Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry.
Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses.
Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets.
Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep.
Education
Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning.
"Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it."
— Albert Einstein
Published
If you've ever sat through a finance course, you would have learned about correlation.
The theory is that similar companies are exposed to the same variables, causing their stock prices to move in the same direction.
This creates the need for a diversified portfolio, which is why many experts suggest investors hold 15-30 uncorrelated stocks.
Companies in the same sector are often viewed as highly correlated.
For example, the big four banks operate in the banking sector. Australian banks collectively benefit when the RBA raises the cash rate because they can then raise mortgage rates and make more money. They are also disadvantaged when unemployment spikes, as this increases the likelihood of mortgage defaults.
A similar logic can be applied to the consumer discretionary sector. The sector is considered relatively cyclical, tied to the state of the economy.
In theory, when the economy is booming, consumer discretionary companies should benefit as people have more money to spend at their stores. This should translate into higher share prices for consumer discretionary stocks. On the flip side, when unemployment and inflation are up, consumers may be less inclined to spend on discretionary purchases.
However, that logic went out the window last week when ASX furniture retailers Nick Scali Ltd (ASX: NCK) and Temple & WebsterGroup Ltd (ASX: TPW) provided trading updates.
Nick Scali's shares fell more than 15% in a day, while Temple & Webster's update sent its shares soaring more than 30%.
