 Matthew Kidman: years ago. The margins are down a bit, but that 201 00:10:37,920 --> 00:10:40,919 Matthew Kidman: seems to be leveling out. Growth is not too bad. 202 00:10:40,920 --> 00:10:44,099 Matthew Kidman: It's probably bottomed as well. The banks are expensive though, 203 00:10:44,099 --> 00:10:46,679 Matthew Kidman: and I've said that a lot. CBA in particular is 204 00:10:46,679 --> 00:10:50,040 Matthew Kidman: an expensive bank globally, but you'd have to say that 205 00:10:50,040 --> 00:10:53,670 Matthew Kidman: they've got lots of capital. They've been giving it back 206 00:10:53,670 --> 00:10:55,800 Matthew Kidman: to you. Your dividend's probably safe for the moment and 207 00:10:55,800 --> 00:10:59,460 Matthew Kidman: it's quite steady seas as opposed to being rough or 208 00:11:00,690 --> 00:11:03,780 Matthew Kidman: high growth. As you know, or maybe you don't, but 209 00:11:03,780 --> 00:11:06,690 Matthew Kidman: I'll say it, I'm quite bullish on the outlook for 210 00:11:06,690 --> 00:11:09,570 Matthew Kidman: Australia because we're short housing. We've got to resolve that 211 00:11:09,570 --> 00:11:14,070 Matthew Kidman: issue. It's not easy because developers can't make great margins 212 00:11:14,070 --> 00:11:16,049 Matthew Kidman: and prices are stretched, but I think over the course of 213 00:11:16,050 --> 00:11:18,389 Matthew Kidman: the next two or three years, there's got to be 214 00:11:18,389 --> 00:11:21,210 Matthew Kidman: a lot of construction around housing to make up for 215 00:11:21,450 --> 00:11:24,960 Matthew Kidman: what we haven't built in the past. That could be 216 00:11:24,960 --> 00:11:28,290 Matthew Kidman: a great boost, get that top line growing, NIM stabilized, 217 00:11:28,290 --> 00:11:29,848 Matthew Kidman: but it's not quite there yet. There's a couple of 218 00:11:29,850 --> 00:11:31,950 Matthew Kidman: things you've got to wait on, whether it be retailers, 219 00:11:31,950 --> 00:11:35,639 Matthew Kidman: media, banks, I think to really get confident, but they're 220 00:11:35,639 --> 00:11:37,889 Matthew Kidman: in front of us. It looks reasonably positive in the 221 00:11:37,889 --> 00:11:38,400 Matthew Kidman: medium term. 222 00:11:39,240 --> 00:11:40,500 Sean Aylmer: It's a top pickers market then? 223 00:11:41,160 --> 00:11:43,860 Matthew Kidman: Yeah, it always is. I mean, what's doing well in 224 00:11:43,860 --> 00:11:46,860 Matthew Kidman: this market is the consumer slows is obviously those growth 225 00:11:46,860 --> 00:11:51,090 Matthew Kidman: companies that don't really care about that so tech seems 226 00:11:51,090 --> 00:11:52,589 Matthew Kidman: to have raised its head again. If you look in 227 00:11:52,590 --> 00:11:55,110 Matthew Kidman: the US and the Nasdaq's popped its head up again, 228 00:11:55,349 --> 00:11:57,360 Matthew Kidman: it's done best again even though everyone said it couldn't 229 00:11:57,360 --> 00:11:59,850 Matthew Kidman: do in video as we talked about. But even in 230 00:11:59,850 --> 00:12:02,280 Matthew Kidman: Australia, we saw a good result from zero last week. 231 00:12:02,490 --> 00:12:06,600 Matthew Kidman: Smaller one, Gentrack. They're on their own growth path and 232 00:12:06,600 --> 00:12:09,780 Matthew Kidman: people huddle back into those growth stories while the cyclical 233 00:12:09,780 --> 00:12:15,088 Matthew Kidman: element. I think those markets are pretty good. Resources a 234 00:12:15,089 --> 00:12:17,879 Matthew Kidman: bit mixed, but there's some opportunities there too. It's a stock picker's 235 00:12:18,539 --> 00:12:22,199 Matthew Kidman: market within resources. Copper's been on a tear. Not a 236 00:12:22,200 --> 00:12:25,050 Matthew Kidman: lot of exposure there in terms of Australian market. Iron 237 00:12:25,050 --> 00:12:27,718 Matthew Kidman: ore's holding steady while other things have fallen right away 238 00:12:27,719 --> 00:12:31,139 Matthew Kidman: as we know. Nickel's been a problem. Yet you're right, 239 00:12:31,139 --> 00:12:35,279 Matthew Kidman: stock picker's market, but probably anyone who can deliver some 240 00:12:35,279 --> 00:12:38,368 Matthew Kidman: growth and not be too caught by the economic cycle is where you 241 00:12:38,370 --> 00:12:38,790 Matthew Kidman: want to be. 242 00:12:39,450 --> 00:12:41,160 Sean Aylmer: Matthew, thank you for talking to Fear & Greed. 243 00:12:41,520 --> 00:12:42,120 Matthew Kidman: Thanks, Sean. 244 00:12:42,720 --> 00:12:45,749 Sean Aylmer: That was Matthew Kidman from Centennial Asset Management. This is 245 00:12:45,750 --> 00:12:48,540 Sean Aylmer: the Fear & Greed business interview. Remember, this is general information 246 00:12:48,540 --> 00:12:50,968 Sean Aylmer: only and you should always seek professional advice before making 247 00:12:50,969 --> 00:12:54,090 Sean Aylmer: investment decisions. Join us every morning for the full episode 248 00:12:54,090 --> 00:12:56,340 Sean Aylmer: of Fear & Greed. Daily business news for people who make 249 00:12:56,340 --> 00:12:58,890 Sean Aylmer: their own decisions. I'm Sean Aylmer, enjoy your day.