What Reporting Season Tells Us About 2027

This week, Filip Tortevski and Pedro Banales recap reporting season and reveal the key themes emerging across corporate Australia as we look towards 2027. From restructuring and cost-cutting to resources, healthcare, energy and a changing outlook for banks, they look at what the latest results are really telling investors about where the market could be heading next.

• 0:01Speaker 00

  This podcast is brought to you by Wealth Within, a global leader in stock market education. For more information on our courses, head over to wealthwithin.com.au. Please note that the information in this podcast should not be considered personal financial advice. Enjoy.

• 0:20Speaker 01

  Welcome back to another podcast. You're on with Phil and Pedro once again. And today we're going to do a quick recap on reporting season here in Australia and work out what the big themes were, what some companies are doing, what corporate Australia is doing, hint, they're repositioning for 2027. So we're going to break all that down, see which ones actually caught our interest and why they caught our interest and maybe what is to come in 2027, because it's looking quite positive for the moment. So I'll bring in Phil. How's it going?

• 0:55Speaker 02

  How are you, buddy? Yeah, very good recap earning season. Always nice to do.

• 1:00Speaker 01

  Yeah, that's right. There's a, it's been a good earning season. You know, I was just looking at the seasonality on our market and in August is usually, you know, pretty normal month, but man, it's up there with like our strongest months, but you know, April, July and November being our strongest months. It's right up there this time. So obviously reporting has been good. Yeah.

• 1:22Speaker 02

  Well, August was the month we made a new all time high, like the market finally broke to a new all time high after months of sideways action. So it's, it's a key month and what comes next is, is going to be very interesting because if, without giving away too much, if what we're seeing continues to happen and it works, I think it may mean that our market still hasn't had its best run. So yeah, it's interesting.

• 1:54Speaker 01

  Yeah, definitely. Definitely. This is kind of like the wind up before the pitch, right? And you can see it by the sideways action that we've had on our market for, you know, more than a year now. So it's a big wind up. Companies are just figuring out what's going on with tariffs, with the AI, with all these things, a resource shuffle, deglobalization, war in, in the Middle East. So a lot for them to figure out. And that's, that's actually reflected on some of their reports. So we'll get into it by, by looking at the big thing. So the big theme, as I alluded to, is that corporate Australia is repositioning for 2027. So the clearest theme is fix the business now, benefit later, which

• 2:36Speaker 01

  is great because that means, you know, potentially a good 2027. A number of major companies are absorbing restructuring costs, cutting headcount, using AI, of course, rationalizing operations, changing capital allocation and redirecting investment. So importantly, these aren't all businesses in trouble. There's several cases. So there's, there's management deliberately taking pain in 2026 to create a leaner and more focused business in 2027 and beyond. And I mean, the clearest one is CSL.

• 3:09Speaker 02

  Yeah, yeah, there's a lot of them. I mean, this, for me, this started about 12 months ago. The first, last earning season was when we saw the start of it, where a lot of businesses were, were cutting costs and implementing AI. And we're a year out, especially labour costs. A lot of big companies were, were, you know, becoming more efficient, dropping costs through labour, which is not great if you're, if you're a worker, but at the same time, the shoe market only cares about more profit, more profit. So that result meant the, the situation six months ago, when a lot of companies reported was that they beat expectation, not because they were earning better or the environment was great for, for

• 3:54Speaker 02

  business. It was because they were able to forecast much more efficiently. Now, to me, the big unknown is AI, because it's new. It's forced a lot of companies to restructure. A lot have chosen its adoption. I mean, naturally it makes sense. But it hasn't come without problems. I mean, you know, it, it has, because it's new, there's no precedent on how to do this thing right. We're all learning on, in the moment, even these big companies are learning in the moment, oh, adoption means this. Some companies out in the US adopted and realized, well, it's going to cost too much. Some are saying, well, we

• 4:38Speaker 02

  should have just kept our workers because they're, they're actually performing better than, than AI. So who gets it right is going to be crucial, but who does get it right? And who has a crack at it? Like you said, CSL, mate, you're talking share prices that are being battered and you're talking about massive companies that have the potential to, if they become what they were, get, steer the ship back on the right track, massive opportunities to, to profit from the stock.

• 5:11Speaker 01

  Yeah, absolutely. And it also, I think, goes down to whether their business can absorb AI or not. Like you've got ones that are more labour and you can't replicate that labour. You need that manual kind of, you know, like a mining company or something. Maybe they can make some process more efficient, but at the end of the day, you still need boots, you know, on the ground to kind of do the labour. But then you've got companies like tech companies or like CSL, for example, that maybe a lot of the, the kind of the analysis work or, you know, that, that kind of, the, the data work can all be automated. But I mean, the, the details was, and we've got the, the summary here. So CSL reported

• 5:53Speaker 01

  its first statutory loss since first listing in 1994. Look at that. So a US $2.6 billion net loss. But I think that that was kind of like a, a sigh of relief for the market. Like that's, the unknown is, is out of the way. That's it. They took the loss. They can move forward because it was driven by the $7.1 billion of impairments and 800 million of restructuring costs. Think about that for a second, like 800 million to restructure.

• 6:20Speaker 02

  Yeah. I mean, it's a big company. I mean, they pump out billions, but I, I just go and I look at, and I don't know if it's on the list, but I look at Guzman and Gomez, like pride expansion out in the US. It wasn't working. Forget about it. Bang, take the loss, move on, cut, cut the losses, almost like a stock, cut your losses short. And, and instantly the share price started rising. So, yeah. So it, it, it works because the market is not stupid. It is smart enough to understand that a, a business that is bleeding capital, if they fix that hole and markets are forward looking, they're not going to

• 7:04Speaker 02

  wait for reporting season to, to put capital towards that, that investment. Instantly they'll see, okay, we have a situation that was bleeding money. That situation has stopped. Is everything else right with the business? Well, that must mean moving forward, this result's going to be good. They're not going to wait until it reports six months down the track. They'll start buying that stock. And, and that's why these moments like this are the important moments. These earnings season, the important earnings season. Don't wait another six months where you go, oh, CSL is now reporting its best six month period for, in the last 10 years. Too late. The share price will, it's already taking off.

• 7:48Speaker 01

  It's factored in.

• 7:49Speaker 02

  So you need to, you need to almost, if you're going to play this game, where you find that the, the under value to some degree or, or companies that are turning the corner, restructuring, you need to find the moment, find when the restructure is happening and then make a call whether that restructure is going to work or not. That's your best opportunity to profit. And, and we've seen it with CSL, we've seen with a lot of them.

• 8:16Speaker 02

  I don't want to get into the companies because you're going to cover them, but, but we've seen enough to know that some of the best opportunities happen in this environment. And if you dig your head in the sand and just be all negative, you're going to miss some, or, or go, oh, the, the share price is down 70%, I'm going to forget about it. But why?

• 8:33Speaker 01

  Yeah, exactly. Why, Ian? And that, an important one, a good example of that is WeisTech. Now, they came out with very good results. I think that the market is just factoring in the, the worry about their debt because their debt is quite high because they had to acquire some other companies as well. But at the end of the day, I mean, it's, it's a company that has such high switching costs. It's like saying Microsoft, if shipping companies are using the WeisTechs, I think it's a something fleet, something wise or whatever the software is called. If they're using that software to switch that software, it takes a lot. And

• 9:16Speaker 01

  basically you're, you're breaking away from the whole logistics system around the world. So I mean, a company like that is, that's, that's a moat.

• 9:25Speaker 02

  Yeah, yeah. And, and I, I recently met someone that, at a, a party that we went to, one of the TV places. And we're meeting all the people, the guests, there was guests and people that were running their own shows and all that. So, and I met one lady that transfers high end art. So she works in logistics and she moves art from place to place, has a buyer and, you know, takes it around the world. They use, they use WeisTech. She said, WeisTech is the best in the business. There's no one like it.

• 9:59Speaker 01

  Yep.

• 10:01Speaker 02

  And that got me thinking, okay, well, if they really are the best in the business, and if their share price.

• 10:12Speaker 02

  Has been destroyed, not because of operational issues, um which we know it it got hurt back because some things that happened with management, we know it got hurt recently because the A triple C. That I think is the big lingering thing and markets, the reality of markets and stocks is they operate on fear and greed. Um value sits somewhere in the middle as the magnet, but they will oftentimes blast well past value. Um both on the up and on the downside, driven by sentiment. Uh and then you ask why? What's driving this? Why? And you break it down in in Weistech scenario.

• 10:51Speaker 02

  We know why it's, you know, C E O loves a good time.

• 10:57Speaker 01

  Yeah, bit bit too good.

• 10:58Speaker 02

  The wrong kind, the wrong kind of good time. Um.

• 11:01Speaker 01

  He he even said, look, I I won't even run the business, guys. I'll just sit on the board. Uh but still not good enough. They're like, no, mate, you can still dip your something into something. And make trouble for the company. So, yeah, stay away, basically. Yeah. But we'll see what happens with that one. Uh look, another one that that caught my eye is I D P education. Uh that's ticket code, you know, um actually, the ticket code is not the same as uh as as what it says. So I D P.

• 11:31Speaker 02

  I think it's I E L.

• 11:33Speaker 01

  Um I E L, it is, yes. I E L is the ticket code for that one. If you guys want to look at the chart. But it's cutting approximately twelve hundred and fifty jobs, uh reducing I E L T S test venues from roughly fifteen hundred to fewer than six hundred. Um in twenty twenty seven, it adjusted its EBIT uh to expect to fall from ninety five to a hundred and fifteen million from a hundred and twenty two. So it's quite a a drop for for their forecast. But management is restructuring around what it believes is permanently smaller international education market. So they're they're looking that the education market is actually shrinking education internationally.

• 12:14Speaker 01

  So it's interesting because that could possibly be a result of of A I disruption. Whenever anybody wants to know something these days, you you just ask A I and um. I mean, why would you get a um, you know, an education? I don't know what these guys offer, but.

• 12:34Speaker 02

  I mean, you you, look, you still need an education for a qualification. I think what it may also be is, I think about the world right now and are we still getting?

• 12:48Speaker 02

  You know, are we are we getting the movement that we used to get around the world? You know, is it as easy to get a visa? As it was before the the latest situation like, you know, um.

• 13:01Speaker 01

  I know that the our government is cutting the the um, um, the, what's it called? The education visas quite a bit as well. So that might have something to do with it. But um, yeah, I mean, that's that's interesting in in itself. Uh.

• 13:15Speaker 02

  It's a start in the right direction, you know. If you if you're expected to have this much of losses now, you've cut it by ten, fifteen percent, twenty percent. What happens if it goes even better than that in the market and reporting time, this thing's fifty percent better than expected loss? That's going to get buyers' interest.

• 13:35Speaker 01

  Yeah, yep, exactly. Yeah, when the expectations shift. Um and it's interesting because we're in the education um kind of sphere as well, you know, with our share trading. And we're seeing a good influx of of people wanting to to learn how to to trade. And I think that that's a a a way that people are looking to replace that that income because they're worried about what's happening with A I. So I think that we're in a good space um in in that sense anyway. So um the next one is uh Coles. So Coles is another interesting example. It expects F F Y twenty twenty seven capital expenditure to around one point five billion, up from one point four. So they're restructuring uh spending heavily on restructuring.

• 14:20Speaker 01

  Uh and it's a sign that management believes that the business needs to be repositioned before the next phase of growth. That's another one. That's that's, you know, really restructuring. So but the one that I wanted to get to is Woodside. Because, as you know, big fan of Woodside. I I I do believe in the in the future prospects. So Woodside has abandoned its long term emissions target and a five billion clean energy investment plan through twenty thirty. So it's also reviewing its two point three five billion bone ammonia project and targeting approximately three hundred and fifty million of future cost reductions. So they're essentially saying, we're going to allocate capital towards the assets where we believe the returns are better, and and that's gas.

• 15:01Speaker 01

  Uh and and they've got good gas projects coming online on on on in twenty twenty seven. So it seems like, all in all, there's there's certain sectors that are benefiting from all this restructuring and and things like that. B H P is one that I've seen on the news as well.

• 15:18Speaker 02

  And I mean, and and that's the thing, right? I I think more than anything, what it's it's proven is that these big Australian companies, we we got good, good people. We got good companies, we were good management. It it's building a level of trust in this Australian stock market to say that, you know what, your money's relatively safe here because really, you talk about B H P and Rio. They were iron ore plays.

• 15:46Speaker 02

  Traditionally iron ore. Um but they recognized and pivoted when the time required them for them to pivot B H P into copper. I mean, it makes a bit, I think it's, I don't know, don't quote me on this, but it's something like forty percent of of of its revenue now comes from copper or more, actually. Um and that's, you know, that's a relatively new uh. Oh, sorry, copper's its biggest earnings contributor for the first time. There you go. I just saw the numbers. Um so that kind of pivot, uh Rio pivoting to lithium, when lithium was in the dog in the dog crap uh at all time lows.

• 16:27Speaker 02

  These aren't weak moves. The these are companies always looking forward. And on the flip side, you look at something like Fortescue Metals, which is trying to get it right and and, you know, not having the best time of it. But um because they're heavily in the renewables um push as well. So uh, yeah, I think it just shows that even a C S L, things that start, don't go in their way for shareholders, mate, they're not waiting. It took a year, in one year, it started to get punished, boom, let's do something about it. Bang, go and spend a ton of money on restructuring and and getting things right. Um we we have strong, strong companies here. I think that's the big takeaway for me.

• 17:10Speaker 02

  And you can, you can trust in in in the companies on the A S X. Now, that doesn't mean that you should just buy and hold forever. I'm not saying that at all. Um they're going to be crashes and and stocks will dump much more than than you you um may know if if it's your first time going through a crash. So I'm not saying that at all, but I'm just saying uh they can turn things around very quickly and that's that's positive.

• 17:37Speaker 01

  Yeah, yep, exactly. The ones that are that are cashed up especially. Um and and it just shows that the the big end of town is the one that that drives our market first. So it's always the big players that start to drive it. And then you slowly start to see the um the mid caps and the small caps coming in. So they're probably ones to watch as well coming into twenty twenty seven, isn't it? You know, it's um, we've seen B H P, Rio, uh C S L, like you mentioned, uh the banks, uh they're they're pulling back now. Um so that's actually one story that was a little bit weak uh in in this reporting season. So major banks haven't shown the same operating momentum as resource and healthcare.

• 18:17Speaker 01

  Uh this because of, you know, slowing slowing mortgage demand, intense competition, housing weakness. I I've actually seen a lot of, talking about that intense competition, they're they're offering crazy things across the board. Now is a good time for people to start looking around for for refinancing because they're trying to get business. They've seen such a slowdown in new loans that they're offering like, I've seen uh ones uh no um no mortgage insurance. Uh ones that will lend you ninety five percent instead of ninety. Uh there there's ones, you know, offering different interest rates, of course. So we're going into those mortgage wars now.

• 18:58Speaker 02

  I think the problem with the banks more than anything right now is because the uh like you look at something like Commonwealth Bank that reported across the board in all its different segments, it showed growth. Um mortgage stress on ninety day areas, still normal. What the problem with the banks is their share prices are too high relative to to, they they ran too hard relative to the pace of of banks uh traditional growth. And that's the problem because they started acting like tech stocks in twenty twenty five, how fast they were going up. Um and that's not normal for a bank, especially a a bank that was not, you know, invested in that in that space.

• 19:42Speaker 02

  So then it was just the traditional bank. And so, oh, if you're talking about any sector where A I can dramatically um make these things more efficient, mate, the banking sector has all the hallmarks of of of a spot where A I can make this way more efficient and way more profitable. And they've already, they've already been, you know, cutting um labour. So.

• 20:09Speaker 02

  You're right. I agree in that the major portion of their business is what the market is now fearful of. Somewhat moving forward is that mortgage. The new mortgage rates were down fifteen percent, new mortgage demand or loans. But at the same time.

• 20:32Speaker 02

  I don't think we'll be having this same discussion. If the share prices of the banks were, let's just say, not where they were today. If that were down another thirty, forty percent. And just back on that slower rate of rise. I don't think we'd be seeing question marks. The reason we're seeing question marks because the share prices are way too high. Relative to what the future looks like. And that's. That's where people are getting a bit hairy. I don't think the banks are broken.

• 21:02Speaker 01

  Yeah, I know what you mean. Definitely. They've just gone off that their momentum. They've just, they're just coming back to trend. They're traditionally more income plays rather than growth plays.

• 21:14Speaker 02

  I mean, they're growth. Like CBA has gone up over history. They are, but not as fast as it happened. Like it doubled in a year. The share price doubled in a year. Like, are you normal? It's been around for however forty, fifty years and then in a year it doubles? Come on. That alone should have got you thinking, something's not right here.

• 21:33Speaker 01

  Yeah, yeah, exactly. Yeah, totally right. And if you knew how to read a chart as well, you'd be able to see that topping pattern. I mean, I remember us calling it in one of our shows with, we're saying, mate. This, and I think there was hedge funds that were buying it and everybody was talking about CBA, CBA and we're like, hmm, looking a bit toppy.

• 21:54Speaker 02

  That was a problem. We saw a big influx of US.

• 21:58Speaker 01

  That's right. US money was coming in.

• 22:00Speaker 02

  US money and it's like, what do you buy? Oh, let's, let's get their most popular, you know, bank. It's strong, solid business pension money. But yeah, not when you see the share price like that. Sorry, mate.

• 22:12Speaker 01

  Yeah.

• 22:13Speaker 02

  Now it's not attractive anymore.

• 22:15Speaker 01

  Exactly, exactly. And it's all about the sector cycling at the end of the day, I guess. And. You know, talking about sectors, we've got a bit of a scoreboard here that, you know, from our reporting. So. Obviously, the standout has been the materials. They've got strong earnings and cash flow. So they are cashed up. They've reported good. Twenty twenty seven positioning looks very positive. So. Go the materials, still going strong twenty twenty seven. Energy. Strong prices and capital discipline. Of course, they've seen stronger prices because of oil.

• 22:52Speaker 02

  I'll just add on the materials. Keep one eye out on what's happening out in the US with the AI demand. Like Nvidia just reported again, a crazy double.

• 23:02Speaker 02

  Like, yeah, as long as that demand's there, as long as that demand's there and as long as the spend is still there. Materials like copper and the rest of them, they're going to be, we're BHPs in copper especially. They're going to be in demand. So keep one eye on. The AI story, the demand for AI, whether it's, you know, slowing down, because that's going to give you an indication of. Of where materials may get a bit hairy, but. Until then, it does not look like it's slowing down. I mean, I think Nvidia says something like. We see demand going up to twenty thirty at least, like strong demand. It's another four years of this.

• 23:37Speaker 01

  There you go. So data centers getting built left, right and center, digital infrastructure.

• 23:43Speaker 02

  On your nature strip, I reckon soon I'll be building data centers at this rate.

• 23:48Speaker 01

  You might be able to lease out your roof for some data centers.

• 23:50Speaker 02

  For some data centers, yeah.

• 23:53Speaker 01

  Just under the solar panels.

• 23:54Speaker 02

  You end up having three eyeballs in four years. That's all good.

• 23:58Speaker 01

  Exactly.

• 24:00Speaker 01

  Should be all right, but we'll have, you know, we'll be able to ask it questions whenever we want, I guess.

• 24:04Speaker 02

  Mate, I saw a very good GIF or a meme today. And it was a picture of Sarah Connor from Terminator, you know, when she was the mom of John Connor and she was, you know, the. The scene where she's smoking a cigarette in the psych ward?

• 24:20Speaker 01

  Oh, yes. Yeah.

• 24:22Speaker 02

  And the comment.

• 24:23Speaker 01

  Number two.

• 24:23Speaker 02

  Yeah. And the comments underneath said, they put this lady in a psych ward by, by spreading. By talking about the dangers of AI and, and what was it? AI and data centers.

• 24:37Speaker 01

  Why?

• 24:38Speaker 02

  Because, because in Terminator, that's what she's, you know.

• 24:41Speaker 01

  Oh, yeah, that's, yeah, of course. Yes, she's trying to warn everyone.

• 24:44Speaker 02

  Yeah, she's trying to warn her. I said, don't forget, they put this lady in a psych ward and it starts to say like, hey, and she was right, you know? So it was pretty funny.

• 24:55Speaker 01

  Well, you know, it's funny in that movie because when it starts off that first scene where the Terminators are going around, I think. The date is twenty twenty six. That's the date. Yeah. Have a look at it again. That's the date that they projected to that, you know, the Terminators are walking around and crushing skulls.

• 25:14Speaker 02

  Oh, no.

• 25:15Speaker 01

  It just goes to show like that back in the eighties, they thought that twenty twenty six was going to be. Something totally different.

• 25:22Speaker 02

  Well, they're not far off. Just talking about robots. I mean, that's actually more scary than, than anything that they got it so close.

• 25:30Speaker 01

  Yeah, well, I just saw in China, they had the first robot Olympics. There was robots running around and karate.

• 25:37Speaker 02

  And then they had to get pulled, take one off on a stretcher because he hurt himself doing the sprinting.

• 25:42Speaker 01

  Is that the one then with the sparks?

• 25:45Speaker 02

  Yeah, no, well, he fell because when they were sprinting, they went into like this soft patch thing and he, and he went into the wall. And then these, these blokes rock up with the stretcher. And they put the robot on the stretcher. I'm thinking, you guys are going to be taking a piss, surely. There's some kind of weird humor.

• 26:02Speaker 01

  That's crazy. That's what we're heading to.

• 26:06Speaker 02

  I hope not.

• 26:08Speaker 01

  Well, we're going to need a lot more copper for that. At least BHP will be, will be the winner. But the next one down on the leaderboard is energy. Obviously, they, they were up because of. Strong oil and gas and things like that. Good capital discipline. It looks positive for twenty twenty six. So energy tick. Healthcare is the next one. So there are a lot of restructuring going around in healthcare. I mean, we saw Ramsey Healthcare up like fifteen percent today. So again, the massive growth going into the healthcare stocks and good earnings recovery coming in. So increasingly interesting is the consensus for twenty twenty seven. So that's the underdog. Keep an eye on that one. Not so much. The underdog, too much underdog now because it's, it's starting to move.

• 26:52Speaker 01

  But definitely want to keep an eye on. Technology, strong structural growth, but valuation sensitive. So it's mixed. You've got to be really selective with, with technology and. Obviously, you know, Ysec is a good example of that. Consumer staples, resilient, but. A lot of restructuring and investment heavy in that sense. So they're kind of still going through their restructuring. So that's a little bit mixed. So just be cautious on staples. Discretionary, there's weak spending and margins. So the margins are being squeezed. So be a little bit cautious with that. I know Woolworths came out with their, their report today.

• 27:34Speaker 01

  And I haven't actually had a chance to, to read it, but it looks like from the chart. Today it was down. So it's a little bit mixed. It's looking interesting on the chart though. It's looking like it's holding up above that thirty nine dollars. And I know Coles is doing quite well on the chart, but it looks like, you know, don't expect too much from discretionary anyway. Financials cautious, but I don't know. I'd like, I'd like to get your thoughts because you were talking about before. That they're coming back to trend. Do you think that they're there yet? Or do you think they've still got a bit more to go?

• 28:10Speaker 02

  Well, when I look at the sector. So I'm looking at the, the financial sector from two thousand and one. Now. From two thousand and one to two thousand and three. The market went sideways, did nothing. From two thousand and three to two thousand and seven was the biggest.

• 28:33Speaker 02

  Strongest run. Then we get the crash. And then literally from two thousand and nine to two thousand and twenty four. Albeit we had moves up and down, we never broke the range of seven thousand on the high and four thousand on the low. So. It, it shows you that the banks were. Tied into the business cycle, which is what you would see, you know, up, down, up, down, almost like a cyclical type stock, not necessarily heavy, heavy growth.

• 29:04Speaker 02

  It's all gone crazy since two thousand and twenty three. So I would think. From a technical lens.

• 29:14Speaker 02

  I would expect, I would not be surprised. Or let's just say, where prices gravitated the most over the last twenty years is around that six thousand level. Six to seven thousand level for the banks. So when you look at them today, up in the ten thousand, I still think they're very, very expensive for that.

• 29:36Speaker 02

  A push back down to eight, seven and a half. I would say the banks become pretty attractive, but that means it's a pretty decent correction. So. They're going to have to do something extraordinary. To continue this rate of rise because they're being priced in, I mean, not, not since November. They've stalled again. They're going sideways.

• 29:57Speaker 02

  But that run from January, they were priced in bloody like a tech stock, like an Nvidia. And so.

• 30:05Speaker 02

  That's never lasted. Throughout history. It's never lasted. It's always come back. So. When I look at the banking sector, I think from that perspective first. I would be more negative than positive.

• 30:20Speaker 02

  I would treat the opportunities when they come potentially, but I would look at it from a short term trading lens. And always having my button, my finger on the button close to the cell. I wouldn't. Be saying, I'm happy to write a pullback in the financials at this level. No way.

• 30:34Speaker 01

  Hmm, yeah, yeah, I agree. I think it needs to hold that eight thousand eight hundred for that sideways pattern. It'll also come back to that longer term trend from that COVID low. If it does. It breaks that, then yeah, that. Round to that seven thousand will be a good support. But yeah, like you said, it's like another twenty percent down. And for our banks to go down that much.

• 30:59Speaker 01

  But I mean, according to this, it says, you know, be cautious because of the, you know, they've got mature earnings. We really need to see the real estate sector pick up and more mortgage rates to come on. And then the, the last one is that we've got on the leaderboard, you know, education. It's got a bit of a structural disruption there just because of ID, IDP, but that's not one of the big sectors in our market anyway. So. So I mean, what you get out of this, it's not a universal bullish twenty twenty seven. It is going to be sector specific. There's some sectors that are still sorting it out. There's some sectors that have already got this. Stuffed together in twenty twenty six and now ready for that growth.

• 31:43Speaker 01

  So it's going to be a bit, bit of a mixed bag. You still have to be selective. And I have to say, I have to correct myself. Terminator two judgment day is actually twenty twenty nine, not twenty twenty six. I had to, it was in my brain.

• 31:55Speaker 02

  We've still got time.

• 31:56Speaker 01

  We've still got three years.

• 31:58Speaker 02

  Which is probably exactly when they're going to release the robots.

• 32:02Speaker 01

  Yeah, exactly. It's looking like that, isn't it? I mean, if twenty twenty seven is that good for, for the materials, then they'll have enough materials to make the robots anyway. So.

• 32:12Speaker 02

  Yeah.

• 32:13Speaker 01

  Interesting times, interesting times. All right. Well, it's been a interesting podcast, Phil, as always. Thank you.

• 32:21Speaker 02

  No worries. Thank you, mate.

• 32:23Speaker 01

  Remember to give us a five star review if you enjoyed the content. As always, we're looking forward to the next one and bye for now. See you next time.

• 32:32Speaker 00

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