Category: Stock Market

On Thursday, the S&P/ASX 200 Index (ASX: XJO) ran out of steam and dropped deep into the red. The benchmark index fell 1.2% to 7,588.2 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to end the week on a positive note following a good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 13 points or 0.2% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.6%, the S&P 500 is up 0.85%, and the NASDAQ is up 1%.

Oil prices sink

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a tough finish to the week after oil prices slumped overnight. According to Bloomberg, the WTI crude oil price is down 2.34% to US$74.07 a barrel and the Brent crude oil price is down 2.1% to US$78.83 a barrel. Traders were selling oil amid optimism over a cease-fire in the Israel-Hamas war.

Pinnacle results

The Pinnacle Investment Management Group Ltd (ASX: PNI) share price will be on watch today after the company released its half year results. The investment management company posted a net profit after tax of $30.2 million. This was down slightly from $30.5 million during the prior corresponding period.

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.3% to US$2,073 an ounce. Strong US jobs data boosted rate cut hopes.

CBA remains a sell

Commonwealth Bank of Australia (ASX: CBA) shares are still a sell according to analysts at Goldman Sachs. This morning, the broker has reaffirmed its sell rating and lowly $82.37 price target. This implies potential downside of 28% from current levels. Goldman believes that “CBA’s consumer banking skew leaves its earnings more exposed to sector wide headwinds.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• History suggests snubbing the ASX 200 at record highs could be a costly mistake — here’s why
• After 8 days of gains and a record high why is the ASX 200 tumbling today?
• Better buy: Westpac or CBA shares?
• 2 ASX 200 dividend shares to buy in 2024 for dependable passive income
• 5 things to watch on the ASX 200 on Thursday

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 Goldman Sachs Group and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. 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.

Electric vehicle, energy, and technology company Tesla Inc (NASDAQ: TSLA) is unique. It made electric cars cool. An eccentric CEO, Elon Musk, leads it. The company has sold clothing apparel with a double meaning, aimed at poking fun at those who doubted it.

But the company’s relationship with shareholders might stand out most of all. It maintains a large shareholder base of individual investors and has already split its stock for them twice.

A new bull market has begun, which could bode well for the share price. Should you be on the lookout for Tesla’s next stock split?

Why do companies split their stock?

Companies split their stock for a couple of reasons. A stock split is when a company divides its stock into a higher number of smaller shares. It’s like cutting a pie into smaller slices so more people can have some.

Suppose you own 10 shares of a stock trading at $100 ($1,000 in total). The company splits its stock 4-to-1, dividing each share into four. Your 10 shares would become 40 shares, trading at $25 each. You still have $1,000 worth of stock but more shares at a lower price per share.

This point is crucial: A stock split impacts the share price because each share represents a smaller portion of the company. Fundamentally, the value of the stock itself doesn’t change. The pie never gets bigger just because you cut it into more pieces.

So, why do companies do it? First, it makes it easier for individual investors to accumulate shares. It also creates some buzz around a company, which may be good for the share price in the short term.

Tesla’s stock-split history

Tesla has split its stock twice. The first time was a 5-to-1 split in 2020, and the second was a 3-to-1 split in 2022:

TSLA data by YCharts

The company has noted two reasons for stock splits. First, it awards stock to employees as compensation, and splitting it into smaller shares helps them manage their stake in the company.

Second, Tesla knows that individual investors heavily support it, and the company wants to ensure the stock remains accessible to them. According to Wall Street Zen, non-insider individuals own roughly 44% of the company’s outstanding shares.

Will Tesla split its stock? Here’s what matters

Today, Tesla stock is trading at just over $180 per share, far from its 52-week high of $299. Tesla didn’t split at roughly $300, so it’s hard to see a split coming without the stock at least hitting a new high.

Investors should focus more on the company’s recent fourth-quarter earnings report, which gave shareholders a glimpse into the short- and medium-term future. Management stated that vehicle deliveries would likely decline in 2024 because Tesla was focusing resources on readying a next-generation vehicle design that it believes could spark its next major growth phase.

The market often doesn’t look very far ahead, so this anticipated production decline could keep shares from new highs despite the broader market recently enjoying its own all-time highs.

What ultimately matters is whether investors believe Tesla will continue to grow and create value for its shareholders over time. Its next-generation platform aside, there’s certainly no shortage of growth opportunities in electric vehicles, energy storage, and artificial intelligence (AI). Tesla’s stock has already returned 11,000% over its lifetime, and the future looks as bright as ever.

If you don’t wish to buy whole shares of the stock today, consider a stock broker that allows fractional shares so that you can invest a fixed dollar amount, regardless of whether the stock splits.

Including Tesla in a long-term-oriented and diversified portfolio could help you enjoy the benefits of investing in several great companies.

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

The post Stock-split watch: Is Tesla next? appeared first on The Motley Fool Australia.

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More reading

• Tesla stock has tanked 27% in 2024: Is it time to buy the dip?
• Tesla share price screeches 6% lower as vehicle growth hits speed bump
• Automation era: Why I’m buying more Tesla shares despite margin decline

Justin Pope 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 Tesla. 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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Offering an 18%, fully franked trailing yield, it’s somewhat hard for me to believe that this star ASX dividend share is down 13% since last March.

The passive income gem in question is ASX coal stock Yancoal Australia Ltd (ASX: YAL).

Much, if not all, of that share price retrace was driven by a sizeable fall in coal prices.

In April 2023, thermal coal was fetching around US$200 per tonne. That’s fallen to around US$120 per tonne today.

This saw the Yancoal share price drop from $6.86 a share on 13 March to its closing price yesterday of $5.97 a share.

But, judging by the miner’s December quarterly update, the 2024 passive income outlook from this shining ASX dividend share looks very solid to me.

The company reported achieving almost 13 million tonnes of saleable coal production over the three months. That’s its best production level in three years.

Management noted that output from Yancoal’s mines improved for the fourth consecutive quarter amid ongoing recovery initiatives across the miner’s operations.

Yancoal also reported that coal prices remain at levels that allow it to “generate robust cashflow“.

Indeed, you’ll be hard-pressed to find an ASX dividend share of a similar size with such a strong balance sheet.

As at 31 December, Yancoal had a cash balance of $1.4 billion. In the December quarter alone, the coal miner added $477 million to its cash balance. And that’s after incorporating operating costs, capital expenditure and monthly tax payments.

So, while there are no guarantees in life or in the world of investing, I’d say the passive income outlook from this dividend gem remains quite strong.

As for the past year…

How much passive income has this ASX dividend share been paying?

The smashing yield we quoted above is, as noted, a trailing yield. This is based on the dividends the ASX dividend share paid out over the past 12 months.

Yancoal paid a final dividend of 70 cents per share on 28 April. Eligible investors will have seen the interim dividend of 37 cents per share hit their bank account on 20 September.

That equates to $1.07 per share of passive income, with potential tax benefits from those franking credits.

At yesterday’s price of $5.97 a share, that sees this star ASX dividend share trading on a 17.9% yield.

Take note, though. While the Yancoal share price is down 13% since last March, the ASX coal stock has already rebounded 16% over the past month.

The post An 18% yield but down 13% since March! Time to buy more of this star ASX dividend share? appeared first on The Motley Fool Australia.

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More reading

• How I’d aim to build a bullet-proof ASX passive income portfolio with just $7,000 in 2024
• Here’s how the ASX 200 market sectors stacked up this week

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.

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Like everything in life, there are some myths that people believe about investing that are holding them back from a wealthier life.

Moomoo market strategist Jessica Amir has helpfully picked out the three most common ones and set out why they shouldn’t stop you from buying stocks right now:

1. ‘It’s too hard’

This could be the most heard excuse for inaction, especially from those who have never bought ASX shares.

Amir argues that this might have been true in the old days when everything was done on paper through human brokers, but it’s now 2024.

“Buying a share is as easy as buying groceries, whether it’s a domestic stock or from overseas,” she said.

“Nowadays, trading fees from brokerages like Moomoo can start from as little as $1, so there’s little financial barrier to investing.”

There are also plenty of free educational resources on the internet to get started, including a host of articles from The Motley Fool’s Education Hub, so there’s no excuse to not invest.

“So don’t be afraid to take the first step — these days, it’s usually a free one!”

2. ‘Now isn’t a good time to invest in the stock market’

We’ve all heard this investing myth before.

When stocks are down, the haters say this citing poor investor sentiment. When stocks are bullish, the critics say this because they think it’s all too expensive.

So when is a good time to invest?

Amir reckons people are missing the point when they talk about ‘good’ and ‘bad’ times to buy shares.

“As the saying goes in the investing world, it’s not about timing the market, but your time in the market.

“The best step to investing is a small one, even if it’s just a hundred dollars you put towards investing into a highly diversified ETF.”

Having said that, she added 2024 was looking bullish.

“The Australian and US share market are at an all-time high and there is plenty of exuberance in booming industries across the globe.

“Interest rates are easing up this year so it’s likely we will see more consumer spending and investors trading, which helps support our share market.”

Amir noted earnings generally declined last year.

“So it may be likely that shares will be bouncing back this year.”

3. ‘There’s too much choice’

There is no satisfying some people. 

Would they rather that there are insufficient choices?

Amir suggests that investors don’t have to complicate the situation by researching deep into microcaps.

There is nothing wrong with blue chip stocks to get started.

“The S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index (SP: .INX) are great places for new investors to start. 

“Not only are you exposed to some of the highest-performing stocks in the share market, but they are regularly managed to stimulate a profit.”

Even amid the volatility last year, you would have done well with well-known large-cap names.

“If you had invested $10,000 into the S&P 500 at the start of January 2023, you would have made over $2,400 by December 2023.”

Amir named iShares S&P/ASX Dividend Opp ESG Screened ETF (ASX: IHD), Russell Inv High Dividend Australian Shares ETF (ASX: RDV) and BHP Group Ltd (ASX: BHP) as some popular names to get started on the ASX.

“BHP continues to make the nation go round, supplying domestic and global products for building iron scaffolds, buildings, cars, and infrastructures.

“With a 5-year growth of 34.7%, it’s no wonder it’s an investment choice often made by superannuation funds, fund managers and sophisticated investors.”

The post 3 popular investing myths BUSTED appeared first on The Motley Fool Australia.

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More reading

• BHP stock and more: 3 ASX commodity titans to watch in 2024
• Got $15,000? How I’d invest for a bulletproof ASX passive-income portfolio
• Why the dividends from BHP shares could surge in 2024
• Buying ASX 200 mining shares? Here’s Citi’s 2024 prediction for the iron ore price
• BHP share price tumbles amid reported $14.8 billion Brazil dam disaster hit

Motley Fool contributor Tony Yoo 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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When looking for ASX stocks to buy, investors are understandably doing so in an optimistic mood.

And that’s why often they concentrate on the potential for upside during analysis more than the downside risks.

However, IML portfolio manager Daniel Moore pointed out how sport shows that reducing errors is crucial.

“Novak Djokovic is, probably, the GOAT [greatest of all time] of tennis. Does he hit more winners than other top players? No, not particularly. But he makes fewer mistakes.”

Last January, on his way to winning the Australian Open, Djokovic hit 20% more winners than his opponents. But it was the fact that his opposition hit 40% more unforced errors than The Joker that propelled him to the trophy.

“Novak’s low error count is a key part of his incredible, enduring success. It might not make him popular, but it makes him a winner,” Moore said on the IML blog.

“Don Bradman, the GOAT of cricket, only hit 6 sixes throughout his storied career – if you don’t hit it in the air, you can’t get caught out.”

This is how you evaluate downside of an ASX stock

So how do you check the downside of ASX stocks before you buy them?

Moore laid out six checks that his team performs:

• Cyclicality of earnings
• Balance sheet
• Management track record
• Financial accounts
• Regulatory risk
• Valuation

Cyclicality refers to whether the earnings are currently on the way up or down. 

Balance sheet and financial accounts sound similar, but are distinct items to check.

The former is whether the business can “withstand a downturn in the economy or might it need to raise equity and so dilute the investments of current shareholders”.

The latter is the question of how transparent management is with its reporting.

“Are there any concerning issues buried deep in the accounts?”

Moore added that the best investors are the ones who can control their “emotions and biases” as much as analytical ability.

“A lot of avoiding big losses is ensuring that you are in control of your own emotions, that you don’t get caught up in the hype. That you don’t fall for fads or FOMO.”

The post 6 ways to check if an ASX stock could lose you money appeared first on The Motley Fool Australia.

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More reading

• Morgans says these ASX dividend shares are buys this month
• Have Core Lithium shares finally reached a bottom now?
• 3 high-yield ASX shares for considerable passive income (7%-plus dividends!)
• History suggests snubbing the ASX 200 at record highs could be a costly mistake — here’s why
• How ASX shares vs. property performed in January

Motley Fool contributor Tony Yoo 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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If you’re on the lookout for ASX dividend shares to buy in February, then read on!

That’s because listed below are two top options that Morgans is feeling bullish on.

Here’s what the broker is saying about them:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first ASX dividend share that Morgans is positive on is the Healthco Healthcare and Wellness REIT.

This real estate investment trust has a focus on hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

This is a nice spot to be in as these properties are relatively defensive and usually in demand whatever is happening in the economy.

Morgans believes the company is well-placed to pay big dividends in the coming years. It is forecasting dividends per share of 8 cents in both FY 2024 and FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.35, this will mean dividend yields of 5.9%.

Morgans has an add rating and $1.67 price target on them.

Universal Store Holdings Ltd (ASX: UNI)

Morgans also thinks that this youth fashion retailer could be an ASX dividend share to buy.

It likes the Universal Store, Perfect Stranger, and Thrills owner due to its positive growth outlook. In addition, its analysts think the company’s shares are “undervalued at a single digit FY25 P/E.”

Another positive is that Morgans is forecasting some big fully franked dividends. It had pencilled in dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store share price of $4.16, this will mean yields of 6.25% and 7%, respectively.

Morgans has an add rating and $4.55 price target on its shares.

The post Morgans says these ASX dividend shares are buys this month appeared first on The Motley Fool Australia.

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More reading

• Buying ASX retail shares? You’ll want to see these numbers
• Get a big income boost from these high-yield ASX dividend stocks
• 2 excellent ASX dividend shares I’d buy with $3,000
• Brokers name 3 ASX dividend shares to buy now
• 2 ASX dividend shares to buy next week

Motley Fool contributor James Mickleboro has positions in Universal Store. 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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There’s no getting away from the fact that Core Lithium Ltd (ASX: CXO) shares have been on an absolute horror run of late.

On Thursday the lithium miner’s shares closed the day at 19.5 cents.

This means that they have lost approximately 83% of their value since this time last year.

To put that into context, a $10,000 investment a year ago would now be worth ~$1,700.

And to recoup those losses, Core Lithium’s shares would need roughly recover by almost 500%. That’s certainly a tall order.

Furthermore, one leading broker believes that its shares haven’t even bottomed yet.

Where next for Core Lithium shares?

According to a recent note out of Goldman Sachs, its analysts have a sell rating and 14 cents price target on its shares.

This implies further downside potential of approximately 28% for investors from current levels.

Goldman thinks Core Lithium’s shares are still expensive despite the huge decline over the last 12 months. It said:

We rate CXO a Sell on: (1) Valuation, trading at a premium on ~1.4x NAV and an implied LT spodumene price of ~US$1,300/t (peer average ~0.9x & ~US$1,070/t), with the lowest average operating FCF/t LCE on a more moderated/deferred production ramp up with risk of deferred mine restart, (2) Potential resource growth/ development now likely longer dated, (3) Ongoing production/development funding risk.

It also worth noting that the broker has updated its earnings estimates to reflect the weak out look for lithium prices.

It is now forecasting the following for EBITDA through to FY 2028:

• $58 million in FY 2024
• $4 million in FY 2025
• $17 million in FY 2026
• $56 million in FY 2027
• $105 million in FY 2028

Overall, it looks likely to be a tough few years for Core Lithium.

In light of this, the broker thinks investors should be buying IGO Ltd (ASX: IGO) shares for their lithium exposure. You can read about that recommendation here.

The post Have Core Lithium shares finally reached a bottom now? appeared first on The Motley Fool Australia.

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More reading

• Where will the bottom be for the scorched lithium price?
• Uh oh! Does this spell more bad news for ASX 200 lithium shares?
• These are the 10 most shorted ASX shares
• Core Lithium shares dive 5% on exploration update
• Core Lithium share price soars 5% as production increases and costs fall

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 Goldman Sachs Group. 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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Reliable and ideally high-yield passive income is the primary goal of income investors, and ASX 200 shares deliver a respectable long-term average dividend yield of about 4%, plus some franking.

But in today’s era of 5.75% savings rates, that just ain’t good enough!

We need to pick some higher-yield ASX shares if we want to beat the no-risk return rate, not to mention stay ahead of inflation, which is currently 4.1% per annum (but falling).

We reviewed the 2024 consensus dividend forecasts for a variety of ASX shares on CommSec to uncover three high-yield options for your consideration.

3 high-yield ASX shares tipped to pay 7% dividends or more

Fortescue Ltd (ASX: FMG)

As published on CommSec, the consensus forecast annual dividend for this ASX 200 mining giant this year is $2.134 per share. This is higher than the 2023 dividend of $1.75 and the 2022 dividend of $2.07.

You can thank high iron ore prices for that!

Let’s see how this translates for ASX income investors purchasing $10,000 worth of Fortescue shares. Based on the current price (at the time of writing) of $29.51, that buys 338 Fortescue shares for $9,974.38.

If we multiply 338 by $2.134, we get a total annual dividend of $721.29. The gross dividend, including 100% franking, equals $1,030.42.

That brings your total gross dividend yield to 10.33%, making this a considerably high-yield share in 2024.

That leaves the savings and inflation rates in the (Pilbara) dust!

Westpac Banking Corp (ASX: WBC)

The consensus forecast annual dividend for Westpac shares in 2024 is $1.424 per share. This is a tad higher than the 2023 dividend of $1.42 and the 2022 dividend of $1.25.

Now for our case study.

Our passive income investors purchase $10,000 worth of this ASX 200 bank share. They pay the current Westpac share price of $23.72, giving them 421 shares at a total cost of $9,986.12.

If we multiply 421 by $1.424, we get a total annual dividend of $599.50. The gross dividend, including the 100% franking, equals $856.43.

That’s a total gross yield of 8.58%, meaning this high-yield share also beats today’s savings and inflation rates.

Ampol Ltd (ASX: ALD)

The consensus forecast annual dividend for Ampol shares this year is $1.995 per share. This is down on the 2023 dividend of $2.50 but higher than the 2022 dividend of $1.61.

Investors who buy $10,000 worth of this ASX 200 energy share at the current price of $36.62 would end up with 273 Ampol shares. Total cost: $9,997.26.

If we multiply 273 by $1.995, we get a total annual dividend of $544.63. The gross dividend, including the 100% franking, equals $778.05.

That brings your total gross dividend yield to 7.78%.

Boom. Ampol is another high-yield dividend share that beats the savings and inflation rates of today.

The post 3 high-yield ASX shares for considerable passive income (7%-plus dividends!) appeared first on The Motley Fool Australia.

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More reading

• Better buy: Westpac or CBA shares?
• 2 ASX 200 dividend shares to buy in 2024 for dependable passive income
• Westpac ordered to pay $10 million after ‘unconscionable conduct’
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Motley Fool contributor Bronwyn Allen has positions in Westpac Banking Corporation. 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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It was a historic day for the S&P/ASX 200 Index (ASX: XJO) yesterday, eclipsing its former record high. The benchmark index trotted upwards to a fresh ceiling of 7,682.30, adding to a smashing three-month stretch for Aussie investors.

The milestone is met with great joy for those who have already jumped aboard the wealth-making equity train. However, the accomplishment might be interpreted differently by people still on the sidelines hoping to take the plunge into stocks.

Like a good pair of R.M. Williams leather boots, waiting for a discount may lead to paying a higher price at a later date.

Unfortunately, the mind can sometimes be bad at understanding value. We tend to only perceive value as a price lower than what we’ve seen before. We assume a new high price represents poor value, even though it might still be a good deal for the product or service.

Let’s make use of history for a more informed interpretation.

ASX 200 at record high, is the market overvalued?

History can be a great teacher. Still, it is important to remember that past performance is not an indicator of future performance. However, it can give us a better picture of what is possible under similar conditions.

Since 1980, the Australian share market has seen its fair share of crashes. But, like clockwork, Australia’s collection of the top 200 listed companies has driven the index to new heights time and time again.

As shown above, once the ASX 200 surpasses its previous record high, the index often marches onwards.

For example, the market tripled in value after clawing back from the damaging 1981 crash. Likewise, Aussie investors relished a 55% gain beyond the freshly set record high that followed the 1987 implosion.

On the flip side, if an investor sold $10,000 worth of shares at the September 1987 high and waited for the index to return to its former high, they’d have missed out on $23,859 in gains to date — excluding the accumulation of dividends.

The reality is that if history repeats itself, there’s rarely a ‘bad time’ to invest, given a long enough time horizon.

Data from prominent exchange-traded fund (ETF) provider Vanguard Australia demonstrates this well. If you had invested at any point in the last 30-odd years, the chance of making a gain within a year was 79%. If the investment period is expanded to 10 years — suddenly, the chance of making a positive return is 100%.

A tactic to remove the guesswork

Price is only one variable of the value equation. A $500 pair of boots that last 10 years offers better value than a $300 pair of boots that fall apart after five years. In other words, the record high of the ASX 200 is meaningless in terms of value without knowing what you’re getting for the price.

Although the price-to-earnings (P/E) ratio of the ASX 200 is at its highest level in two years, it’s still well below the multiples seen around 2016 and 2017. Furthermore, despite those elevated multiples, the ASX 200 continued to climb amid increasing company earnings, as shown below.

So, how does one know when the right time to plunge into shares is? Run to the antique shop and hope to find a crystal ball with magical powers… I’m joking, of course.

The honest answer is there’s no accurate and reliable way of knowing when to buy to avoid a crash. Here’s the kicker, though — if you’re investing for long enough, you’ll likely encounter it regardless.

My approach is to implement dollar-cost averaging. Not only does it remove the stress of investing at a temporary high, but it also benefits a portfolio during crashes by buying more shares for the same amount of money.

This method of buying on a consistent cadence means less time sweating over what a record high for the ASX 200 means and more time enjoying life.

The post History suggests snubbing the ASX 200 at record highs could be a costly mistake — here’s why appeared first on The Motley Fool Australia.

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More reading

• After 8 days of gains and a record high why is the ASX 200 tumbling today?
• 5 things to watch on the ASX 200 on Thursday
• These were the best performers on the ASX 200 in January
• Here are the top 10 ASX 200 shares today
• 3 big questions about the Australian stock market in 2024

Motley Fool contributor Mitchell Lawler 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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Shares vs. property: It’s an age-old debate as to which investment is best, and if you happen to own both and want to monitor the monthly performance of each, we’ve got you covered.

The latest data from CoreLogic reveals the median Australian house price increased by 0.5% in January. That’s up on December’s 0.4% rise but down from the 0.7% growth seen in November.

CoreLogic research director Tim Lawless said house values continued to rise faster than unit values. The price gap between the house and apartment medians rose to a record high of 45.2% in January.

Despite high interest rates and cost-of-living pressures, Lawless said property sales volumes remained elevated due to strong migration (518,000 people net in 2023) and an extremely tight rental market likely incentivising renters to buy.

Recent data from the Bureau of Statistics backs this up. The number of loans written for first-home buyers increased by 20% over the 12 months to November 2023.

Shares vs. property price growth in January

Here is how shares vs. property performed in terms of price growth in the month of January.

Property market	Median house price	Price growth in January	12-month price growth
Sydney	$1,400,630	0.2%	12.5%
Melbourne	$948,041	(0.4%)	3.8%
Brisbane	$875,991	1%	13.3%
Adelaide	$763,606	1.3%	8.6%
Perth	$691,100	1.6%	15.6%
Hobart	$700,810	(0.5%)	(1.1%)
Darwin	$578,741	0.5%	(0.2%)
Canberra	$967,864	0%	1%
Regional New South Wales	$739,067	0.2%	2.4%
Regional Victoria	$598,608	0%	(1.7%)
Regional Queensland	$615,169	0.3%	8.6%
Regional South Australia	$398,915	0.4%	9.6%
Regional Western Australia	$477,690	0.8%	8.2%
Regional Tasmania	$528,046	(0.6%)	(0.2%)
Regional Northern Territory	$446,345	1.8%	(4%)

Source: CoreLogic

Top 5 risers of the ASX 200 in January

The S&P/ASX 200 Index (ASX: XJO) appreciated by 1.18% in January.

According to CommSec data, these ASX 200 shares below were the top risers of the month.

ASX 200 share	Share price growth in January
Boss Energy Ltd (ASX: BOE)	38.21%
Megaport Ltd (ASX: MP1)	38.15%
Paladin Energy Ltd (ASX: PDN)	31.47%
Alumina Limited (ASX: AWC)	28.73%
Elders Ltd (ASX: ELD)	19.26%

Source: CommSec

Check out how ASX shares vs. property performed in 2023 here.

The post How ASX shares vs. property performed in January appeared first on The Motley Fool Australia.

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More reading

• These were the best performers on the ASX 200 in January
• Top ASX shares to buy in February 2024
• Here are the top 10 ASX 200 shares today
• If you’d put $40,000 in this ASX uranium stock 5 years ago, you’d have $600,000 now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen has positions in Alumina. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Elders and Megaport. 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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