Why this ASX share bull market could run for longer

Fund manager Ben Griffiths thinks that this ASX share bull market could keep going for longer than some investors are expecting.

| More on:
asx share price represented by bear and bull colliding over man holding an umbrella

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The fund manager Ben Griffiths believes that the ASX share bull market we're currently seeing could go on longer than some investors are expecting.

Mr Griffiths published an article on Livewire Markets discussing his latest thoughts and some of the recent moves by the fund.

Why could the bull market go on longer for ASX shares?

The fund manager pointed out that cheap money and lots of liquidity are key reasons why the ASX share market is generating so much growth. But he commented that there are quite a few late cycle markers beginning to emerge. He pointed to the GameStop situation and the growth of special purpose acquisition companies (SPAC) as markers.

Those SPACs, which are outlawed in Australia, raised US$100 billion in the three months to March 2021 in the US, which was roughly equivalent to what was raised in the whole of 2020.

Discussing which phase of the market the ASX share market is in right now, Mr Griffiths said:

Stocks have shifted to Sir John Templeton's 4th quadrant market stage-Euphoria (Pessimism-Scepticism-Optimism-Euphoria). Problematic? Eventually but I contend that markets can remain this way for some time. It should be noted that credit markets (including CDS pricing) remain benign and the VIX futures curve remains in clear contango.

He went on to comment on the smaller end of the ASX share market:

Investors need to appreciate that the Small resources subset of stocks is at the early stages of an unfolding rally whilst their industrial brethren appear unstoppable and about 7% shy of their all-time highs.

Which ASX shares have the Eley Griffiths funds been buying and selling?

Pro Medicus Ltd (ASX: PME)

The healthcare technology business has been a recent addition to the portfolio.

Mr Griffiths acknowledged that it's an expensive stock but with a 20% compound annual growth rate of revenue over the next five years and earnings before interest and tax (EBIT) margins of around 60%, it was worth it to buy the business according to the fund manager.

Pentanet Ltd (ASX: 5GG)

Pentanet is a newly-listed Perth telecommunications business where Eley Griffiths participated in the IPO. The former iiNet CEO is the current chair.

Eley Griffiths pointed out that it's winning market share with high bandwidth fixed wireless technology called Terragraph. Capital is only employed when customers sign up. It also has a gaming opportunity with a partnership with NVIDIA, which will allow for multiple use of bandwidth within a single household and delivering high processing power to any laptop or standard PC.

Betmakers Technology Group Ltd (ASX: BET)

The fund manager sees a similar opportunity in Betmakers as Pointsbet Holdings Ltd (ASX: PBH).

Eley Griffiths believes that Betmakers has secured the perfect entry to sell the bookmaker and racing operator technology to US operators.

SportsTech is a business it acquired late last year, which has increased its presence to 36 states in the US and Mr Griffiths said that it's the pre-eminent operational partner for US racing bodies.

Netwealth Group Ltd (ASX: NWL)

The fintech ASX share is a business that the fund has sold out of. It still thinks the thesis is compelling with growing market share and dissatisfied customers at legacy rivals who have been underinvesting in their products.

However, the fintech is looking to reprice its back book and it's also looking to renegotiate its next deposit arrangement.

The fund manager wants to sit on the sidelines until there's clarity on the above issues. Eley Griffiths is hoping for a better entry point in the future.

Should you invest $1,000 in Cochlear Limited right now?

Before you buy Cochlear Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Cochlear Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pointsbet Holdings Ltd and Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Pointsbet Holdings Ltd, and Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Growth Shares

Turn $300 into significant wealth: 3 explosive ASX opportunities for Aussie investors

Analysts think these shares could be great picks for growth focused investors.

Read more »

A man looking at his laptop and thinking.
Growth Shares

What I'd buy with $2,000 on the ASX right now

Here are three options for investors to look at this month.

Read more »

Silhouette of CEO standing in conference room looking out at cityscape
Growth Shares

3 founder-led ASX 200 shares with serious long-term upside

Let's see what makes these shares top picks according to analysts.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Growth Shares

Where to invest $5,000 in ASX 200 shares in May

Analysts think that these shares could be top picks for Aussie investors next month.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Growth Shares

3 fantastic ASX growth shares to buy with $2,000 in May

Analysts think these shares would be top picks for growth investors right now.

Read more »

A man points at a paper as he holds an alarm clock.
Growth Shares

3 ASX 200 stocks to buy and hold forever without thinking twice

Here's why these shares could be great buy and hold options for investors.

Read more »

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.
Growth Shares

3 unstoppable ASX growth shares to buy and hold for the long term

Analysts have good things to say about these top stocks.

Read more »

A woman wearing dark clothing and sporting a few tattoos and piercings holds a phone and a takeaway coffee cup as she strolls under the Sydney Harbour Bridge which looms in the background.
Growth Shares

Top Australian stocks for a $7,000 investment today

These stocks are highly rated by analysts. Let's find out why.

Read more »