• Should you worry about geopolitical events in investing?

    USA China Trade War

    Investors in the share market can be sent into a flurry of worry by geopolitical events. Should you worry about them when it comes to investing?

    There is growing concern about what’s happening with the two superpowers of the world, China and the US.

    Western countries aren’t happy with how things are going in Hong Kong with a new security law passed by China. The Chinese don’t like that Australia was pushing for an inquiry into the coronavirus. The US election could turn out to be a real mess with how things are going with the ongoing spread of the coronavirus.

    Geopolitical events can cause big shudders in the share market. Just look what happened during the trade war. Each tweet from President Trump caused the market to react negatively or positively.

    Keep geopolitical events in mind

    I do think it’s important to be aware of what’s going on. Sometimes an event can cause the earnings and valuation of shares to move dramatically higher or lower. Look what happened with Bellamy’s. Look how changing oil prices have an obvious huge effect on shares like Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO).

    Politics can have a big effect on returns. The decisions about the NBN were decided by politicians and this has had a huge effect on Telstra Corporation Ltd (ASX: TLS).

    But don’t give it too much weight

    We also need to keep in mind that geopolitical events will keep happening. There probably isn’t going to be a time when we all agree with what the leaders of Australia, the US, China are all doing. 

    Geopolitical events have been happening for many centuries. We should expect that things will keep changing. There wouldn’t be any share market volatility if there were no surprises.  

    The share market reached an all time high in February 2020 despite all previous (and ongoing) problems. As investors we need to stay optimistic for the long-term or else we’ll end up missing out on gains.

    All we can do is keep investing in great businesses at good prices, which is what I think these shares are right now…

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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  • 3 cheap ASX 200 shares I’d buy today

    words 50% crashing into ground, asx 200 shares, discount shares

    ASX 200 shares have had a wild ride in 2020 with the S&P/ASX 200 Index (ASX: XJO) slumping 13.47% lower.

    However, it hasn’t been all bad news with some companies surging in value. While I think the ship has sailed on some ASX growth shares like Afterpay Ltd (ASX: APT), there are still some Aussie companies I’d like to buy.

    Here are a few at the top of my watchlist as we head into June 2020.

    3 ASX 200 shares I’d like to buy today

    I don’t mind a bit of a speculative play in a diversified portfolio and that’s where Woodside Petroleum Limited (ASX: WPL) comes in.

    I think the geopolitics and ongoing oil price war will make the Woodside Petroleum share price volatile in 2020. The Aussie oil producer’s shares are down 33.8% this year but where there is risk there is potential reward.

    OPEC+ has slashed production in recent months and the global economy is starting to hum back to life. That’s good news for Woodside with higher demand for oil and energy expected over the coming months.

    For a less speculative play, I think Westpac Banking Corp (ASX: WBC) is worth a look. The ASX 200 bank share has fallen 27.86% lower this year but could be in the buy zone.

    We know Westpac has had its fair share of issues over the last 12 to 18 months and I think a share price correction is justified given the uncertainty created by the coronavirus pandemic. We could also see real estate come under pressure and further writedowns.

    Having said that, the share market is inherently forward-looking. Also, Westpac is still churning out billion-dollar profits. I think it will continue to be a strong ASX 200 dividend share if I’m investing for the next decade.

    Finally, Domain Holdings Australia Ltd (ASX: DHG) is definitely on my list of cheap shares I’d buy today.

    Many Aussies are hoping to see a property correction in 2020 before buying into the market. However, I’m not so sure this will happen. There is a lot of support for owner-occupiers and property investors right now. While we might see the market adjust slightly in September, I still think listings will recover which will be good news for this ASX 200 media share.

    Foolish takeaway

    These are just a few themes that I think are going to impact ASX 200 shares in 2020. That being said, it’s important to be strategic with your investments and make sure you’re looking at the next 10 years rather than the next 10 weeks.

    For a few more long-term buy and hold options, check out these 5 ASX shares for a good price today!

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    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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  • RTG Mining share price flies 125% higher after being granted mining license

    business men digging up dollar sign

    The RTG Mining Inc. (ASX: RTG) share price skyrocketed this morning to be up by as much as 124.64% in early trade. At the time of writing, the small-cap ASX mining share is sitting 81.16% higher for the day at 12.5 cents per share. 

    RTG Mining is a mining and exploration company dual-listed on both the ASX and Toronto Stock Exchange. The company has built 7 gold mines in 5 countries on 3 continents and is currently focused on progressing its 8th development project, Mabilo, a high-grade copper-gold mine in the Philippines.

    The Mabilo Project is currently in the final stages of permitting and near-term production is anticipated.

    Why the RTG Mining share price has gone through the roof

    This morning, RTG Mining announced that Mt Labo Exploration and Development Corporation, which holds the Mabilo Project, has been granted a mining license. 

    The Mines and Geosciences Bureau (MGB) has approved the expansion of the current Mineral Production Sharing Agreement for the Nalesbitan Project (another RTG project with “excellent” copper porphyry potential) to include the Mabilo Project.

    As a result, the Mabilo Project has been granted a Declared Mine Feasibility Study and Environmental Clearance Certificate.

    “Mt. Labo has been working closely over an extended period with the MGB to secure this important milestone for the project and is deeply appreciative of the considerable effort and support provided by the MGB,” the announcement read.

    Recent capital raising

    Today’s update comes on the back of a capital raising that was announced last week. RTG Mining received commitments to raise approximately US$6 million (~A$9.2 million) in a private placement to Australian and international institutional and sophisticated investors – priced at 5.7 cents per share.

    The proceeds of the placement will be used to continue to support the advancement of the Mabilo Project towards start-up, and also pursue new potential business development opportunities. Additionally, RTG Mining will use the funds to partially repay its corporate loan facility.

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    Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 list of market resources pinned to the top of the sub has been updated!

  • Financial statement inaccuracy

  • PFE | Pfizer and German partner BioNTech SE said Tuesday they’ve begun delivering doses of their coronavirus vaccine to US candidates with trials in Germany already underway.

  • PFE | Pfizer and German Parker BioNTech SE have begun delivering doses of their coronavirus vaccine for human testing US, trials in Germany already underway.