As I’ve said before a decent pullback/correction/crash might be a long term positive for MFG.....so on one level I was a little disappointed when the market bounced back so quickly yesterday morning from Friday’s panic. But yesterday afternoon and now today indicate it might be a rocky road through to Christmas.
There is a lot of new money in the market, a lot of leveraged money, a lot of money that’s never experienced the gut wrenching feeling of watching 20% or 30% of their portfolio go up in smoke over a matter of weeks. This is the money that has been super critical of Hamish’s conservative strategies because they only know a market that goes up and up.
MFG would suffer with a correction - sure - the sp would drop with the market but the investors and funds that have played the market aggressively will suffer the most.
Once this is all washes through..... as investors sift through the ruins of all those funds that had been spruiking their post March 2020 success but have completely blown up ....many of these burnt investors will return to the tried and tested security of the Magellan funds....funds that will have held up pretty well compared to the carnage all around.
That’s when the FUM will enter a new growth phase....with the MFG sp obviously benefitting too.
Staying long MFG.
MFG Price at posting:
$33.16 Sentiment: Hold Disclosure: Held
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