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

The long-running US Government shut-down has come with plenty of economic ripple effects, but there's hopes it could come to an end.

The 41-day shutdown could last a few more days, but the the Senate passed legislation to attempt to reopen things.

Milford Asset Management expert Jeremy Hutton explained further.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:09):
You're listening to a podcast from news Talk zed be
follow this and our wide range of podcasts now on iHeartRadio.

Speaker 2 (00:16):
Jeremy Hutton, Little Fit Asset Management is with me, Hi, Jeremy.

Speaker 3 (00:20):
Good evening.

Speaker 1 (00:21):
Head up.

Speaker 3 (00:21):
Now.

Speaker 2 (00:21):
We spoke to Don Braid not long ago. Main freight
share price has reacted well to that result.

Speaker 3 (00:25):
Today I am yeah, mainfreight share price is up over
six percent today, So I reacted pretty well. And you know,
I did listen to Don just before and he did
mention that the first quarter was pretty tough for them,
but the second quarter was much improved and then you
know the outlook as well, what they commented on is
going to be stronger again still. So that was a
lot better than what the market was anticipating and it

(00:47):
hence reacted pretty well. Now there can be a little
bit of noise around main freight, you know, given it
as a very global business these days, and some of
the global news recently around you know, Tariff's global trade
shipping has been reasonably negative. But you know, the key
thing about mainfreight to remember is that you know, the
Australian and the New Zealand divisions are a real powerhouse

(01:07):
and you know, they continue to really drive the performance
of this business, and that was that was really strong again,
so investors would do well to remember that. But then
the other point that I found really interesting and he
mentioned this as well as on the local New Zealand data,
it's just you know, them seeing that their customer volumes
or same customer volumes are increasing versus last year. You know,
this is just a further indicator for me that you know,

(01:28):
the New Zealand recovery is underway and you know that
more activity is happening, which is really good.

Speaker 2 (01:33):
Yeah, it is good. Now on the US, chairman, we
have the share market recovering a little bit this week,
haven't we with the government shutdown potentially ending.

Speaker 3 (01:42):
Yeah, global stock markets were a bit nervous last week
and then they wobbled, and you know, tech and AI
stocks they were leading the declines. And it was a
little bit odd to me. You wouldn't think that AI
companies are the most impacted by you know, a US
government shut down. It would be other sectors. But you know,
sometimes the market does sort of tend to find the
narrative that that that suits the move. But I would

(02:03):
just say it was a general risk off move last
week and you know that's reversed about this week, and
you know gold that was up strongly again. This is
seen as now at risk on play by markets sort
of like bitcoin or you know, some of the racier
tech stocks. But there are still a few concerns out there,
you know, you know, some of those AI companies have
really high valuations. And then some of the data out

(02:25):
of the US has been a bit mixed. It has
been second tier data. But now with the shutdown ending,
we should get some of that high quality US data.
We can see how the economy is tracking there and
into the rest of the year.

Speaker 2 (02:38):
And is it normally the case that the performance of
markets is strong after a shutdown ending.

Speaker 3 (02:43):
Yeah, this is quite interesting. So you know, historical data
it showed that, you know, we've had forty years of
US government shutdowns and since they been ending, and the
SMP five hundred is usually up on average two and
a half percent after one month of a shutdown ending,
and then after three months it's up over five percent.
So you know, regionably good historical basis there, and then

(03:06):
you know, it could imply that the center is back
on heading into the end of this year.

Speaker 2 (03:11):
Good stuff, Hey, Thanks very much, Jeremy appreciate it. Jeremy Hutton,
Milford Asset Management.

Speaker 1 (03:15):
For more from News Talk st B, listen live on
air or online, and keep our shows with you wherever
you go with our podcasts on iHeartRadio