FNArena’s Weekly Insights – June 30 2025
In today’s Weekly Insights:
-Dicker Data; Megatrends Without Covid-Lockdowns
-Ask FNArena
By Rudi Filapek-Vandyck, Editor
This week marks the end of fiscal 2025 (Monday June 30th) and yet another year of double digit return for the local market (as measured by the ASX200).
Below the surface, another regularly recurring phenomenon has equally come to its end; tax loss selling.
It’s a real thing, every year around late-May until the final day of June, but precisely how and where the impact is felt is very much determined by general market trends and conditions.
This year, the strong market performance has very much relied upon large cap Financials, with the banks in pole position, Growth stocks and the Technology sector, with miners (outside of gold), energy companies, staples and healthcare the notable laggards.
Equally important: small cap stocks without positive momentum remain in the unloved basket.
The share market can be as re-assuring and comforting as it can be frustrating when holding small cap laggards that keep on lagging.
Guess which stocks investors have been selling out from to reduce their tax liability? My guess is small cap non-performers have been the number one choice to be tossed overboard this year.
That said, it’s not by definition a clear cut proposition as some have also experienced bad news over the period and some share prices have started to recover already towards the end of the month (June).
The FNArena-Vested Equities All-Weather Model Portfolio owns three stocks that might well have been impacted over the weeks past with returns negative against a firm uptrend for the index and the portfolio overall; CSL ((CSL)), Woolworths Group ((WOW)), and Dicker Data ((DDR)).
All three have been held back for different reasons; all three are kept in portfolio ahead of better times to surely follow. The worst performer is Dicker Data. As a smaller cap proposition, this company is most likely the least well-known among investors.
Time for a general review and re-assessment.
