Buy the MQG Dip

With the Dow down 981 points overnight we’re in for a big ASX drop Monday and possibly a bit of a correction over coming weeks. In terms of buy the dip opportunities MQG is at the top of my list.

My thesis is pretty simple - ie looking back over the past 10years (see below)...if you have a reasonable time horizon ....when has ‘buy the dip’ on MQG ever been a bad idea ?



I’ve been underweight MQG for a while now after taking some profits last year - wasn’t a great idea. I think given the weight of financial stocks on the ASX if you have an ASX based portfolio you really need a bank or two in the mix to keep it balanced up. I’ve held CBA before but I’m not convinced of their growth prospects. My only real interest is in MQG. It’s long term deal making record, its diversified international interests across multiple sectors, even its foray into retail banking make it a pretty good ongoing bet I think.

The retail banking move (and the ‘I bank with Macquarie’ campaign) is clearly targeted at high income earners who take out big mortgages .....they haven’t so much lent to the lower end of the market where rising interest rates will start causing problems....and their product is heavily digital. The retail banking arm is not a huge contributor as yet but they’ve taken a foothold and are taking market share and this branding has a bit of cache that I don’t think the other 4 big banks have. I like the chances of growing market share here.





Look at the potential market share growth here (and CBA has the most to lose) A lot of what Macquarie does is high risk/high return so this sort of solid business arm is a nice counter balance.

For interest, here are the latest broker recommendations on the big banks as provided by Marketindex.com.au

Note I have included prices at 02/04/22 as well as yesterday’s closing prices because this was when these broker recommendations were last updated.






Will be watching MQG with great interest these next few weeks.