The ASX is still trading at record highs, and reporting season is now in full swing. For investors, this is both a time of opportunity and risk. With so much noise in the market, it’s easy to feel overwhelmed.
At Under the Radar Report, we believe the key to success is having a clear strategy. In this blog, we share three essential principles to guide you through reporting season, so you can make better decisions for your portfolio.
ASX Trading at Record Highs
1. Own Quality Small Caps
One of the most powerful ways to grow your wealth is by owning quality small caps. It only takes one winning small cap to make a life-changing difference.
A friend of mine retired early because he invested in a small cap 20 years ago — today, that company is a household name. That’s the power of small caps: they’re idiosyncratic and not always tied to broader market swings.
👉 We recommend diversifying across 10–14 small cap stocks. This way, you give your portfolio a fighting chance for outperformance while reducing risk.
2. Take Profits on Your Big Winners
Momentum markets drive certain stocks higher — but what goes up without fundamentals often comes down hard.
We’ve recently taken profits on big names like CBA, Austal, and the ASX itself. Why? Because when these companies fail to deliver game-changing numbers, the market punishes them.
You don’t need to sell everything, but trimming positions in big winners and locking in gains is smart risk management.
3. Don’t Panic – Valuations Matter
The golden rule: Don’t panic. Yes, stocks like CSL have fallen 18–20% recently, but this isn’t a reason to sell out in fear.
Instead, remember that valuations matter. Expensive big caps get hit when they disappoint, while undervalued small caps often provide hidden opportunities. This is where Under the Radar Report’s Best Buys come in — we specialise in uncovering these overlooked gems.
Quick Recap
3 Principles for Reporting Season:
- Own quality small caps
- Take profits when you can
- Don’t panic – focus on value
Stay Calm, Stay Focused
Reporting season is a test of discipline. The investors who succeed are those who:
- Own quality small caps,
- Take profits when the market gives them, and
- Stay calm when volatility strikes.
This reporting season, don’t panic. Instead, focus on valuations and look for opportunities in the small cap space.
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