Gold Rebounds while Tech Stages a Pullback. Taking some Profits on Tech
Paper Mandate Market & Portfolio Commentary | 3 July 2026
Fund Status:
Bal Start: $1,154,677
Bought None
Sold: SKS
Bal End: $1,167,252
Cash: $152,418
Overnight Markets
US markets were mixed overnight with the S&P 500 flat while the Nasdaq continued to fall, driven by semiconductors. Gold rebounded while oil dropped, the relationship we have come to expect recently. Small caps broadly sold-off as indicated by the Russell 2000. Healthcare has had a resurgence with both the Healthcare Equipment and Pharmaceutical subsectors rallying in concert. Some other news, OpenAI is in talks with the US government to get a stake in the company. US Non-Farm payrolls (an indicator of employment) came in softer than expected (57k vs 110k est). The US market will be closed July 3rd for Independence Day.
Australian Market
The ASX ended the day up 1.37% (and the week up +1.09%). Healthcare was the leading sector (+2.67%), with many of the household names catching a bid: CSL +3.45%, SIG +2.20%, PME +1.81%, RMD +4.03%, COH +3.83%. May be worthwhile doing some work on CSL or COH, which are at their lowest prices in 5+ years. Materials was the second leading sector today (+2.53%), in particular gold (XGD +7.64%). Good for us.
Portfolio Commentary
Our portfolio delivered +1.1%, slightly below the ASX 300 +1.37%. The primary driver of our performance was from our Materials exposure, particularly PC2 (+9.6%) and OBM (+7.7%) as spot gold pushed above US$4,100/oz. Our names in Financials also contributed to the portfolio with GDG (+9.1%), ZIP (+4.5%), and NWL (+4.0%) rallying nicely, while BVS added +4.52%.
Semiconductors and technology have seen a pullback. In reviewing the valuation of SKS, we have cut the position in half. At initiation the forward PE of SKS was around 20x. It is now 26x after a minor drawdown. Sell side consensus shows little upside from here. For risk management, we have taken profits. Cash sits at 13.1%, providing more flexibility as the US heads into earnings season. Their results will surely impact our market.
Investment Activity
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.