Month: May 2022

Shares of newly listed Chrysos Corp Ltd (ASX: C79) are surging on Monday and now trade well in the green at $4.73 apiece.

After a tumultuous start to its life on the ASX, Chrysos shares are rebounding with a vengeance today amid (ASX: C79) are surging on Monday and now trade well in the green at $4.73 apiece.”>the release of a company update.

In wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is also rallying 3% higher on the day as tech shares begin to show signs of life once again.

What did Chrysos announce?

Chrysos advised that it has increased its total contract value (TCV) to A$559.8 million “with new international customer agreements”.

The company said that it has signed 5 new ‘PhotonAssay’ lease agreements, thereby increasing its TCV by a total of $108.6 million.

“Three new PhotonAssay leases signed with new customers Alfred H Knight and Britannia,” it said.

“[The] total number of deployed or contractually-committed PhotonAssay units rises from 33 to 38.”

The company’s CEO, Dirk Treasure, said it was an “exciting time for [the] business”.

[A]s we continue to execute our expansion plans and focus on key international mining hubs, with increasing demand, a strong pipeline of blue chip customers and our global market penetration continuing at pace, we feel the business is well positioned to meet its ongoing strategic and operational objectives.

In addition, Chrysos reports that 2 new PhotonAssay units have already been deployed with existing customers, bringing its ‘deployed unit base’ to 10.

Chrysos share price snapshot

Following its $183 million IPO roughly two weeks ago now, the Chrysos share price has been on a volatile journey.

Immediately after listing its share price sunk 40%, however, it has staged a recovery and is now trading back above its listing price.

The post Here’s why the Chrysos share price is rebounding 16% appeared first on The Motley Fool Australia.

More reading

• Chrysos Corporation share price plummets 40% on ASX debut

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has started the week on a reasonably positive note. The benchmark index is currently up 0.3% to 7,096.5 points.

Here’s what is happening on the ASX 200 today:

Goodman Q3 update impresses

The Goodman Group (ASX: GMG) share price is pushing higher on Monday. This follows the release of the industrial property company’s third quarter update. That update revealed that Goodman has continued its strong form during the period. So much so, it has upgraded its earnings per share growth guidance from 20% to 23% for FY 2022.

Brambles is a takeover target

The Brambles Limited (ASX: BXB) share price is racing higher today after the logistics solutions company confirmed that it is a takeover target. However, while it is in discussions with private equity giant CVC Partners, it hasn’t received a proposal as of yet. At the rate that private equity firms are making deals, there’ll be fewer and fewer quality blue chip options for Australian investors in the coming years.

Tech shares storm higher

A key driver of the ASX 200’s gains on Monday has been the tech sector. Thanks to an explosive night of trade on the Nasdaq index on Friday, the S&P/ASX All Technology Index is up 2.5% today. Appen Ltd (ASX: APX) and Megaport Ltd (ASX: MP1) are among the best performers in the sector today.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Brambles share price with a 10% gain. This follows new of its takeover talks with CVC. Going the other way, the Imugene Limited (ASX: IMU) share price is the worst performer with a 5.5% decline on no news. This leaves the biotech trading within a whisker of its 52-week low.

The post ASX 200 midday update: Brambles rockets, Goodman upgrades guidance appeared first on The Motley Fool Australia.

More reading

• Here’s why the Brambles share price is rocketing 11% on Monday
• Goodman share price charges higher on Q3 update and guidance upgrade
• Brambles share price on watch as takeover talks confirmed
• Experts name 2 beaten down ASX growth shares to buy after the market meltdown
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shiba Inu is known for two things: Its mascot, the Shiba Inu dog. And its jaw-dropping 2021 performance. The cryptocurrency surged 45,000,000% last year. It’s pretty much impossible to predict that sort of enormous short-term gain. But there are elements that can help us pick potential long-term winners in this dynamic market.

When I say winner, I’m referring to cryptocurrency players that have what it takes to attract more and more users and investors. And that eventually should lead to an increase in market value. The following two players could dwarf Shiba Inu over the long term. They offer more real-world utility. Both of the following players are blockchains that can host decentralized applications (dApps). And, unlike Shiba Inu, they aren’t limited by a massive circulating supply of tokens. Let’s check them out.

1. Ethereum

Ethereum (CRYPTO: ETH) already is a leader in the cryptocurrency market. It’s the second largest by market value after Bitcoin. But Ethereum has room to grow. And that could happen soon. Here’s why. Ethereum right now is tackling its biggest problems: transaction speed and fees. The crypto player is in the middle of a major upgrade.

The idea of the upgrade is to carry out transactions more quickly — and that will reduce congestion and costs users pay to complete operations on the network. Part of this involves a switch from the proof-of-work validation process to proof-of-stake. This puts validation power in the hands of those who have the biggest stake in Ethereum. And it eliminates the need to use tons of computer power to validate. This means an extra advantage is a greener platform.

Ethereum expects to switch over to proof-of-stake in the third or fourth quarter of this year. Then, it aims to introduce sharding next year. These chains relieve congestion on the main network. The result of the complete upgrade? Ethereum will go from today’s average of about 15 transactions per second to more than 100,000.

As I mentioned above, coin supply won’t hold Ethereum back from gains. Circulating coins total about 120 million. That’s compared to 549 trillion for Shiba Inu. Ethereum — unlike Shiba Inu — has room to grow in value without reaching an impossibly high market capitalization.

2. Cardano

One of Ethereum’s co-founders went on to launch Cardano (CRYPTO: ADA). So, we can count on a lot of the same quality in this younger player. What makes Cardano special? First, it already uses proof-of-stake to validate transactions. So, it’s already pretty fast. It can handle 250 transactions per second. And software engineers are working on a scaling solution that could greatly increase speed. 

Another positive is the way work on Cardano is unfolding. The blockchain only launches an update or something new after a peer review process. Of course, this slows down progress. But the big plus here is it avoids technical problems down the road. Once work on Cardano is complete, the system may be more reliable than other blockchains that have moved more quickly.

Right now, software engineers are working on the final two stages of Cardano development. The roadmap includes a total of five stages. The goal is to create a completely self-sustaining, decentralized system. Last fall, Cardano’s smart contract functionality launched. Right now, more than 2,600 smart contract scripts in the Plutus language exist on the network, according to Adapools.org.

Like Ethereum, Cardano’s growth isn’t limited by token supply. Cardano’s tokens in circulation total about 33.7 billion. So, Cardano could increase by five, for example, and still maintain a reasonable market value. All of this means investors in Cardano today have the opportunity to get in early — and watch the blockchain grow. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 cryptocurrencies that could dwarf Shiba Inu appeared first on The Motley Fool Australia.

More reading

• Shiba Inu is down 85%, but here’s how it could recover
• How is the Bitcoin ETF (EBTC) performing compared to the ASX on Friday?
• Crypto crash: Why Bitcoin, Ethereum, and Dogecoin are struggling again
• Crypto market crash: Cardano, XRP, and Solana all take big hits again today
• How are Australia’s Ethereum and Bitcoin ETFs faring on their first day?

Adria Cimino has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Bank of Queensland Ltd (ASX: BOQ) dividend received a significant boost following the company’s robust half-year results.

A bumper performance across key financial metrics reflected the strong business momentum, disciplined cost control, and improved portfolio quality.

Integration and strategic transformation were also on track and delivering results.

This led the company to give back to its shareholders, reflecting its consistent dividends policy.

Let’s see how the Bank of Queensland dividend stacks up against its rivals.

How does the Bank of Queensland dividend stack up?

Bank of Queensland is set to pay a fully franked interim dividend of 22 cents per share to eligible investors on 26 May.

However, according to Goldman Sachs, the bank is expected to declare a final dividend of 23 cents per share. This will bring the total FY22 dividend amount to 45 cents per share.

Based on the current Bank of Queensland share price of $7.51, this gives a forecast trailing dividend yield of 5.99%.

What about its competitors?

The company’s main direct competitors are Bendigo and Adelaide Bank Ltd (ASX: BEN) and the big four banks. They include Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and National Australia Bank Ltd (ASX: NAB).

By comparison, Bendigo Bank rewarded its shareholders with a fully franked interim dividend of 26.5 cents per share.

Goldman Sachs estimates the bank to maintain its final dividend at 26.5 cents per share, bringing the full-year dividend to 53 cents.

Bendigo Bank shares are exchanging hands at $10.34, which gives it a dividend yield of 5.12%.

Another competitor in the sector, ANZ, is on track to distribute an interim dividend of 72 cents per share to shareholders on 1 July. The company’s forecasted final dividend for FY22 is predicted to be around 73 cents on Goldman Sachs’ watch.

This translates to a full-year dividend of $1.45.

Calculating using the last price of $25.59 for ANZ shares, this is a dividend yield of 5.66%. 

Comparing the Bank of Queensland dividend yield against its peers may be one point to consider when investing. However, it is important to also look at the total shareholder return for the past 12 months.

As such, Bank of Queensland shares have fallen 14% for the period, while Bendigo Bank’s have moved up 1%.

When looking at ANZ shares, they have dropped around 7%.

Are Bank of Queensland shares a buy?

A couple of brokers weighed in after the bank revealed its half-year financial performance in mid-April.

Goldman Sachs analysts believe Bank of Queensland shares still have a potential upside despite the broker cutting its 12-month price target. The broker slashed its rating by 5.1% to $9.34 for the company, which implies an upside of roughly 25%.

On the other hand, Credit Suisse also reduced its price target by 12% to $10.00 apiece. This represents an upside of around 34% from where the regional bank’s shares last traded.

On valuation grounds, Bank of Queensland commands a market capitalisation of roughly $4.8 billion.

The post How does the Bank of Queensland dividend compare to the other ASX 200 banks? appeared first on The Motley Fool Australia.

More reading

• 2 high-yield ASX 200 dividend shares to fight inflation according to brokers
• How has the Bank of Queensland share price travelled since the company’s half-year results?
• Is there upside in the Bank of Queensland share price in May?
• Analysts name 2 ASX dividend shares to buy with growing yields
• What is the current dividend yield on Bank of Queensland shares?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian Strategic Materials Ltd (ASX: ASM) share price is off to the races today.

Shares in the ASX rare earths and critical metals miner closed on Thursday at $5.26 per share. The company entered a trading halt on Friday at its own request pending today’s equity funding announcement.

In morning trade, the Australian Strategic Materials share price stands at $6.87, up 30.7%.

What’s piquing ASX investor interest today?

Investors are bidding up Australian Strategic Materials shares following a US$15 million (AU$10.4 million) funding announcement.

According to the release, Korean company KCF Energy will invest US$15 million of equity funding via a share purchase at an issue price of AU$8.90 per share.

Notably, that’s 69% higher than what the Australian Strategic Materials share price closed for on its last day of trading

The parties are also revising their July 2021 Framework Agreement, reporting that negotiations are ongoing for a five-year offtake agreement for 2,800 dry metric tonnes of NdFeB alloy from the Korean Metals Plant.

One of the core negotiations in the Revised Framework Agreement is for KCM to facilitate the acquisition of 10% of Australian Strategic Materials (Holdings) shares for US$125 million by a “strategic investor”.

The parties are also negotiating another US$105 million equity investment by KCM, which would be subject to Australian Strategic Materials shareholder approval.

Commenting on new investment, Australian Strategic Materials managing director, David Woodall said:

We welcome this investment in ASM from our Korean partners as we continue discussions and agree on terms to progress our Dubbo Project and importantly ASM’s mine-to-metals strategy…

We are pleased to maintain our close relationship with Korea and our partners, who are highly supportive of ASM’s mine-to-metals strategy. These partners wish to secure their supplies of the metals needed to drive Korea’s manufacturing industry.

Separately, the critical metals miner released its investor presentation today.

Australian Strategic Materials share price snapshot

Today’s big boost in the Australian Strategic Materials share price comes after a difficult few months for the critical metals miner.

To give you some idea, shares are up 59% over the past 12 months but are down 40% in 2022.

By comparison, the All Ordinaries Index (ASX: XAO) is up 2% over the 12 months and down 7% year-to-date.

The post Here’s why the Australian Strategic Materials share price is surging 31% today appeared first on The Motley Fool Australia.

More reading

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Brambles Limited (ASX: BXB) share price is surging higher on news the company is in takeover talks.

The pallets, crates, and containers manufacturer has caught the eye of global private equity giant CVC Capital Partners.

At the time of writing, the Brambles share price is $11.58, 11.03% higher than its previous close.

Though, that’s down from its earlier high of $11.82, representing a 13.3% increase.

Let’s take a closer look at the rumours the company confirmed this morning.

Brambles share price surges on confirmed takeover talks

The Brambles share price is taking off after the company responded to reports CVC Capital could be gearing up to present an offer valuing it at more than $20 billion.

While the S&P/ASX 200 Index (ASX: XJO) constituent didn’t note the value of any potential bid, it did confirm it was in talks with CVC this morning.

Those talks are in early stages and there’s no guarantee they’ll lead to an acquisition offer, the company said.

Any potential bid would presumably aim to entice Brambles to open its books to the firm. And CVC is reportedly not holding back.

The private equities giant is considering slapping an offer valuing the company at around $20 billion on the table, The Australian reported last night.

At its previous close, Brambles boasted a market capitalisation of around $15 billion.  

However, the company doesn’t seem to be placing all its bets on such an offer.

“The board and management remain focused on implementing the Shaping our Future transformation plan,” the company said in today’s release.

“The board is also considering other strategic options for the company that maximise shareholder value.”

Today’s gains included, the Brambles share price is 8% higher than it was at the start of 2022. It has also gained 9% since this time last year.

The post Here’s why the Brambles share price is rocketing 11% on Monday appeared first on The Motley Fool Australia.

More reading

• Brambles share price on watch as takeover talks confirmed
• Broker names 3 more ‘champion’ ASX 200 shares to buy and hold
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why Betmakers, Brambles, Challenger, and Stockland shares are charging higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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These ASX shares could be ideas to consider because of their growth plans and the dividends they are paying to investors.

Many businesses can be put into the ‘growth’ basket or the ‘dividend’ basket. It can be rare to find a business that ticks both boxes.

But, these two could fit the bill and give investors exposure to both:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a retailer of baby and infant products such as prams, toys, clothes, and furniture.

First, let’s look at the dividend potential. In the recent FY22 half-year result, the ASX share grew the interim dividend by 13.8% to 6.6 cents per share. That brings the trailing grossed-up dividend yield to 5%.

The company has been delivering growth. HY22 sales were up 10% to $239.1 million, with online sales rising by 23.8% (representing 19.7% of total sales). Baby Bunting revealed that its gross profit margin improved 192 basis points to 39.3%, helping statutory net profit after tax (NPAT) rise by 12.2% to $8.1 million.

Baby Bunting is looking to grow profit in a number of ways – growing its store network, expanding in New Zealand, selling more private label and exclusive products (with higher gross margins), being more efficient, and growing its e-commerce capabilities to drive online sales.

The company is going to assess the broader $5.1 billion baby goods market for future growth opportunities, relative to the company’s current $2.5 billion addressable market.

Propel Funeral Partners Ltd (ASX: PFP)

Propel describes itself as the second-largest private provider of death care services in Australia and New Zealand. It has 145 locations, including 32 cremation facilities and nine cemeteries.

The company points to long-term tailwinds for its business, as morbid as that may be. It says that the number of deaths is the most significant driver of revenue in the death care industry.

Death volumes in Australia are expected to rise by 2.9% per annum from 2020 to 2031 and 2% from 2031 to 2050. In New Zealand, death volumes are expected to rise by 2.2% per annum from 2021 to 2032 and 1.8% from 2032 to 2050.

Not only is the number of funerals projected to increase, but the ASX share is also achieving growth of its average revenue per funeral. In the FY22 half-year result, the average revenue per funeral of $5,902 was up 0.5% year on year and up 2.5% on the pre-COVID-19 period.

The ASX share continues to make acquisitions to boost its market share in Australia and New Zealand. In the 2020 calendar year, its market share had grown to around 7%. It is continuing to explore other potential acquisitions.

In January 2022, total funeral volumes were “materially higher” than January 2021. A higher mix of full-service funerals contributed to material growth in average revenue per funeral.

In terms of the bottom line in HY22, Propel’s operating earnings per share (EPS) rose 23.1% to 7.3 cents. The board declared an interim dividend of 6 cents. That means the grossed-up dividend yield is currently 3.6%.

The post 2 ASX shares that could be buys for both growth and dividends appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX shares to buy with ~50% upside potential
• Are these 2 top ASX growth shares buys right now?
• Here are 2 top ASX dividend shares analysts are tipping as buys

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting and Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Core Lithium Ltd (ASX: CXO) share price has started the week strongly.

In morning trade, the lithium developer’s shares are up 7% to $1.22.

This means that the company’s shares are now up approximately 90% since the start of the year.

Why is the Core Lithium share price storming higher?

Investors have been bidding the Core Lithium share price higher today despite there being no news out of the lithium developer.

Today’s gain is likely to have been driven by investors returning to risk assets on Monday following a strong showing on Wall Street on Friday and news that China’s lockdowns are easing slightly.

Core Lithium isn’t the only lithium share rising today. The likes of Lake Resources (ASX: LKE), Pilbara Minerals Ltd (ASX: PLS), and Sayona Mining Ltd (ASX: SYA) are also rising materially at the time of writing.

This mirrors strong gains by lithium giants Albemarle, Sociedad Quimica y Minera de Chile (SQM), and Livent Corp on Friday night. Their US listed shares were up 7%, 9.5%, and 12.5%, respectively during the session.

Time will tell how long this positive sentiment lasts this time around. But lithium investors will no doubt be hoping it is here to stay.

The post Why is the Core Lithium share price charging 7% higher? appeared first on The Motley Fool Australia.

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• Why is the Core Lithium share price tracing 6% lower on Friday?
• Investing in ASX lithium shares? Here’s what you need to know
• Here are the top 10 ASX shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There’s no way to sugarcoat things. The past few months have been absolutely awful for investors. The S&P 500 Index has plunged a gut-wrenching 18% so far this year. Multitudes of stocks have plummeted even further from their peak. There’s no end in sight to the selling, given all the headwinds currently facing the global economy. 

Difficult periods like this can make even the most seasoned investors want to throw in the towel and liquidate their portfolios. However, I’d like to encourage you to press through this challenging period. I want to share my investing story and some data to give you some hope that this, too, shall pass.

I learned to invest the hard way

I was only a few years into my investing journey when the Financial Crisis upended the global economy and stock market. Before that event, my experience with stocks was that they went up. That had my confidence swelling to the point of overconfidence.

So I made some really reckless investment decisions as stocks started to crash. I’m lucky that I didn’t completely wreck my portfolio. I started buying stocks just because their price went down a lot. I focused on the stock price and not the underlying business. One of the most foolish (and I mean really small “f” foolish) moves was to buy call options on investment bank Lehman Brothers on the firm belief that the government would bail them out. Suffice it to say; I lost a lot of money on that gamble.

As my portfolio dove deeper into the red, accelerated by my ill-timed shift from an investor to a trader, I got to the point in early 2009 where I had to take a break from investing. However, instead of liquidating what remained of my portfolio, I just stopped making changes. I took a month off from buying and selling stocks and reset my strategy.

I learned a few important lessons during this challenging time:

1. Forget about the stock price; focus on the business: I stopped buying stocks because they had low price tags and focused on investing in companies that I believed could thrive over the long term.
2. Credit is crucial: I started putting more emphasis on a company’s balance sheet, focusing on those with investment-grade credit ratings because that gave them more financial flexibility to survive tough times so that they could thrive in the eventual recovery.
3. Cash flow is king: This lesson goes hand in hand with having a strong balance sheet. Cash flow gives companies the funds to expand when credit is unavailable.

As tempting as it was to throw in the towel on investing in 2009, I’m so glad I didn’t. That challenging period made me a better investor, and my portfolio’s value has grown by leaps and bounds over the more than a decade since the Financial Crisis. While, like most investors, the value has fallen quite a bit from the peak of late, I sleep well at night knowing that, for the most part, I own a portfolio filled with several high-quality companies with strong balance sheets and cash flows that will weather this storm and thrive on the other side.

These numbers urge you not to give up

I want to pivot from my story to share an eye-opening chart I recently came across that shows the power of persevering as an investor. When stocks are in freefall, it can make an investor think about liquidating to avoid further damage. However, historically some of the market’s best days have come during these periods. Investors who give up on the market could see their returns suffer.

Decade	Price return of the S&P 500	Return excluding the 10 best days per decade
1930s	(42%)	(79%)
1940s	35%	(14%)
1950s	257%	167%
1960s	54%	14%
1970s	17%	(20%)
1980s	227%	108%
1990s	316%	186%
2000s	(24%)	(62%)
2010s	190%	95%
2020s	18%	(33%)
Since 1930	17,715%	28%

Data source: CNBC and Bank of America. 

The middle column shows the total return earned by investors over decades. Over the long term, investors who kept their money in the market earned a staggering return, despite enduring their share of bear markets. However, if an investor liquidated their portfolio and went to cash, they ran the risk of missing out on some of its best days. They’d earn much lower returns if they were on the sidelines during the 10 best days each decade.

Stay the course

These are definitely challenging days to be an investor. However, please don’t give up because they should eventually pass. Instead, use this time to reevaluate your investment strategy so that your portfolio can thrive again when the market eventually recovers.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Investing can be brutal at times, but don’t give up now appeared first on The Motley Fool Australia.

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Matthew DiLallo has no position in any of the stocks mentioned. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Bitcoin (CRYPTO: BTC) price has enjoyed a bit of a rebound over the past few hours, putting the world’s original crypto up 4% since this time yesterday.

At the time of writing, one Bitcoin is worth US$31,249 (AU$44,872). That leaves the token down 8% over the past seven days and down 35% year to date.

Could the Bitcoin price retrace back to US$20,000?

You have to go back to November 2020 to find Bitcoin trading at US$20,000.

But according to crypto analysts Brian Cubellis and David Duong from Coinbase Institutional, the world’s leading digital token could fall back to those levels.

Commenting on the market sell-off following the meltdown of TerraUSD (CRYPTO: UST) and the token meant to keep UST pegged to the US dollar, Terra (CRYPTO: LUNA), they said (quoted by Bloomberg last week), “Multiple headwinds have given market players almost nowhere to hide in any asset class”.

Although the Bitcoin price edged above US$30,000 over the past hours, it still traded as low as US$29,573 overnight. And that, according to Cubellis and Duong, is cause for concern.

The analysts said that US$30,000 is “a major resistance”, as prices have continued to struggle to move and hold higher from there.

“If things were to deteriorate further the next line of support would come at around US$20,000, which was the all-time high in the previous 2017/2018 cycle,” they said.

The Bitcoin prices hit a low point of US$26,350 on Thursday, according to data from CoinMarketCap.

Crypto bulls keep an eye on the long game

Plenty of crypto investors will have lost money last week, with some US$270 billion estimated to have been wiped from the total crypto market valuation.

But crypto enthusiasts like Vasja Zupan, president of cryptocurrency exchange Matrix, are keeping their eye on the horizon and remain optimistic on the long-term outlook for the Bitcoin price.

According to Zupan (quoted by Bloomberg), “I remain long term bullish, especially on Bitcoin. But I do foresee high volatility for some time followed by a period of much lower volumes at lower prices before we can expect trending to new all-time highs.”

The post Is the Bitcoin price heading all the way back down to US$20,000? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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