Technology and AI have remained at the centre of investor attention, but sentiment swung sharply in the March quarter as concerns about capital expenditure and AI-related disruption weighed on share prices. Yet beneath the noise, the underlying results tell a very different story: the four largest US technology companies lifted operating cash flow by 27% last year, revenues grew strongly across most sectors, and the semiconductor industry produced another standout result.

The quarter was not without its shocks. The Iran war and a renewed energy price surge drove bond yields meaningfully higher, the RBA delivered two successive rate hikes, and listed property fell 16.6% as the outlook for interest rates repriced. Global equities finished the quarter down 6.1% and the Australian market down 2.7%, though both remain firmly positive over twelve months.

For long-term investors, these dislocations have created opportunities we think are worth acting on. Heavy falls in high-quality software names such as Intuit, WiseTech and Xero have opened the door to businesses we previously considered too expensive, while A-REITs now trade below net tangible asset value for the first time in some years. In our 2026 Q1 commentary, we share our perspective on these crosscurrents and outline where we’ve been adding – and trimming – exposure.

Please contact our team for further information of PPMs service offering at ppm@ppmfunds.com or 02 8256 3777.

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