Category: Stock Market

In the midst of one of the most uncertain periods in ASX investing we have seen in years in 2022, it can be hard to decide where to deploy one’s capital. The ASX has hundreds of individual shares to choose from, after all.

And with concerns over inflation, rising interest rates, geopolitics and a possible looming recession, throwing more money into the share market can certainly be intimidating right now.

So here is one ASX share I would have no problem buying with $10,000 right now, despite all the uncertainty.

The ASX share I would buy with $10,000 today

Washington H Soul Pattinson and Co Ltd (ASX: SOL), or Soul Patts for short, is one of the oldest shares on the ASX. It even predates Federation, starting out life back in 1872. But today, Soul Patts is not just a pharmacy, as it was back in the 19th century.

The company has morphed into what one could describe as something close to an ASX-listed managed fund. It now holds a massive and diversified portfolio of underlying investments, including many ASX shares.

Today, Soul Patts owns large stakes in a number of quality ASX companies. These include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC) and Brickworks Limited (ASX: BKW).

Thanks to its merger with the old Milton Corporation last year, Soul Patts now also owns Milton’s old portfolio of ASX blue-chip shares as well.

And that’s in addition to a sizeable portfolio of unlisted assets too, such as agricultural assets and swim centres.

So all in all, an investment in Soul Patts is really an investment into this broad underlying investment portfolio. And Soul Patts has the runs on the board to prove it’s a worthwhile long-term investment.

Growth and dividends?

According to its last half-year financial report the company delivered back in January, Soul Patts investors have enjoyed total shareholders returns amounting to an average of 13% per annum over the past 20 years.

Soul Patts is also the only ASX share that has given investors a dividend rise every single year since 2000. So investors have enjoyed both healthy capital returns, and clockwork-like dividend raises consistently over the past two decades.

That’s enough for me to have faith in the management to keep the returns rolling in.

As such, Washington H Soul Pattinson is the ASX share that I would be happiest spending $10,000 on today.

At the current Washington H Soul Pattinson share price, Soul Patts has a market capitalisation of $9.43 billion, with a dividend yield of 2.48%.

The post This is the one ASX share I would spend $10,000 on today appeared first on The Motley Fool Australia.

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More reading

• Here’s why I just bought more Soul Pattinson shares
• Own Soul Patts shares? Here’s what to look out for in FY 2023
• 5 worst ASX energy shares of FY22
• The rise and fall of the Soul Pattinson share price over the past year

Motley Fool contributor Sebastian Bowen 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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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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Flight Centre Travel Group Ltd (ASX: FLT) shares are struggling today, but it is not the only ASX 200 travel share that has been in the red today.

Flight Centre shares are currently trading at $17.12, a 0.23% fall. In comparison, the S&P/ASX 200 Index (ASX: XJO) is falling 0.34% today.

Earlier, the Qantas Airways Limited (ASX: QAN) share price was falling 1.31%, while Webjet Limited (ASX: WEB) shares were down 1.39%. Both shares have retraced to be in the green currently.

Let’s take a look at what is happening at Flight Centre.

More ‘pain’

Flight Centre managing director Graham Turner is predicting that travel pain could continue until “October or November”, and that’s assuming Omicron settles down.

Speaking on the Today Show about recent cancellations and flight delays, Turner said:

It will improve but it’s going to take some time I would suggest six or eight weeks before all of this really settles down and there is going to be pain for domestic travellers in that time.

Turner highlighted that building back the travel industry after two and a half years of having to cut back travel to the bone is “quite difficult”. He said.

There’s just lack of experience, expert staff, pilots, and not only that, obviously this latest COVID wave is meaning there is a lot of absenteeism as well.

Turner said despite delays, lots of changes and quite a few cancellations, most people are getting away to their destination domestically.

Flight Centre upgraded its FY22 market guidance in a release to the market last week. The travel company is expecting a solid rebound in travel demand late in the year. Flight Centre predicts to report an underlying EBITDA loss of between $180 and $190 million. This represents an 11.9% improvement on its initial FY22 market guidance.

Flight Centre share price snapshot

Flight Centre shares have soared 13% in a year, but are 3% in the red year to date.

For perspective, the ASX 200 has lost nearly 7% in a year.

Flight Centre has a market capitalisation of $3.42 billion based on the current share price.

The post Own Flight Centre shares? Here’s why the boss is predicting more pain for the travel sector appeared first on The Motley Fool Australia.

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More reading

• When did Flight Centre shares last pay a dividend?
• These are the 10 most shorted ASX shares
• Why is the Flight Centre share price tumbling 5% today?
• Why Flight Centre, Iress, Nitro, and Perseus shares are dropping today
• ASX 200 midday update: Iress sinks on CEO exit, Flight Centre shares descend

Motley Fool contributor Monica O’Shea 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 Flight Centre Travel Group Limited and Webjet 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 BWP Trust (ASX: BWP) share price is climbing on Wednesday after the real estate investment trust (REIT) reported its full-year FY22 earnings.

The highlight was an 85% increase in net profit to $486.6 million compared to $263.2 million in FY21.

In addition, BWP’s property portfolio gained 14.1%, or $379.1 million, in value over FY22. BWP said the result reflected “the ongoing attractiveness of Bunnings Warehouse properties to investors”.

The REIT declared a final distribution of 9.27 cents per unit payable on 19 August. Total annual distributions for FY22 were the same as FY21 at 18.29 cents.

Based on the BWP share price of $4.29 at the time of writing, this is an annual yield of 4.26%.

BWP share price up as property portfolio gains 14%

BWP reported the following additional results:

• Unitholders’ equity of $2.5 billion and total liabilities of $500 million
• Net tangible assets of $3.87 per unit at 30 June, up 17.6% on FY21
• Final distribution of 9.27 cents includes 0.44 cents per unit of capital profits released from the undistributed income reserve, which is 20% less than FY21
• Weighted average cost of debt (finance costs as a percentage of average borrowings) 2.7%
• Gearing (debt/total assets) was 15.1% at 30 June
• Other operating expenses in FY22 were $8.7 million, up 1.16% on FY21
• Management expense ratio of 0.64% in FY22, up from 0.63% in FY21.

What else happened in FY22?

BWP investment properties raked in an extra $1 million in rental income in FY22. This was largely due to annual rent increases and new leases. Like-for-like rental growth was 3.3% in FY22. The trust granted rent abatements of $300,000 to tenants affected by COVID-19 shutdowns, compared to $500,000 in FY21.

At 30 June, 97.5% of the portfolio was leased. The weighted average lease expiry (WALE) is 3.9 years.

In FY22, Bunnings Warehouse exercised five-year options for its stores in Geraldton (WA), Mornington (VIC), Frankston (VIC), Gladstone (QLD), Greenacre (NSW), Craigieburn (VIC), and Scoresby (VIC).

BWP also agreed to a $12.8 million upgrade of the Lismore (NSW) Bunnings Warehouse property.

The trust’s Scope 2 emissions position at 30 June was net-zero. BWP said this was a result of using “green electricity” and carbon credits. The trust incurs Scope 2 emissions from electricity usage at a small number of properties where the trust has responsibility for power usage.

What’s next?

BWP said inflation, the cost of funding, and future investor demand would influence its performance in FY23 and beyond. Any further COVID-related disruptions and the time and cost of repositioning properties vacated by Bunnings would also have an impact.

The trust relies on the health of the Bunnings network, which is owned by Wesfarmers Ltd (ASX: WES). It therefore also relies on the popularity of home improvement and lifestyle products.

BWP said:

For the year ended 30 June 2022, there continued to be strong investor demand for Bunnings Warehouse properties. This was driven by the low interest rate environment and the search by investors for running yields higher than interest rates, the strong Bunnings financial covenant, and the relative risk of a Bunnings Warehouse investment, compared to other property and other asset classes.

In FY23, BWP said it will be focused on filling vacancies in the portfolio, progressing store upgrades, extending existing leases with Bunnings through the exercise of options, completing market rent reviews, and continuing the rollout of energy efficiency improvements at its properties.

BWP added:

Subject to there being no major COVID-19 or other disruption of the Australian economy, the Trust could expect the distribution for the year ending 30 June 2023 to be similar to the ordinary distribution paid for the year ended 30 June 2022.

BWP share price snapshot

The BWP share price is up 4.63% over the past 12 months. In the year to date, it is up 1.66%.

BWP has outperformed the benchmark S&P/ASX 200 A-REIT Index (ASX: XPJ) significantly. The index is down 7.46% over 12 months and 19.23% lower year to date.

The post BWP Trust share price lifts as net profit soars 85% in FY22 appeared first on The Motley Fool Australia.

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• These 3 ASX All Ordinaries shares hit new 52-week highs on Monday

Motley Fool contributor Bronwyn Allen has positions in Wesfarmers Limited. 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 Wesfarmers Limited. 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 Pinnacle Investment Management Group Ltd (ASX: PNI) share price is soaring today.

Pinnacle shares closed yesterday trading for $10.07 and are currently trading for $11.41, up 13.31%.

This comes after the multi-affiliate investment management firm released its full-year financial results for the 12 months ending 30 June (FY22) after market close yesterday.

Below, we look at the highlights.

Pinnacle share price leaps as profits grow in FY22

• Net profit after tax (NPAT) of $76.4 million, up 14% from $67.0 million in FY21
• Basic earnings per share (EPS) of 40.2 cents, up 5% from 38.2 cents in FY21
• Net inflows of $600 million
• Declared fully-franked final dividend of 17.5 cents per share (cps); total FY22 dividends of 35.0 cps, up 22% from FY21

What else happened during the financial year?

As at 30 June 2022 Pinnacle reported its aggregate affiliates’ funds under management (FUM) stood at $83.7 billion. That was down 6% from the $89.4 billion reported for 30 June 2021.

Aggregate retail FUM increased 4% year on year to $21.1 billion.

The company said retail net inflows over the financial year continued to be positive, noting that the first half of FY22 was much stronger than the second half. H1 saw a record $2.9 billion of retail net inflows, while H2 inflows came in at $700 million. Pinnacle said this was mostly due to broader industry-wide pressure and market dislocation.

The investment manager closed out FY22 with cash and principal investments of $178.2 million. Its facility from the Commonwealth Bank of Australia was extended to $120.0 million and fully drawn down on 30 June 2022.

The Pinnacle share price could also be getting a boost after the company revealed it has plenty of “dry powder” on hand for potential business investment with $90.0 million of that CBA facility invested into liquid funds managed by affiliates “until required”.

What did management say?

Addressing the growth in profits, dividends and EPS that look to be driving the Pinnacle share price higher today, Pinnacle chair Alan Watson said, “Whilst these growth rates are not as high as anticipated earlier in the year, they were unquestionably affected by the market context of current geopolitical tension, war, elevated inflation and sharply rising interest rates”.

Pinnacle’s managing director, Ian Macoun, added:

Following the record retail inflows in the first half of the 2022 financial year, net inflows for the second half fell below our expectations as we confronted difficult market conditions and industry-wide pressures.

We have continued to invest in our distribution capabilities, particularly retail and offshore, to ensure that we are well positioned to continue to grow and broaden our market share. In contrast to the disappointing headline flow numbers, it is pleasing that our average base fees continue to rise, and that the revenue impact of our net flows over the financial year has been significantly positive.

What’s next?

Looking ahead, Watson said, “We plan to continue our strategy of further increasing the diversity of asset classes under management, and the diversity of sources of funds under management, particularly international, and retaining a healthy percentage of funds under management exposed to performance fees, thereby further increasing both the resilience and growth potential of Pinnacle.”

Pinnacle share price snapshot

Despite today’s surge, the Pinnacle share price remains down 27% in 2022, compared to a year-to-date loss of 9% posted by the All Ordinaries Index (ASX: XAO).

The past month has been much better for Pinnacle shareholders, with the stock price up 53% since 4 July.

The post Pinnacle share price surges 13% on 2022 financial year profit growth appeared first on The Motley Fool Australia.

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More reading

• Making money even while stock markets fall
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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Chalice Mining, Damstra, Link, and Pinnacle shares are storming higher

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 positions in and has recommended PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE 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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It hasn’t been a great week thus far for the Appen Ltd (ASX: APX) share price. Appen shares may be up a seemingly-healthy 2.17% to $4.24 a share so far this Wednesday. But the artificial intelligence (AI) share is still down by more than 27% since Friday last week.

The company has also lost a staggering 61% of its value over 2022 thus far and remains down almost 90% from its August 2020 all-time high of over $40 a share.

So the pains of Appen shares this week might provoke some investors to ask ‘what are the insiders doing?’ After all, the moves of the people closest to a company’s operations can be a great insight into what the future might bring for a company.

Perhaps especially so for Appen. Appen has just announced the appointment of a new independent non-executive director in Lynn Mickleburgh. This new position was announced on 29 July and took effect that day.

Well, according to an ASX release yesterday, Mickleburgh hasn’t yet got any skin in the Appen game. The ASX release reveals she holds no Appen shares whatsoever.

So when were Appen’s insiders last buying (or selling) the company’s shares?

Have Appen insiders been buying the company’s shares?

Well, the last ASX notice for an insider transaction came back in May. That showed CEO Mark Brayan being issued with $1.5 million worth of shares, perhaps a component of his remuneration package.

Before that, the last voluntary transaction came from Appen’s non-executive chair Richard Freudenstein. Records show Freudenstein buying just over $100,000 worth of shares back in March.

In the same month, CEO Brayan also picked up more than $700,000 worth of Appen shares. Another non-executive director in Venessa Liu picked up close to $15,000 worth of shares in March as well.

Going off of the Appen share price performance since March, these transactions have probably cost their executors between 30-40% of their original capital on today’s pricing.

So that’s what Appen’s insiders have been doing over the past few months with Appen shares. Not too much buying, one could conclude. But also no selling.

At the current Appen share price, this ASX tech share has a market capitalisation of $523.4 million, with a dividend yield of 2.36%.

The post When were insiders last buying up Appen shares? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Credit Corp, Fortescue, and Santos shares are dropping
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• Appen share price on watch as ‘challenging’ first half dints earnings
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• Why is the Appen share price sinking 15% today?

Motley Fool contributor Sebastian Bowen 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. 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 AVITA Medical Inc (ASX: AVH) share price has shot well into the green in lunchtime trade on Wednesday.

At the time of writing, the company’s shares are 19.88% higher at $2.05 apiece on no news.

In broader market moves, the S&P/ASX 200 Health Care Index (ASX: XHJ) is 0.35% lower so far today.

Let’s check what may be going on.

What’s up with the Avita Medical share price?

It’s been a quiet few months from the regenerative medicine company, although not so much on the charts.

Avita shares have eroded more than 40% this year to date, after gliding from a high of $5.61 on 2 September 2021.

They found a bottom almost a year later at $1.32 on 17 June.

However, the healthcare share has caught a bid since then and now trades more than 42% higher on the month, and up 27% in the past five days of trade.

While there’s been no news from Avita’s end, two things stand out. First, the company is set to report earnings next week on 11 August.

Second is that healthcare shares have been strengthening ever since we rolled into the new financial year.

As seen on the chart below, both the healthcare benchmark index and the Avita share price bounced from lows in late June and have curled up since.

In the absence of any company-specific updates, it stands to reason the share might be attracting buyers on the back of this sector strength.

With Avita due to post earnings next week, investors may also be expecting a strong report from the company.

Either way, it looks a little early to tell if the Avita share price has completely turned the corner. In the last 12 months, it is down 61% and has some catching up to do.

The post Why is the Avita Medical share price tracking 20% higher today? appeared first on The Motley Fool Australia.

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More reading

• Bell Potter names 2 of the best ASX healthcare shares to buy in FY23

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 positions in and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. 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.

What happened

Nasdaq Inc. (NASDAQ: NDAQ), the company that owns the Nasdaq Composite Index and the Nasdaq Stock Exchange, had a better month than the index, according to S&P Global Market Intelligence. 

Nasdaq Inc. returned 18.6% in July, beating the S&P 500, which was up 9.1% for the month, and the Nasdaq Composite, which gained 12.4% in July. The company’s stock is down 15% year to date as of today, beating the Nasdaq Composite, which is down 21% so far in 2022.

So what

The primary catalyst for Nasdaq in July was its second-quarter earnings report, which showed a 10% year-over-year gain in revenue to $1.5 billion and a 6% rise in net revenue to $893 million. In addition, adjusted earnings per share (EPS), taking out gains in the prior year from divestitures, was up 9% year over year to $2.07.

All four of its business segments saw revenue gains, led by Market Technology (solutions for institutional investors in trading and settlement, and financial-crime deterrence, among other areas), which was up 12%.

Corporate Platforms — encompassing index listing services, as well as investor relations and ESG (environmental, social, governance) services — was also up 12% year over year. 

The largest segment, Market Services, which includes revenue from trading on the exchange, was up 11%. Investment Intelligence, which generates revenue from market data and intelligence and licensing its indexes, saw an 8.5% spike in revenue year over year.

The growth of its businesses outside of Market Services gives Nasdaq not only multiple revenue streams and growth opportunities, but also diversity in the types of revenue it generates. The company has increased its amount of recurring revenue from subscriptions, particularly within the Market Technology segment, via its software-as-a-service (SaaS) offerings. Revenue from SaaS rose 12% year over year and makes up 35% of recurring revenue.

Now what

The other big driver for Nasdaq was the finalization of a planned 3-for-1 split. It was first announced in April, and in July it was approved. After Aug. 12, every shareholder will get two additional shares of the stock, currently about $177 per share, for each share they own. The new shares will be given out on Aug. 26, and the stock will begin trading at the new split-adjusted price on Aug. 29.

The idea is to make the stock more accessible to more investors at a lower entry price, thus boosting liquidity. The market reacted to the move with approval, as the price jumped sharply on the news when it came out on July 20. There are a bunch of high-profile stock splits coming on the Nasdaq exchange, and that is generally good for Nasdaq Inc. as it creates more trading activity. 

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

The post Why did the Nasdaq share price rocket 19% in July? appeared first on The Motley Fool Australia.

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More reading

• When were insiders last buying up Appen shares?
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• Metalstech share price soars 11% on ‘milestone achievement’
• Pilbara Minerals share price dips despite upbeat lithium outlook
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nasdaq. 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 Metalstech Ltd (ASX: MTC) share price is lifting into the green in early trade on Wednesday.

At the time of writing, the gold and lithium explorer is trading around 11% higher at 40.5 cents apiece following the release of a company announcement.

Metalstech has caught a large bid today with investors driving the share price higher on a volume nearly 3 times the 4-week trading average.

What did Metalstech announce?

The company announced the results of the scoping study concerning its fully-owned Sturec Gold Mine in Slovakia.

The release notes the study results indicate that “project economics and technical viability are highly encouraging” in the company’s quest to become a low-cost gold concentrate producer.

Projections from the study indicate the Sturec mine could support gold and silver production of around 1 million ounces over an initial mine life of 15 years open cut and 10 years underground.

It also showed plant capacity could reach up to 1.5 million tonnes per annum. Based on the current gold price of US$1,780/oz, Metalstech says the net present value (NPV) of the project is A$512 million.

This is built on the fact mining at Sturec exhibits an operating margin in excess of 267%, the company says.

Speaking on the results, CEO Gino D’Anna said the study brings the “rebirth of one of Slovakia’s historic mining operations”.

“The scoping study has demonstrated potential for a robust mining operation at Sturec with a forecast [all-in sustaining cost] of US$754/ounce and a capital payback period of 2.3 years (post-tax) from first production”, he added.

The Metalstech share price is up more than 122% in the past 12 months, or 40% this year to date.

The post Metalstech share price soars 11% on ‘milestone achievement’ appeared first on The Motley Fool Australia.

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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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The Pilbara Minerals Ltd (ASX: PLS) share price is tracking lower in morning trade on Wednesday.

At the time of writing, the company’s shares are swapping hands at $2.71 apiece, down 1.09%, recovering from an earlier low of $2.62 a share.

Meantime, the broader S&P/ASX 200 Materials Index (ASX: XMJ) is also down 0.3% while the S&P/ASX 200 Index (ASX: XJO) is currently 0.4% lower.

The ASX lithium share released the results of its battery metals exchange (BMX) auction today and this is likely inflecting on the share price.

The company also released its presentation to the Diggers and Dealers Mining Forum, held from 1-3 August. Here are some of the details:

Pilbara Minerals’ value proposition on show

In its presentation, the company provided an overview of the market opportunity. It noted the lithium ‘deficit’ is expected to grow to approximately 1.8 million tonnes at base level.

Moreover, the price of lithium continues to remain strong with spodumene prices still commanding more than US$5,000 per tonne, according to the presentation.

Pilbara Minerals said it produced 377,902 dry metric tonnes (dmt) of spodumene concentrate in FY22 and shipped more than 361,000 dmt in the same period.

As part of the presentation, investors were shown a walk-through of the company’s plans on the way to achieving an output of one million tonnes per annum.

Pilbara Minerals projects “accelerated growth to capture improved demand conditions and increase revenue” in the coming years.

The company also gave an overview of its lithium battery project at a community school in the Pilbara. Here, the company will install a combined 33kW PV [solar photovoltaic] and lithium battery storage system in a partnership with Pacific Energy and the Strelley School.

It is set to provide a renewable energy source to replace diesel usage – currently at approximately 170-180 litres/day.

This will free up cash from the displaced diesel that will then be re-purposed for education, estimated at approximately $15-$25,000 per year.

In the last 12 months, the Pilbara share price has held a gain of more than 38% despite slipping into the red this year to date.

The post Pilbara Minerals share price dips despite upbeat lithium outlook appeared first on The Motley Fool Australia.

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More reading

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• Is the Pilbara Minerals value-add lithium strategy worth its salt?

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1) Overnight, the Dow fell 400 points or 1.2% after senior Federal Reserve officials said it was nowhere near finished with its fight against inflation.

In response, short-term interest rates moved higher, with two-year Treasuries climbing back above 3%. 

Quoted on MarketWatch, Neil Dutta, head of economics at Renaissance Macro Research, opined this perhaps “caps the upside to equity multiples”.

2) Try telling that to PayPal shareholders, of which I am one. 

This morning, after the US market close, even though the payments giant reported second quarter revenue growth of just 9%, the PayPal share price jumped more than 10% higher after saying activist investor Elliott Investment Management is now one of its largest shareholders.

PayPal also raised its forecast for earnings per share for the year to a range of $3.87 to $3.97, putting PayPal on a forward P/E multiple of around 25 times earnings.

In the heady days of cheap money, this was cheap. In today’s interest rate environment, especially for a company that only grew its second quarter top line by 9%, PayPal shares look fully valued. Still, I’m happy to celebrate today’s win. 

3) The S&P/ASX 200 Index (ASX: XJO) has fallen around 0.5% in early Wednesday trade, likely following US markets lower, as commodity stocks weighed on the benchmark index.  

With global equity markets adding roughly 10% in the past few weeks, a period in which the share prices of some of the previously beaten and battered stocks like Megaport (ASX: MP1) and Life360 (ASX: 360) have risen from the dead, perhaps we’re in a holding period in advance of reporting season.

4) In contrast to the US — where the latest inflation print was 9.1% — in light of a less hawkish tone from RBA governor Philip Lowe, some economists are suggesting the next interest rate rise will be a more moderate 25 basis points.

Quoted in the AFR, HSBC chief economist Paul Bloxham said he expects the RBA will pivot to smaller hikes from here as “the cooling housing market, weakening consumer spending and global downturn are set to worsen in the next few months”.

Better news for equity markets, but tougher times ahead for consumers. In these inflationary times, it’s hard to have your cake and eat it.

4) Earnings season is just kicking off here in Australia, with Pinnacle Investment Management (ASX: PNI) quick off the blocks, reporting a 14% jump in full-year profits and a 22% increase in its full-year fully-franked dividend.

Pinnacle reported a rare 6% drop in total funds under management (FUM) as volatile equity markets weighed on the fund manager. 

Still, considering the extreme dislocations investors have experienced, particularly over the past six months, it’s a solid result and a testament to Pinnacle’s diversified affiliate platform. 

The Pinnacle Investment Management share price soared almost 13% higher in morning trade, going some way to offset the near 40% fall from its November 2021 peak. 

In hindsight, like so many companies, as the great bull market neared its peak, it’s clear the Pinnacle share price got ahead of itself.

5) Stating the obvious, it’s been a tough year for most fund managers. Bucking the trend however was the WAM Leaders Ltd (ASX: WLE) investment portfolio. It increased by 9.7% for FY22, handily outperforming the index, which fell 6.5%.

With gross assets of more than $1.5 billion, WAM Leaders is one of the largest listed investment companies (LICs) on the ASX. The portfolio has holdings in many ASX 200 companies, including Commonwealth Bank of Australia (ASX: CBA), BHP Group (ASX: BHP) and National Australia Bank (ASX: NAB).

WAM Leaders trades on a fully-franked dividend yield of 5.3%. It’s good money, even as term deposit rates edge higher.

The post Making money even while stock markets fall appeared first on The Motley Fool Australia.

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More reading

• WAM Leaders share price rises on record year and dividend boost
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• This fund manager just bought more of these 2 ASX 200 blue-chip shares

Motley Fool contributor Bruce Jackson has positions in PINNACLE FPO and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc., MEGAPORT FPO, PINNACLE FPO, and PayPal Holdings. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has recommended MEGAPORT FPO and PayPal Holdings. 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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