TMS Insights July 2025: The hunters, not the heavyweights
CBA is up 54% for the financial year on 2% earnings growth, and nobody can quite explain it. In this episode of TMS Insights, Ben and Jeremy close out the financial year and make the case for mid caps over the market's biggest names.
In this episode:
- Markets end the financial year at or near record highs despite the tariff sell-off and the Middle East, with rate cuts now flowing locally and abroad.
- The bank trade keeps feeding on itself while resources and CSL sit it out, which says more about the weight of money than about earnings.
- Xero makes a $4 billion play for Melio, a business created just six and a half years ago, to springboard its problem child US operation.
- Macquarie Technology builds its biggest ever data centre while the market looks the other way, the kind of capex phase Ben and Jeremy like to buy into.
- And Pinnacle's affiliate model keeps compounding, with the Royal London team's Lifecycle fund going from zero to $15 billion in a year.
Companies discussed: Commonwealth Bank (CBA), Xero (XRO), Macquarie Technology (MAQ), Pinnacle (PNI), Goodman Group (GMG), NextDC (NXT) and Washington H. Soul Pattinson (SOL).
If you'd like a conversation about how your portfolio is positioned, or a second opinion, our team is always happy to talk.
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