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Some parts of the market are hovering at bloated valuations, while others are struggling. It feels like change is coming but the timing is anyone’s guess. After all, the goalposts keep changing. As Aaron Binsted, portfolio manager for the Lazard Defensive Australian Equity Fund points out, even central banks are unsure what to do. “If you go back to the end of last year, the Fed was telling us they were going to cut five times this year. Even just a few months ago. Now, as of the most recent updates, they’ve said they may not cut this year or they might sneak in one or two at the end of the year,” Binsted says. All of this makes it hard to predict what is going on in markets. Having said this, Binsted suggests there are some signs, like small improvements in the PMIs (Purchasing Managers Index), that indicate we’re likely in the late stages of this part of the market cycle. But it's this uncertainty across the market - and high valuations - which are also an opportunity. In this episode of The Pitch, Binsted shares what he is seeing in the market, the three drivers he is watching at the moment, and the companies he’s been buying and selling so far this cycle. This interview was filmed on Wednesday 8 May 2024.