Sharemarket Game news

It was an interesting month for investors, with economic data across much of the world starting to soften and fears of a so-called ‘hard-landing’ beginning to abate [1].  

The inflationary conditions that have weighed on many growth stocks appear to be waning in most jurisdictions and many central banks (including the US Federal Reserve) look poised to cut rates, if they haven’t already started. 

That helped the US benchmark S&P 500 index rally 3.35% over the month. By 8 July, both the S&P 500 and the more technology-focused NASDAQ had reached record high closes. 

Australian markets also shared in that enthusiasm, albeit in a more subdued manner. Inflation data across the antipodean continent remained higher than expected and the RBA cautioned that the path back to target may be “slower than forecast” [2]. 

Subsequently, gains on the ASX were less than those notched up in the US, with the ASX 200 returning 0.84% for the month.

With elections in the UK and France recently wrapping up, and the US heading to the polls in just a few months, investors will be watching to see how looming leadership changes may affect their portfolios. 
 

‘Material’ gains for Game leader

At the top of the leader board this month is Shadunk, from Victoria, with a portfolio value of $65,052.92 – of which roughly $13,000 is held in cash.

The remaining money has been invested into only a handful of companies, two-thirds of which are in the materials sector. This high level of concentration places Shadunk at risk of significant losses if the market turns against materials.

It would also jeopardise their current position in the Game, given that the runner up, Queensland’s Bugidifino, is less than $1,000 behind with a portfolio value of $64,406.80.

Bugidifino’s portfolio is diversified across several key industries, including energy, consumer services, and semiconductors and related equipment. A significant portion of the portfolio (about $34,400) is also held in cash.

This could be a defensive play – cash has historically had very low volatility, meaning that while it typically doesn’t deliver large returns, it also rarely loses money for investors. Cash is also incredibly liquid, giving Bugidifino the option to quickly deploy their capital and take advantage of new opportunities later in the Game.

Nipping at Bugidifino’s heels is Western Australian player, Spyforce. 

Spyforce’s $63,673.01 portfolio is close to 100% invested and the most diversified in the top three, with holdings in the healthcare, consumer services, energy, materials, financial services, and media and entertainment sectors. 
 

Diversification driving success

The most improved player for June, MickB from NSW, made massive strides over the month, climbing from 5,659th place all the way to 919th – a massive leap by any measure.  

MickB has invested aggressively, holding only about $226 of their $52,433.05 portfolio in cash. The remaining sum has been invested across several industries, notably pharmaceuticals and biotechnology, materials and energy.

A little higher up the pack was this month’s University leader, the University of Melbourne’s Souled, with $58,735.54 in their portfolio. Much like many of June’s other stand-out players, Souled has taken positions in both the materials and semiconductor sectors, but augmented this with a cryptocurrency ETF – offering further diversification.

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[1] K Craig, ‘Monthly Market Review – June 2024 (Australia)’, J.P. Morgan, 3 July 2024, accessed 9 July 2024

[2] Reserve Bank of Australia, ‘Minutes of the Monetary Policy Meeting of the Reserve Bank Board’, 17 & 18 June 2024, accessed 9 July 2024
 

* We award a $500 prize for the most improved participant of the month. This will be calculated for the periods of:

• 7 March-4 April (prize 1) - Winner: Spyforce
• 5 April-2 May (prize 2) - Winner: Stan
• 3 May-6 June (prize 3) - Winner: Dematri79 
  
• 7 June-4 July (prize 4) - Winner: MickB
• 5 July-1 August, (prize 5), and
• 1 August–5 September (prize 6).