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Speaker 1: Just to remind you, we're going to be chatting to

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Speaker 1: Infrastructure New Zealand after the news after half pass because

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Speaker 1: they've obviously been barred from the budget day lock up

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Speaker 1: as well. Right now though, Jeremy Hutton Milford Acid Management

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Speaker 1: is with us. Hey, Jeremy, good evening hither So we've

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Speaker 1: seen a complete round tripe and performance on the inzt

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Speaker 1: X and various global markets since Trump's liberation Day. How's

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Speaker 1: the INSIDEX market been going?

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Speaker 2: Yeah, the INSIDEX has been going relatively well. It is

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Speaker 2: widely seen as a defensive market given the nature of

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Speaker 2: some of our larger companies that make up the index.

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Speaker 2: But starting with some numbers, so post Liberation Day on

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Speaker 2: April to second, the INSIDEX fell about four and a

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Speaker 2: half percent over the five days where the market's sold

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Speaker 2: off heavily. The SMP and the tech heavy Nasdaq fell

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Speaker 2: around twelve percent over the same period, So New Zealand

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Speaker 2: did show some outperformance on the downside there. But as

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Speaker 2: you said before, they have done a full round trip

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Speaker 2: and markets have clawed back all of these losses and

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Speaker 2: some games. So the Nasdaq that's now up eight percent

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Speaker 2: since liberation Day, the SMP four percent, so those markets

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Speaker 2: have completely shrugged the tariffs off, and the nz X

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Speaker 2: too has had a good rebound. It's up four percent,

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Speaker 2: so it has been keeping up a little bit on

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Speaker 2: the upside too. But you know, it's fair to say

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Speaker 2: that the market assumptions at the moment are pretty favorable,

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Speaker 2: continuing sort of expecting the continuing of easing of trade

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Speaker 2: tensions and no slower global growth, which maybe is a

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Speaker 2: little bit tad ambitious at this point.

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Speaker 1: I mean huge turnarounds. You which is the point that

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Speaker 1: you've made in short short periods of time. Can you

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Speaker 1: actually pick where the turning points are?

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Speaker 2: Yeah, It's extremely difficult, and to me, it just continues

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Speaker 2: to show how tricky it is trying to time the market,

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Speaker 2: especially given the volatility and some of the speeds of

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Speaker 2: the moves that we're seeing, and sentiment can turn really

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Speaker 2: bullish to max bearish in a very short space of time,

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Speaker 2: and Trump holding daily press conferences doesn't help with this.

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Speaker 2: But I think the best strategy as an investor is

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Speaker 2: just to think about your long term goals and try

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Speaker 2: and stick to that plan and chopping markets, try not

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Speaker 2: to panic or get any FOMO in both the buy

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Speaker 2: and the seuside.

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Speaker 1: Yeah, and we're talking about sale. When the market is

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Speaker 1: having to sell off, what companies on the interetex do

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Speaker 1: investors tend to favor.

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Speaker 2: Yeah, and this turmoil and where markets are falling, investors

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Speaker 2: do tend to shift to easily predictable businesses and solid sectors.

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Speaker 2: And these are examples like consumer staples and food and

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Speaker 2: utilities and the injet X has a few good examples.

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Speaker 2: So our own relatively robust gent tailor electricity sector that

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Speaker 2: gets a lot of interest when markets tend to sell off.

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Speaker 2: And then also high quality growth companies that growing every

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Speaker 2: year like EBOS that gets a bit of a flight

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Speaker 2: to safety two and Spark traditionally would have been in

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Speaker 2: that camp as well, but given they're having a few

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Speaker 2: of their own specific issues, means that investors are avoiding

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Speaker 2: that name for now.

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Speaker 1: And just very quickly tell me. In May, so far

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Speaker 1: we've seen a bit of a rally. What companies have

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Speaker 1: been fitted here.

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Speaker 2: Yeah, some of the terriff exposed companies as you would imagine,

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Speaker 2: so main freight that's up twenty three percent on that

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Speaker 2: normalization of trade. We've got Infra till you know, they

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Speaker 2: got hit on the tech sell off, so they're up

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Speaker 2: eleven percent. And then cyclical companies they tend to perform

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Speaker 2: well in bill markets generally, and in New Zealand we've

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Speaker 2: got the retirement names like Ryman and Somerset and also

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Speaker 2: a bit of Fletcher Building too, so they've all had

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Speaker 2: double digit gains this month so far. But yeah, the

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Speaker 2: volatility makes investor's jobs really tricky, but it does make

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Speaker 2: following the markets super interesting at the moment.

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Speaker 1: Thank you so much, Jeremy really appreciated. Jeremy Hutton of

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Speaker 1: Milford Acid Management. For more from Hither Duplessy Allen Drive,

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