Macro View, page-20

Hi All,

About 8 months ago I made some predictions and they have all played out.

1. On 20th Dec 2018 I called out the world economy would slow down at that interest rates would come down in post 36925357

US 10 Year yields went down per the below graph, Australian 10 year yields broke the 1% mark today. At the time of posting last year it was 2.35%.



2. on the 31 Dec 2018 and 12 Jan 2019 i called secular growth stocks to benefit from low interest rate environment in posts 37096035 and 36991257

Specifically calling out APT, APX and MP1. These stocks have returned 86%, 102% and 81.5% in just over 8 months. These returns are even after the corrections of the last 2 days.

So as you are wondering what to do with the current correction, my take is many of the above mentioned stocks have a very high valuation but in a low interest world if you can buy a secular growth stock for a good price then its a keeper.

NXT has barely gone up in the last 8 months but if it drops down further it would be a good buy. I am concerned about the sales especially in the Melbourne market and risks with large capital spend but the low interest rates are going to help give us buffer with repayments and potentially help justify a takeover from a US firm. I will be looking to buy in between $5.70 -$6.