1 00:00:00,280 --> 00:00:02,120 Speaker 1: Twenty two after six. Time to have a quick look 2 00:00:02,120 --> 00:00:04,920 Speaker 1: at the market. Stephanie Bachelor from Milford Asset Managements with me. 3 00:00:05,000 --> 00:00:07,600 Speaker 2: Stephanie, Hello, good afternoon, Ryan. 4 00:00:07,800 --> 00:00:10,360 Speaker 1: There's a phenomenon in the financial markets. They call it 5 00:00:10,440 --> 00:00:13,520 Speaker 1: the Center Rally. Apparently happens every year. What is it? 6 00:00:14,800 --> 00:00:17,600 Speaker 2: Yeah, So the Center rally refers to the share market's 7 00:00:17,680 --> 00:00:21,239 Speaker 2: history of being really strong over the last five trading 8 00:00:21,280 --> 00:00:24,560 Speaker 2: sessions in December and the first two trading sessions in 9 00:00:24,600 --> 00:00:26,760 Speaker 2: the new year. If you go back and look at 10 00:00:26,880 --> 00:00:31,160 Speaker 2: every year since nineteen twenty eight, those seven trading sessions 11 00:00:31,160 --> 00:00:34,360 Speaker 2: have delivered positive returns almost eighty percent of the time, 12 00:00:34,800 --> 00:00:37,120 Speaker 2: and on average it's delivered a return of about one 13 00:00:37,120 --> 00:00:40,920 Speaker 2: point six percent. So it's a nice little gift from center. 14 00:00:41,560 --> 00:00:44,400 Speaker 1: Is this what causes it? Because is this more just 15 00:00:44,440 --> 00:00:47,640 Speaker 1: that most traders are actually away on holiday at this time. 16 00:00:48,760 --> 00:00:51,160 Speaker 2: Yeah, so that's part of it. It's not really known, 17 00:00:51,200 --> 00:00:53,840 Speaker 2: but there are a few theories. So one is that 18 00:00:54,040 --> 00:00:57,040 Speaker 2: it's a time when people get Christmas cash gifts or 19 00:00:57,360 --> 00:01:00,280 Speaker 2: work bonuses that they then want to put to work 20 00:01:00,280 --> 00:01:03,440 Speaker 2: in the markets. And because a lot of those professional investors, 21 00:01:03,480 --> 00:01:06,520 Speaker 2: as you mentioned, are off on holiday, there are fewer 22 00:01:06,560 --> 00:01:09,920 Speaker 2: trades happening, and so that can amplify share price movements. 23 00:01:10,520 --> 00:01:14,160 Speaker 2: Others kind of think it's just the general holiday optimism 24 00:01:14,319 --> 00:01:17,120 Speaker 2: that helps, or it could actually just be a bit 25 00:01:17,160 --> 00:01:21,200 Speaker 2: of a self fulfilling prophecy. Because people know about centa rally, 26 00:01:21,480 --> 00:01:23,920 Speaker 2: they invest in stocks to benefit from it, which in 27 00:01:23,920 --> 00:01:27,399 Speaker 2: turn pushes prices higher and kind of causes the center 28 00:01:27,480 --> 00:01:28,319 Speaker 2: rally in itself. 29 00:01:28,600 --> 00:01:31,679 Speaker 1: We actually can't discount, Stephanie that it might actually be 30 00:01:31,800 --> 00:01:32,800 Speaker 1: Santa at work. 31 00:01:35,040 --> 00:01:37,200 Speaker 2: True, I hadn't thought of their one. 32 00:01:37,720 --> 00:01:39,320 Speaker 1: Nice to learn it for some people then if they 33 00:01:39,360 --> 00:01:41,200 Speaker 1: want to jump in at this time of year, what 34 00:01:41,360 --> 00:01:43,760 Speaker 1: Let's take a look back at the year that was though, 35 00:01:44,000 --> 00:01:46,920 Speaker 1: how global markets ended up in general. Obviously, the US 36 00:01:46,920 --> 00:01:49,200 Speaker 1: has been up heaps, Japan's been up heaps. Tell us 37 00:01:49,200 --> 00:01:49,720 Speaker 1: the numbers. 38 00:01:50,560 --> 00:01:53,120 Speaker 2: Yeah, so it's been an incredibly strong year pretty much 39 00:01:53,160 --> 00:01:55,880 Speaker 2: all around. So, as you say, the US market has 40 00:01:55,880 --> 00:01:59,400 Speaker 2: been the strongest, up twenty seven percent, Japan also strong 41 00:01:59,600 --> 00:02:02,560 Speaker 2: eighteen percent, and actually China has done quite well since 42 00:02:02,600 --> 00:02:05,480 Speaker 2: the government announced stimulus measures, so that's kind of up 43 00:02:05,480 --> 00:02:08,120 Speaker 2: in the mid teens. And then we have New Zealand, Australia, 44 00:02:08,160 --> 00:02:12,080 Speaker 2: Europe all coming in around nine percent and the UK's 45 00:02:12,120 --> 00:02:14,880 Speaker 2: at seven percent, so pretty positive all round. 46 00:02:15,560 --> 00:02:17,480 Speaker 1: What have been some of the big winners? You know, 47 00:02:17,520 --> 00:02:19,200 Speaker 1: I'm to thinking tech stocks AI. 48 00:02:20,600 --> 00:02:23,519 Speaker 2: Yeah, So if we look at the MSCI World that's 49 00:02:23,639 --> 00:02:27,200 Speaker 2: the main global index, the best performing stock has been 50 00:02:27,200 --> 00:02:30,520 Speaker 2: a company called app Lovin, and it's up seven hundred 51 00:02:30,560 --> 00:02:33,760 Speaker 2: and sixty percent this year. So that's a technology company 52 00:02:33,760 --> 00:02:39,240 Speaker 2: that provides advertising solutions to gaming app developers. And then 53 00:02:39,280 --> 00:02:42,000 Speaker 2: the next one on the list is Palenteer, which is 54 00:02:42,160 --> 00:02:45,120 Speaker 2: up three hundred and forty percent, and again it's a 55 00:02:45,160 --> 00:02:49,480 Speaker 2: tech company. It offers software platforms to help companies better 56 00:02:49,520 --> 00:02:53,080 Speaker 2: analyze and utilize all the data that they that they have. 57 00:02:53,760 --> 00:02:57,079 Speaker 2: And both of these, as you say, they're considered AI stocks, 58 00:02:57,120 --> 00:03:00,440 Speaker 2: so that theme is very much alive and well. And 59 00:03:00,480 --> 00:03:04,000 Speaker 2: another name that people might recognize is robin Hood that's 60 00:03:04,040 --> 00:03:07,000 Speaker 2: coming in at number five, up two hundred and forty percent, 61 00:03:07,440 --> 00:03:10,360 Speaker 2: and that's the stock trading platform that became really popular 62 00:03:10,480 --> 00:03:12,040 Speaker 2: during COVID at. 63 00:03:11,960 --> 00:03:13,680 Speaker 1: Love and I hadn't heard of that one before. I'm 64 00:03:13,680 --> 00:03:16,960 Speaker 1: just googling it now, really interesting company. Let's talk about 65 00:03:16,960 --> 00:03:19,320 Speaker 1: the big bad boy of well, not bad boy, but 66 00:03:19,400 --> 00:03:22,720 Speaker 1: the big boy of the poster child of AI, in Vidia. 67 00:03:22,760 --> 00:03:24,840 Speaker 1: How have they performed this year, because obviously they've had 68 00:03:24,880 --> 00:03:27,720 Speaker 1: a stellar run over the last four to five years. 69 00:03:28,320 --> 00:03:30,880 Speaker 2: Yeah, they have, So it's it's still right up there. 70 00:03:31,040 --> 00:03:33,880 Speaker 2: It's number eight on the list, so a very healthy 71 00:03:34,440 --> 00:03:36,840 Speaker 2: up one hundred and seventy percent year to date, but 72 00:03:37,200 --> 00:03:40,000 Speaker 2: keep in mind that's after a very strong run, you know, 73 00:03:40,040 --> 00:03:43,520 Speaker 2: two hundred and forty percent last year, so very impressive 74 00:03:44,080 --> 00:03:45,360 Speaker 2: growth still for that one. 75 00:03:45,600 --> 00:03:49,080 Speaker 1: And then now where their market cap is now more 76 00:03:49,120 --> 00:03:52,520 Speaker 1: than the next five listed a top five listed companies 77 00:03:52,600 --> 00:03:57,000 Speaker 1: or something ridiculous like that, and the companies that haven't 78 00:03:57,000 --> 00:04:00,160 Speaker 1: done so well steff this year, yeah yea. 79 00:04:00,240 --> 00:04:03,600 Speaker 2: So in stark contrast to n video is actually another 80 00:04:03,680 --> 00:04:06,720 Speaker 2: semiconductor company called Intel, and it used to be the 81 00:04:06,840 --> 00:04:11,000 Speaker 2: largest computer chip maker, but it's more focused on legacy 82 00:04:11,320 --> 00:04:15,120 Speaker 2: PC chips rather than those kind of newer hother areas 83 00:04:15,160 --> 00:04:18,520 Speaker 2: of the market, which are GPUs and that's all about AI. 84 00:04:18,800 --> 00:04:22,240 Speaker 2: So shares of Intel are down about sixty percent this year. 85 00:04:22,839 --> 00:04:26,080 Speaker 2: And then another name people might remember is Maderna. So 86 00:04:26,520 --> 00:04:28,960 Speaker 2: it rolled out one of the first COVID vaccines back 87 00:04:28,960 --> 00:04:32,960 Speaker 2: in twenty twenty and shares did really well, but of course, 88 00:04:33,040 --> 00:04:36,320 Speaker 2: vaccine sales have fallen and it doesn't have enough of 89 00:04:36,360 --> 00:04:38,920 Speaker 2: the sort of other products or other vaccines to fill 90 00:04:38,960 --> 00:04:41,880 Speaker 2: the gap. So shares on this one are also down 91 00:04:41,920 --> 00:04:43,320 Speaker 2: about sixty percent this year. 92 00:04:43,680 --> 00:04:45,960 Speaker 1: All right, Stephanie, thank you for that. Stephanie Batcheler Milford 93 00:04:45,960 --> 00:04:48,400 Speaker 1: Asset Management with a market wrap. Just coming up twenty 94 00:04:48,440 --> 00:04:50,760 Speaker 1: seven minutes after six year on news Talk, said be 95 00:04:51,240 --> 00:04:53,159 Speaker 1: lots more to come. After the news, I'll tell you 96 00:04:53,160 --> 00:04:57,000 Speaker 1: about the hunting accident in the United States. It's making 97 00:04:57,040 --> 00:05:02,039 Speaker 1: headlines still. It's a shocking store. Also, the bridge from 98 00:05:02,040 --> 00:05:05,240 Speaker 1: Winyard Quarter will get you from Silo Park to Winyard Quarter. 99 00:05:05,360 --> 00:05:09,200 Speaker 1: They fixed it ten million dollars again two times now 100 00:05:09,279 --> 00:05:12,800 Speaker 1: it's it's broken after being fixed, so we'll get to 101 00:05:12,839 --> 00:05:16,280 Speaker 1: look at that as well. For more from Heather Duplessy 102 00:05:16,320 --> 00:05:19,159 Speaker 1: Allen Drive, listen live to News Talks. It'd be from 103 00:05:19,200 --> 00:05:22,839 Speaker 1: four pm weekdays, or follow the podcast on iHeartRadio.