Author: openjargon

Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) shares have both underperformed the 2.3% 12-month gain posted by the S&P/ASX 200 Index (ASX: XJO) earlier this week.

In fact, both of the big four ASX 200 bank stocks are well into the red since this time last year.

With CBA shares recently trading for $157.08 apiece, Australia’s biggest bank stock is down 7.8% in 12 months.

Westpac shares have fared even worse, recently down 11.3% for the year at $33.95 each.

Now we shouldn’t leave out the fully franked dividends both banks have paid out over the full year. CBA shares trade on a fully franked dividend yield of 3.2%, while Westpac shares trade on a fully franked dividend yield of 4.5%.

Though even with these dividends in mind, the accumulated value of both ASX 200 bank stocks has gone backwards over the past year.

And looking ahead, Red Leaf Securities’ John Athanasiou expects they’ll both continue to struggle (courtesy of The Bull).

Here’s why.

Time to exit CBA shares?

“CBA shares deserve to trade at a premium given its dominant retail franchise, strong technology platform, solid deposit base and consistent execution,” Athanasiou said.

Summarising his sell recommendation on CBA shares, he concluded:

However, Australian banking remains a mature industry, with intense competition across mortgages and deposits limiting the potential for outsized earnings growth. At a premium valuation, investors are paying a higher price for quality, leaving little room for disappointment.

After a substantial re-rating, investors may be better served taking some profits and reallocating capital towards businesses offering stronger growth at more reasonable valuations.

Which brings us to…

Westpac shares could be facing competitive headwinds

Athanasiou also issued a sell recommendation on Westpac shares.

“The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive,” he said. “Mortgage pricing is aggressive, deposit competition remains intense, and the scope for sustained margin expansion appears limited.”

And Westpac’s 4.5% dividend yield isn’t enough to tip the scales for Athanasiou.

He noted:

Westpac’s dividend remains attractive, but investors should also consider opportunity cost.

We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.

Another expert is bearish on CBA shares

Athanasiou wasn’t the only analyst to advise selling CBA shares this week.

He was joined by Alto Capital’s Tony Locantro.

“The CBA remains Australia’s leading banking franchise and delivered another strong result in full year 2026,” Locantro said.

Commenting on those strong results, he said:

Cash net profit after tax of $10.982 billion was up 7% on the prior corresponding period. The full-year dividend of $5.05 a share, fully franked, was up 4%. Strong lending, deposit growth and a robust capital position continue to demonstrate the quality of the business.

As for his sell recommendation, Locantro concluded:

However, operating expenses and loan impairment expenses increased.

The CBA continues to trade at a substantial valuation premium to domestic banking peers. Although the underlying business remains strong, the premium valuation leaves little room for disappointment and may potentially constrain prospective returns.

The post Sell alert! Why this expert is calling time on Westpac and CBA shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

ASX blue-chip shares can be among the most appealing picks for passive income due to their reliably high dividend yields.

The strongest businesses usually have the best balance sheets, highest margins and the best grip on their market share.

I’m going to talk about two ideas for dividends that I’d call ASX blue-chip shares.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia with its Medibank and ahm brands. The company also has a growing healthcare division following multiple acquisitions.

Healthcare is a defensive industry with largely consistent demand, helping Medibank generate defensive profits that then fund consistent dividends.

However, the Medibank dividend isn’t being maintained at the same level. Aside from 2020, its annual payout has increased every year during the past decade.

In the recent FY26 result, Medibank increased its annual payout by 6.7% to 19.2 cents per share. That came after a 6.7% rise in group operating profit and a 27.5% rise in net profit.

In FY27, the business is aiming to grow its market share in a disciplined way, including improved volume momentum for the Medibank brand. It also expects its non-resident private health insurance segment to deliver solid gross profit growth. The Medibank Health segment expects to deliver around 25% profit growth in FY27 thanks to Better Medical.

At the time of writing, its FY26 payout translates into a grossed-up dividend yield of 5.7%, including franking credits.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that focuses its investments on ASX blue-chip shares. The LIC structure allows WAM Leaders to turn the pleasing investment returns it makes into a growing annual dividend.

Impressively, its portfolio has returned an average of 12.1% per year since inception in May 2026, before fees, expenses and taxes. That level of return has allowed the business to increase its annual dividend every year since FY17. The FY26 annual dividend was increased by 2.1% to 9.6 cents per share.

That payment translates into a FY26 grossed-up dividend yield of 10.2%, including franking credits, at the time of writing. That’s an incredibly high (and attractive) payout, in my opinion.

Some of the businesses in the portfolio that it had a large active position in at the end of July 2026 included Mirvac Group (ASX: MGR), Stockland Corporation Ltd (ASX: SGP), Rio Tinto Ltd (ASX: RIO), Amcor (ASX: AMC) and GPT Group (ASX: GPT).

However, there were also typical names in the holdings such as Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG) and BHP Group Ltd (ASX: BHP).

I think its ASX blue-chip share strategy will help it continue to deliver pleasing returns over the long term.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended BHP Group, Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) has just given investors a fresh look at how the business is performing.

The shares have had a difficult year, but I think the current weakness has created an attractive long-term opportunity.

So, would I buy Qantas shares today? My answer is yes.

The business still looks healthy

Qantas’ FY26 result was not perfect. Higher fuel costs and disruption from the conflict in the Middle East weighed on earnings.

But I still saw plenty to like.

Demand remained resilient across much of the network, while Qantas Domestic revenue increased 5% and Jetstar Domestic earnings grew 15%. Qantas also reported its highest customer satisfaction levels in a decade.

I think this is encouraging because Qantas has spent the past few years working to rebuild its relationship with customers while improving operations.

Qantas Loyalty is another valuable part of the business. Underlying earnings from the division increased 12% in FY26, and management expects further growth in FY27.

That provides another source of earnings alongside the airline operations themselves.

Fleet renewal could improve the business

I am also positive about Qantas’ major fleet renewal program.

Seventeen new aircraft arrived during FY26, with up to another 31 expected in FY27. The airline is introducing newer A321XLRs, A220s, A350s, and 787s across its network.

New aircraft can improve fuel efficiency, reduce operational complexity, and provide a better passenger experience.

They can also open routes that were previously difficult to operate economically.

I think Project Sunrise is the most obvious example, with Qantas preparing to begin non-stop Sydney to London flights using its new A350-1000ULR aircraft.

I think this investment could leave Qantas with a stronger and more efficient airline several years from now.

The price looks attractive to me

Qantas shares are trading around $9.61 on Friday and are down approximately 20% over the past 12 months.

According to CommSec, consensus earnings per share forecasts are $1.16 in FY27 and $1.15 in FY28.

That puts the shares on a forward price-to-earnings ratio of just over eight times.

I think that looks attractive for a business with strong domestic brands, an international network, a growing loyalty operation, and significant investment underway to modernise its fleet.

Income investors have something to consider as well. CommSec forecasts dividends per share of 44.8 cents in FY27 and 56.2 cents in FY28. This represents dividend yields of approximately 4.7% and 5.8%.

Foolish takeaway

I would buy Qantas shares at around $9.61.

Airlines will always come with risks, particularly from fuel prices, economic conditions, and geopolitical disruption.

But after a 20% decline, I think the current price leaves enough room for those risks while giving investors exposure to a business that could become stronger as its fleet renewal progresses.

The post Would I buy Qantas shares today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

I think the best ASX dividend shares can provide investors with a mixture of capital growth and dividends, which could suit grandparents, children and anyone in between. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the best pick of the bunch.

Past performance is not a guarantee of future performance, but over the last four years, the Soul Patts share price has risen by around 70%. That’s a pleasing level of growth, and that’s before we’ve even talked about the dividend.

Soul Patts is an investment conglomerate. Let’s get into why it’s such an appealing option for dividend income.

Diversification

As an investment house, the business has built up a diversified and impressive portfolio.

The company has a flexible mandate to invest in almost any assets in different markets.

For example, Soul Patts is currently invested in resources, energy, telecommunications, swimming schools, agriculture, water entitlements, electrification, financial services, retirement living, industrial property, building products, credit and plenty more.

This portfolio provides Soul Patts with a defensive and largely uncorrelated source of cash flow to pay dividends.

I like that the ASX dividend share regularly adds to the portfolio (and occasionally divests) to ensure the portfolio is future-focused and has a compelling future.

Longevity

To make any investment for a grandparent, I’d want to invest in something that has a long track record and is unlikely to result in a permanent capital loss.

The diversification of the ASX dividend share’s portfolio is useful, but I think its longevity is even more impressive.

It has been listed in Australia for more than 120 years, making it one of the oldest businesses on the ASX.

If there was going to be one business within the S&P/ASX 200 Index (ASX: XJO) that I’d bet would still be around in another 20 or 30 years, it’d be Soul Patts because of the ASX dividend share’s ability to change its portfolio.

Reliable ASX dividend share

I think its reliable dividend is the top reason to like Soul Patts as an ASX dividend share.

The business has increased its annual ordinary dividend every year since 1998. No other ASX share has a record like that.

Perhaps just as impressively, Soul Patts has paid a dividend every year for more than 120 years, including through wars, pandemics, economic crashes, and so on.

I have a high level of optimism that the company can continue its dividend growth record for grandparents and every other aged investor wanting an ASX dividend share.

The post The 1 ASX dividend share I’d buy for my grandparents appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to ASX ETFs, investors are spoiled for choice. 

The record net flows of investor allocation to the sector have pushed providers to list more and more funds. 

Today there are hundreds of exchange-traded funds. These cover everything from Australian shares and global equities to artificial intelligence, cybersecurity, uranium and gold. 

For experienced investors, that variety provides more ways than ever to build a portfolio tailored to their goals.  

But for many, all those choices can also lead to paralysis by analysis. 

It can be difficult to decide where to start and how to diversify your portfolio. 

According to Vanguard, a growing number of investors are turning to diversified ETFs, also known as ready-made, multi-asset or asset allocation ETFs to solve this problem. 

What is a diversified ETF?

Unlike traditional ETFs, which typically track a single market or sector, ready-made ETFs invest across multiple asset classes within a single fund. 

They offer the advantage of providing diversification in one trade, instead of buying separate ETFs for Australian shares, international shares, emerging markets and fixed income.

Investors can generally choose between conservative, balanced or growth-oriented portfolios depending on their investment objectives, risk appetite and time horizon. 

In simple terms, it also allows investors to not actively manage their portfolios. These kinds of ASX ETFs can be set-and-forget equities. 

Why are investors choosing diversified funds?

According to a report from Vanguard, diversified ETFs are gaining traction. 

At the end of June, Australia’s diversified ETF category managed more than $9 billion across a range of funds. That’s up from $6.3 billion a year earlier – an increase of around 44% – with the category now accounting for approximately 2.5% of total ASX-listed ETF assets.

The strong growth suggests more Australian investors are embracing ready-made portfolios as a simple way to build a diversified investment strategy without having to construct and maintain one themselves. 

Australian investors also have billions of dollars invested in unlisted diversified funds, highlighting the longstanding appeal of professionally diversified portfolios. 

For investors seeking a diversified portfolio in a single investment, diversified ETFs can provide exposure to a range of asset classes.

Vanguard’s investing philosophy emphasises diversification, regular investing and staying the course through market ups and downs, while periodically reviewing investments to ensure they remain aligned with long-term goals and circumstances.

Why this could be the top option

For investors looking to target a diversified ASX ETF, one stellar option is the Vanguard Diversified High Growth Index ETF (ASX: VDHG). 

Rather than investing directly in individual companies, VDHG invests in a range of underlying index funds and ETFs. Each provides exposure to a highly diversified mix of equities and bonds from around the globe.

At the time of writing, its exposure is: 

• Australian Shares (36%)
• International Shares (26.5%)
• International Shares Hedged (16%)
• International Fixed Interest Hedged (7%)
• International Small Companies (6.5%)
• Emerging Market Shares (5%)
• Australian Fixed Interest (3%)

Overall, 90% of the portfolio is allocated to growth assets, while 10% is invested in defensive assets. 

Rather than investors determining how much to allocate to each of these building blocks and when to rebalance them, the portfolio manager monitors and rebalances the portfolio to maintain its target asset allocation over time.

The post Is this the best diversified ASX ETF on the market right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

It’s been a tough year for most ASX tech shares.

Not to mention their stockholders.

Indeed, while the All Ordinaries Index (ASX: XAO) was recently up a bit more than 1% in 12 months, the S&P/ASX All Technology Index (ASX: XTX) has fallen almost 27% over this same period.

ASX tech shares have faced headwinds on several fronts.

First, the last year has seen central banks the world over pivot from lowering interest rates to hiking them, or at the very least staying put. And growth shares like tech companies, which are often priced with higher future earnings in mind, tend to be sensitive to any moves in borrowing costs.

The tech sector has also taken a hit from a development of its own devising. Namely AI.

In what you may have heard called the ‘SaaSpocalypse’, a lot of Aussie and global technology stocks came under pressure amid investor concerns that AI could potentially replace the services these companies currently provide.

Now, that’s the year just past.

Looking ahead, Red Leaf Securities’ John Athanasiou has drilled into two ASX tech shares he believes are well-placed to outperform (courtesy of The Bull).

ASX tech share primed for a rebound

First up we have Atturra (ASX: ATA), whose shares were recently down around 52% over 12 months, trading for 39 cents apiece.

Which could make now an opportune time to buy.

“Atturra is an AI-driven technology integrator,” Athanasiou said. “It’s focusing on organic growth after integrating a number of acquisitions.”

Turning to some key financial metrics, he noted:

Underlying EBITDA [earnings before interest, taxes, depreciation and amortisation] in full year 2026 is expected to range between $30 million and $30.5 million, which is in line with guidance, while second half operating cash flow is expected to reach between $22 million and $23 million.

Summarising his buy recommendation on the ASX tech shares, Athanasiou concluded:

Atturra plans to invest an additional $3 million in AI, while its SAP business is forecast to grow by more than 50% between fiscal years 2026 and 2027.

If management successfully executes its fiscal year 2027 strategy, Atturra’s earnings profile should materially strengthen.

Which brings us to…

Tech company on the growth path

Athanasiou also issued a buy recommendation on DUG Technology Ltd (ASX: DUG).

Shaking off the broader malaise dragging on the tech sector, DUG shares were recently up around 26% over 12 months, trading for $2.00 apiece.

“This software solutions company is building strong momentum in response to improving revenue, margins and cash flow,” Athanasiou said.

Explaining his buy recommendation on this ASX tech share, he said:

Revenue of US$62.7 million rose 39% in the first nine months of fiscal year 2026. Normalised EBITDA almost doubled to US$20.9 million. Operating cash flow reached US$23.7 million and DUG moved from net debt a year earlier to $US11.4 million in net cash. The earnings mix is also improving.

Demand for DUG’s proprietary MP-FWI imaging technology remains strong, while recurring 4D projects add further revenue visibility. Given accelerating growth, improving cash generation and a stronger balance sheet, DUG remains an attractive technology exposure.

The post Expert names 2 ASX tech shares to buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Atturra and Dug Technology. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The share market naturally draws attention towards businesses promising rapid growth or the next major breakthrough.

But building wealth does not always require that sort of excitement.

I think some of the best long-term investments can be companies doing fairly ordinary things, provided they keep doing them well for many years.

Coles Group Ltd (ASX: COL)

Selling groceries is hardly a new business idea.

But that is one reason I like Coles as a long-term investment. Australians need food regardless of which technology trend is dominating the headlines or where we are in the economic cycle.

The opportunity comes from improving a huge existing operation.

Coles has invested heavily in automated distribution and fulfilment centres, which can help move products more efficiently through its network and support the continued growth of online shopping.

Even modest improvements can become meaningful when they are applied across hundreds of stores and millions of customer visits.

I think Coles can continue growing earnings by making its operations more efficient, improving the shopping experience, and serving a gradually expanding Australian population.

Transurban Group (ASX: TCL)

Toll roads are another business that may not generate much excitement, but I think the economics can be attractive over long periods.

This ASX share owns and operates major roads in Australia and North America.

These are pieces of infrastructure used by commuters and businesses every day, often in cities where congestion makes additional road capacity valuable.

Traffic can grow as populations increase, while toll prices generally rise according to agreements attached to each road.

Transurban can also invest in expansions and new projects when suitable opportunities arise.

I think that gives the business a fairly straightforward way to become more valuable over time.

For shareholders, dividends can provide income along the way, while the underlying road network remains difficult for competitors to recreate.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare provides pathology and diagnostic services across several countries. Again, I wouldn’t say there is anything fashionable about this.

Doctors need tests to diagnose illnesses, monitor patients, and make treatment decisions. As populations grow and age, I think the amount of diagnostic testing required over time should increase.

This ASX share has built a large global network of laboratories and medical professionals, allowing it to serve healthcare systems at significant scale.

The company can also continue expanding through M&A, an approach it has used for many years.

For me, this is the sort of business that does not require extraordinary assumptions about the future. If demand for healthcare keeps increasing and Sonic continues operating well, there should be opportunities to grow.

Foolish takeaway

I would never dismiss an ASX share investment simply because the underlying business sounds boring.

Groceries, toll roads, and pathology testing all solve needs that are unlikely to disappear anytime soon.

If a company can keep serving those needs, reinvest sensibly, and increase earnings over many years, shareholders can still end up with an excellent result.

That is the type of quiet compounding I would be happy to have working in my portfolio.

The post Why I think these boring ASX shares could build serious wealth appeared first on The Motley Fool Australia.

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

NEXTDC Ltd (ASX: NXT) has just delivered an FY26 result that strengthens my confidence in its long-term growth story.

The company is investing heavily to meet rising demand for data centre capacity, and artificial intelligence is giving that opportunity another powerful push.

For me, the latest numbers support a buy.

The forward order book is the standout

I think the most important figure in NEXTDC’s FY26 result was not revenue or profit.

It was the 565MW forward order book, up sharply over the year. This represents contracted capacity that has not yet started billing, and every megawatt is backed by a binding customer commitment.

I think this gives investors much better visibility over where growth can come from next.

NEXTDC expects 197MW of that capacity to begin billing in FY27 and another 221MW in FY28. Together, that would convert almost three-quarters of the current forward order book within two years.

The company estimates its existing contracted utilisation could eventually generate more than $1 billion of EBITDA, without assuming any additional customer wins.

For me, that shows just how much growth is already locked into the pipeline.

Artificial intelligence is changing the scale of demand

The artificial intelligence (AI) boom is a major reason I think NEXTDC can keep growing beyond those existing commitments.

Training and running advanced AI models requires enormous amounts of computing power, which in turn creates demand for data centres capable of handling high-density workloads.

NEXTDC says AI, cloud providers, hyperscalers, and newer specialised cloud operators are all contributing to strong demand. Its facilities are being designed for advanced computing environments, including the higher power densities and cooling requirements associated with AI infrastructure.

This is not simply a case of hoping AI demand eventually arrives. NEXTDC’s contracted utilisation has already climbed to 740.1MW on a pro forma basis, more than triple the level a year earlier.

I think that provides tangible evidence that customers are committing significant capital to this infrastructure now.

FY27 could show the next step

Management expects FY27 net revenue to rise by 52% to 58%, while underlying EBITDA is forecast to increase by 55% to 65%.

Those are substantial growth rates for a company already operating data centres across Australia and expanding internationally.

There are risks. NEXTDC expects to spend between $5.25 billion and $5.75 billion in FY27, making execution, financing, construction, and access to power important areas to watch.

But much of that spending is being directed towards capacity customers have already contracted.

Foolish takeaway

I would buy NEXTDC shares following the FY26 result.

The AI boom is creating enormous demand for computing infrastructure, and NEXTDC now has a record amount of contracted capacity waiting to become revenue.

The investment will require patience as the company builds that capacity, but I think the scale of the opportunity has become much clearer.

If NEXTDC delivers on its current pipeline and keeps winning AI-related demand, I believe it could be a considerably larger business by the end of the decade.

The post Would I buy NEXTDC shares after its strong FY26 results? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

A new report from Global X has identified that Australian investors have used gold’s recent pullback as a buying opportunity. 

After record outflows from Australian gold-related exchange traded funds in June, local investors changed course in July. 

Gold has long been a safe-haven asset for Australian investors, which contributed to its boom over the course of 2025 and into 2026. 

According to the report, investors allocated a combined $334 million to gold bullion and gold miners ETFs during the month, making it the fourth-strongest month on record for the combined category.

Why has gold rallied?

According to Global X, the reversal suggests investors viewed the weakness as an opportunity rather than a reason to abandon gold. 

Gold climbed above US$4,600 an ounce this week, reaching a three-month high, while Bitcoin rallied towards US$77,000. Both moves accelerated after the US Treasury announced that it would at least double the maximum size of selected buyback operations for longer-dated government securities, from US$2 billion to at least US$4 billion per operation.

These operations allow the Treasury to repurchase older, less actively traded bonds, helping improve liquidity in the market. They are not the same as the US Federal Reserve printing money or launching quantitative easing, nor do they eliminate the government’s debt burden.

Gold can appeal in this environment because it is scarce, globally recognised and not issued by a government.

Not a unique situation 

This behaviour is not unique to precious metals. 

Australian investors have repeatedly demonstrated a willingness to invest during market weakness when they believe the long-term case remains intact. 

A similar pattern emerged in Australian technology stocks between October 2025 and April 2026, when concerns about artificial intelligence disruption contributed to a decline of more than 40%. Investors continued adding exposure through the drawdown.

That same “buy-the-dip” mentality now appears to be extending to gold.

How to invest in gold?

For investors looking to add exposure to gold in their portfolio’s, there are several options. 

One strategy is to target specific gold miners. 

Some popular options include: 

• Newmont Corporation (ASX: NEM) – One of the largest gold mining companies in the world. 
• Northern Star Resources Ltd (ASX: NST) – Large mining company with projects in Australia and the United States.

Another option is to target ASX ETFs that track the price of physical gold. 

One such fund is the Global X Physical Gold (ASX: GOLD) fund. 

It aims to deliver a return mirroring the growth in the Australian dollar gold price. 

Another option that targets miners rather than the physical gold price is the BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS). 

It targets the largest global gold mining companies (ex-Australia). 

The post Why gold stocks have regained their shine: Expert appeared first on The Motley Fool Australia.

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• 2 ASX 200 shares I’d buy and 2 I’d avoid amid a surging Aussie dollar

Motley Fool contributor Aaron Bell 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.

ASX shares could face a tougher road ahead as record US government debt adds to concerns about a potential market correction. While nobody can predict exactly when the next crash will strike, history shows that sharp sell-offs are simply part of investing.

The good news? Investors don’t need to predict the next downturn to prepare for it. Rather than trying to time the market, investors can take a proactive approach by stress-testing their portfolios and asking whether they’re ready for a serious sell-off.

Here are five questions worth asking now.

Could you survive a 30% downturn?

Market crashes are part of investing. They may feel rare when markets are rising, but sharp sell-offs happen with surprising regularity. Investors only need to look back to 2020 for a reminder: the S&P/ASX 200 Index (ASX: XJO) plunged around 30% between January and March as the COVID-19 pandemic sent markets into a tailspin.

The next crash could look completely different, and nobody knows when it will arrive. But investors in ASX shares don’t need to predict the next downturn to prepare for it.

Imagine opening your portfolio tomorrow and discovering it has fallen 30%. Would you panic and sell? Or would you be comfortable holding through the volatility?

Now take it a step further. What would a 50% decline mean for your portfolio? These aren’t just theoretical questions. A major market sell-off can be brutal, and investors who aren’t prepared emotionally may make costly decisions at exactly the wrong time.

If a 30% or 50% decline would force you to sell ASX shares, it may be worth reconsidering your portfolio’s risk level before a crash happens.

Is your portfolio too concentrated?

Diversification can be one of an investor’s best defences against company-specific and industry-specific shocks.

Ask yourself: how much of your portfolio is tied to a handful of blue chips like BHP Group Ltd (ASX: BHP) or Commonwealth Bank of Australia (ASX: CBA), sectors or themes? Owning several ASX shares doesn’t necessarily mean you’re diversified if they’re all exposed to the same economic forces.

A portfolio spread across different companies, industries and asset classes may be better positioned to withstand a downturn.

Do you have an emergency cash buffer?

A market crash is particularly painful if you need to sell shares to pay unexpected bills. That’s why an emergency fund can be just as important as the investments themselves.

Having cash set aside for essential expenses could give investors the flexibility to leave their portfolios alone when markets are falling.

Will you be ready to buy ASX shares?

A crash isn’t only a threat. It can also create opportunities. Quality businesses can become significantly cheaper when fear takes over.

But investors need capital available to take advantage of those opportunities. If every dollar is already invested or tied up elsewhere, it becomes much harder to act when attractive ASX shares go on sale.

Are you prepared now?

Nobody knows when the next market crash will arrive — or how severe it will be.

That’s precisely why preparation matters. Investors who know their risk tolerance, maintain sensible diversification, keep an emergency cash buffer and have a plan for deploying capital may be better equipped to withstand the next downturn.

The goal isn’t to predict the crash. It’s to make sure you’re ready when it comes.

The post Could ASX shares crash? 5 questions every investor should ask now appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.