Latest / Best of Business / Jeremy Hutton: Milford Asset Management expert on the share market potentially recovering following the Govt shutdown

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Jeremy Hutton: Milford Asset Management expert on the share market potentially recovering following the Govt shutdown · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk zed be
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  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
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  Speaker 2: Jeremy Hutton, Little Fit Asset Management is with me, Hi, Jeremy.
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  Speaker 3: Good evening.
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  Speaker 1: Head up.
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  Speaker 3: Now.
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  Speaker 2: We spoke to Don Braid not long ago. Main freight
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  Speaker 2: share price has reacted well to that result.
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  Speaker 3: Today I am yeah, mainfreight share price is up over
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  Speaker 3: six percent today, So I reacted pretty well. And you know,
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  Speaker 3: I did listen to Don just before and he did
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  Speaker 3: mention that the first quarter was pretty tough for them,
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  Speaker 3: but the second quarter was much improved and then you
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  Speaker 3: know the outlook as well, what they commented on is
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  Speaker 3: going to be stronger again still. So that was a
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  Speaker 3: lot better than what the market was anticipating and it
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  Speaker 3: hence reacted pretty well. Now there can be a little
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  Speaker 3: bit of noise around main freight, you know, given it
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  Speaker 3: as a very global business these days, and some of
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  Speaker 3: the global news recently around you know, Tariff's global trade
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  Speaker 3: shipping has been reasonably negative. But you know, the key
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  Speaker 3: thing about mainfreight to remember is that you know, the
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  Speaker 3: Australian and the New Zealand divisions are a real powerhouse
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  Speaker 3: and you know, they continue to really drive the performance
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  Speaker 3: of this business, and that was that was really strong again,
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  Speaker 3: so investors would do well to remember that. But then
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  Speaker 3: the other point that I found really interesting and he
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  Speaker 3: mentioned this as well as on the local New Zealand data,
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  Speaker 3: it's just you know, them seeing that their customer volumes
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  Speaker 3: or same customer volumes are increasing versus last year. You know,
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  Speaker 3: this is just a further indicator for me that you know,
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  Speaker 3: the New Zealand recovery is underway and you know that
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  Speaker 3: more activity is happening, which is really good.
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  Speaker 2: Yeah, it is good. Now on the US, chairman, we
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  Speaker 2: have the share market recovering a little bit this week,
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  Speaker 2: haven't we with the government shutdown potentially ending.
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  Speaker 3: Yeah, global stock markets were a bit nervous last week
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  Speaker 3: and then they wobbled, and you know, tech and AI
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  Speaker 3: stocks they were leading the declines. And it was a
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  Speaker 3: little bit odd to me. You wouldn't think that AI
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  Speaker 3: companies are the most impacted by you know, a US
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  Speaker 3: government shut down. It would be other sectors. But you know,
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  Speaker 3: sometimes the market does sort of tend to find the
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  Speaker 3: narrative that that that suits the move. But I would
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  Speaker 3: just say it was a general risk off move last
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  Speaker 3: week and you know that's reversed about this week, and
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  Speaker 3: you know gold that was up strongly again. This is
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  Speaker 3: seen as now at risk on play by markets sort
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  Speaker 3: of like bitcoin or you know, some of the racier
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  Speaker 3: tech stocks. But there are still a few concerns out there,
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  Speaker 3: you know, you know, some of those AI companies have
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  Speaker 3: really high valuations. And then some of the data out
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  Speaker 3: of the US has been a bit mixed. It has
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  Speaker 3: been second tier data. But now with the shutdown ending,
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  Speaker 3: we should get some of that high quality US data.
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  Speaker 3: We can see how the economy is tracking there and
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  Speaker 3: into the rest of the year.
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  Speaker 2: And is it normally the case that the performance of
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  Speaker 2: markets is strong after a shutdown ending.
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  Speaker 3: Yeah, this is quite interesting. So you know, historical data
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  Speaker 3: it showed that, you know, we've had forty years of
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  Speaker 3: US government shutdowns and since they been ending, and the
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  Speaker 3: SMP five hundred is usually up on average two and
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  Speaker 3: a half percent after one month of a shutdown ending,
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  Speaker 3: and then after three months it's up over five percent.
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  Speaker 3: So you know, regionably good historical basis there, and then
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  Speaker 3: you know, it could imply that the center is back
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  Speaker 3: on heading into the end of this year.
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  Speaker 2: Good stuff, Hey, Thanks very much, Jeremy appreciate it. Jeremy Hutton,
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  Speaker 2: Milford Asset Management.
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