Sep 30, 2026 · 38 min
Rate hikes meet space bets and a portfolio overhaul
RBA raises rates again, Pimp my Portfolio with Henry Jennings & we review the community portfolio
The episode connects Australia’s higher-rate economy with ambitious space infrastructure and the practical challenge of building a simpler, less concentrated portfolio.
- 1The RBA lifted Australia’s cash rate to 4.6%, while the hosts debated inflation, employment, energy prices and alternatives to rate policy.
- 2Henry Jennings identified overlapping ETFs, US technology concentration and currency exposure as the central risks in Mackenzie’s portfolio.
- 3Codan became the community portfolio’s next holding after the committee rejected most alternatives and retained its existing positions.
Don't miss
The investment committee rejects several proposed additions before choosing Codan as the community portfolio’s next holding.
The brief
The RBA raised Australia’s cash rate to 4.6%, its highest level in 15 years, prompting debate over inflation, employment, energy prices and whether targeted taxes could work better.
SpaceX’s Starship reached orbit on its 14th flight, while Project Suncatcher raised a more speculative question: can cooling challenges be solved well enough to put AI computing in space?
Henry Jennings reviewed Mackenzie’s seven ETFs and 16 stocks, arguing that overlapping funds, heavy US technology exposure and currency risk made simplification more important than constant tinkering.
The community portfolio remained ahead of DHHF for the year despite recent declines, with Pro Medicus, Telix, Caterpillar, TSMC, Bitcoin and GE Vernova among the contributors.
After weighing Adrad, Moderna, Soul Patts, CRISPR Therapeutics and Grab, the committee selected Codan for its gold-detector business and growing drone communications exposure.
What was said on this episode
25 statements · 18 positive · 2 negative · 1 mixed · 4 neutral
Australian rate increases will not stop Alphabet’s data-centre spending.
“whether rates in Australia are 4.6%, 4.85%, or 5.1%, that's not going to stop Alphabet spending close to $200 billion trying to build data centres”
Listen at 3:52
NASA contracted SpaceX to return astronauts to the Moon.
“NASA have contracted SpaceX to return astronauts to the moon.”
Listen at 7:19
A $2 trillion-plus SpaceX valuation depends on Starship working successfully.
“if you think SpaceX is a $2 trillion company or more, Starship needs to work big time.”
Listen at 7:31
Starship commercialization could increase SpaceX’s valuation from $2 trillion to $10 trillion.
“this is the beginning of turning, as you said, SpaceX from a $2 trillion to a $10 trillion.”
Listen at 8:54
SpaceX will be the most debated stock during the next decade.
“SpaceX is going to be the most debated stock of the next decade, I imagine.”
Listen at 11:02
Mackenzie should simplify her portfolio holdings.
“maybe you should look to rationalize a little bit.”
Listen at 16:00
Diversifying away from US assets and individual stocks may improve Mackenzie’s portfolio.
“some diversification, perhaps away from the US and those individual names, might serve you better”
Listen at 19:42
Consolidating QQQ, IVV, and VUG into IVV would retain US-stock exposure through an Australian listing.
“the easiest thing to do would be consolidate those 3 into just IVV because you still get the same US stocks, but it's listed in Australia.”
Listen at 21:22
Currency-hedged products may be worthwhile for investors avoiding currency exposure.
“there are a lot of hedged products out there. And so they can be worthwhile looking at as well if you don't want to take that currency bet per se.”
Listen at 22:02
Investors might consider taking profits in Wesfarmers.
“So maybe it'd be worth taking some profits there.”
Listen at 23:03
Investors might consider taking profits in Macquarie Group.
“So, you know, whether you take some profits there”
Listen at 23:10
Tesla and SpaceX will eventually merge.
“Tesla. Oh, I've never been a fan, I must admit. But at some stage they're going to merge with SpaceX.”
Listen at 23:20
A single Rocket Lab launch failure could severely undermine the investment case.
“One fail on the launch pad and it's all over Red Rover.”
Listen at 24:18
Mackenzie should first consolidate ETFs and establish a stronger portfolio core.
“Focus on getting that core right and consolidating some of those ETFs there.”
Listen at 25:53
The community portfolio is outperforming its benchmark year to date.
“our benchmark is up 6.3% for the year. We are up 7.4% for the year after fees as well.”
Listen at 27:16
Moderna’s stock rose more than 200% after its skin-cancer trial announcement.
“The stock from that announcement is up over 200%.”
Listen at 29:58
Soul Patts is up 23% year to date, trades at 8 P/E, and holds substantial cash.
“it's up 23% year to date. It trades on an 8 PE and it's got a heap of cash.”
Listen at 30:23
CRISPR Therapeutics is interesting long term but unattractive for 2026.
“Long term, very interesting. Short term, 2026, not interested.”
Listen at 31:35
Grab is not currently a buy and has trended downward over twelve months.
“it's not a buy for me personally at the moment. Downward trend for the last 12 months.”
Listen at 32:00
Codan’s drone-communications business is performing very strongly.
“the other business that's going phenomenally well is drones.”
Listen at 32:56
Codan’s Gold Monster 2000 is its best detector released to date.
“The Gold Monster 2000 is the best detector that they have ever released.”
Listen at 33:50
Codan’s revenue growth accelerated over the past three years.
“the past 3 years, revenue has grown 21%, 23%, and 30%. So accelerating revenue growth.”
Listen at 34:22
Codan best fits the portfolio’s goal of outperforming through 2026.
“Of all of the companies we've gone through, it sort of fits the bill of getting to the end of 2026 the best.”
Listen at 35:14
The hosts decided to add Codan to the community portfolio.
“All right, well, let's do it.”
Listen at 35:32
The community portfolio will retain Bitcoin with a stop-loss order.
“Let's keep Bitcoin, but we have our, um, we have our stop loss on that.”
Listen at 35:44
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Featuring
Cathie Wood
Australia
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