08-May-2020: The following announcements have been released by MQG this morning:
At around $100/share, MQG look reasonable here. Not like the bargain prices we got down to during the GFC, but still decent levels. I don't consider their near-term upside to be AS good as other opportunities out there right now, so I don't hold them, but if I HAD to hold one Australian bank, Macquarie would be the one.
They derive more than 60% of their income from offshore now, and they are one of the world's largest asset managers. They are particularly big in global infrastructure asset management. The "Millionaires' Factory" is still evolving and finding new ways to make money. It's what they do. They are NOTHING like our big 4 banks, and don't have the same risk profile. There are certainly risks with MQG, but they are different risks. Their performance will be somewhat correlated with global sharemarket recoveries, particularly the US sharemarket. A deep global recession will hurt them. A global recovery will help them, and they'll outperform in that scenario.