Category: Stock Market

The BrainChip Holdings Ltd (ASX: BRN) share price is surging today despite no new announcements from the company.

At the time of writing, the artificial intelligence (AI) technology company’s shares are up 11.5% to 87 cents.

What’s happening with BrainChip today?

Investors are bidding up the BrainChip share price following a strong rebound across the S&P/ASX All Technology Index (ASX: XTX).

After falling almost 10% in a week, the tech sector is powering ahead by 1.63% to 1,854.5 points today.

In addition, it appears investors are taking advantage of the share price weakness in BrainChip.

It fell to a low of 76.5 cents yesterday, a level not seen since the end of December 2021.

BrainChip shares recorded seven days of consecutive losses from 6 June until yesterday, shedding 30% in value.

Looking on the bright side, BrainChip shares will be added to the S&P/ASX 200 Index (ASX: XJO) from 20 June.

The S&P Dow Jones Indices announced its quarterly rebalance of the S&P/ASX Indices at the beginning of this month.

Most fund managers are required to buy or sell shares within specific indexes such as the ASX 200. With this in mind, investors usually like to take pre-emptive action in buying these shares before being accessible to fund managers.

BrainChip share price snapshot

Despite tumbling in recent times, the BrainChip share price is up 60% over the last 12 months.

Year-to-date it has also fared considerably well in spite of the volatility, up 28%.

The company’s share price reached an all-time high of $2.34 in January 2022 before reversing its incredible gains.

On valuation grounds, BrainChip commands a market capitalisation of around $1.5 billion.

The post BrainChip share price surges 11% as ASX tech stocks rally on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why did the BrainChip share price plunge 12% today?
• Why has the BrainChip share price fallen 16% in a week
• Why BrainChip, Firefinch, Magellan, and Westpac shares are dropping
• BrainChip market cap is ‘not even close to where it can and should be’: CEO
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 S&P/ASX 200 Index (ASX: XJO) is having a fairly decent day today, up 0.44% at the time of writing to just over 6,600 points. But even so, no one can deny it has been a tough time for ASX shares (and investors) of late.

Just in the past week alone, the ASX 200 has lost almost 7% of its value. Year to date in 2022, the ASX 200 is now down by a nasty 12.6% or so.

It’s hard to pin down exactly what has spooked investors so convincingly over 2022 thus far. But it’s almost certain that higher inflation and the higher interest rates that walk hand in hand with it are at least partially responsible.

Backtrack to the start of the year, and no one was really talking about inflation. But now, it is the hottest of topics in the investing world (and perhaps everywhere else too). Just last night, the US Federal Reserve raised American interest rates by an unusually large 75 basis points.

Rising interest rates have another consequence, aside from boosting mortgage repayments. They result in an increase in the interest rates paid by new government bonds.

Government bonds might not be of much interest to many investors. But the ‘risk-free’ rates of return they pay have far-reaching consequences.

Bonds are typically considered safer investments than shares. Thus, if the rate of interest they pay rises, it reduces the appeal of having capital in more risky assets like shares. Thus, it can be summarised that higher bond yields equate to lower shares.

But I’m still sticking with shares.

Why?

Well, the simple answer is that there is no better alternative to growing one’s wealth. No matter what interest rates, the global economy, commentators, or the in-laws are saying and doing, time and time again, shares have proven to be the best long-term investment for building wealth in this world.

Why investing in ASX shares is a no-brainer

Want proof? Every year, exchange-traded fund (ETF) provider Vanguard releases an index chart that plots the returns of major asset classes over a three-decade timespan.

The latest one was released in August last year, which our chief investment officer Scott Phillips went over at the time.

It showed that Australian shares had averaged a return of 9.7% per annum every year since 1991. US shares were slightly higher at 10.8%, while other international shares were slightly lower at 8.3%.

But you know what didn’t beat Australian shares? Australian property. It averaged 8.6% per annum between 1991 and 2021.

Neither did Australian bonds. They fetched an average of 7% per annum.

They say cash is king, but in the game of long-term investing, it is a pauper, with an average return of just 4.6% per annum.

According to Vanguard, $10,000 invested in Australian shares in 1991 would have been worth $160,498 by August 2021. But $10,000 invested in bonds would come up at just $75,807, and in cash, just $38,938.

This stellar return from ASX shares came despite numerous global events and catastrophes. We had the dot-com crash, 9/11, the global financial crisis, the Euro debt crisis, Brexit, and, of course, COVID.

Over this timespan, we also had inflation, high unemployment, market volatility, and more than one recession. And still, ASX shares come out on top, and it’s not even close.

So that’s why I’m sticking with shares. There is simply no better option. So ignore the volatility and focus on what really matters.

The post Despite rising bond yields, here’s why I’ll keep investing in ASX shares appeared first on The Motley Fool Australia.

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More reading

• Market crash: A message from our CIO
• Fed rate rise breaks 28-year record. Will the RBA increase interest rates as aggressively?
• Appen share price rebounds 12%, topping ASX 200 gainers
• ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks
• Westpac says consumer confidence is falling. Could this actually be good news?

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 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 Lake Resources NL (ASX: LKE) share price is charging higher today.

Again.

At the time of writing, the ASX lithium share is up 10.5%.

Lake Resources shares closed yesterday at $1.52 and are currently trading for $1.68.

With those intraday gains factors in, Lake Resources shares are up a phenomenal 566% since this time last year.

What’s moving the Lake Resources share price?

Over the past year, investors have been bidding up most ASX lithium shares.

The strong interest is being driven by the fast-growing EV markets, with lithium a core element in the batteries that make them go.

Today’s leap higher in the Lake Resources share price also looks to be related to the upcoming rebalance among the ASX indexes, including the S&P/ASX 200 Index (ASX: XJO).

That’s important to Lake Resources as the company will be added to the ASX 200 commencing next Monday, 20 June.

Investors look to be getting in ahead of the rebalance with an eye on the pending benefits.

Among those benefits, companies included in the ASX 200 are better researched by analysts and receive more media attention.

Importantly, the Lake Resources share price could benefit as its shares can be bought by funds that are restricted to investing in the larger end of the market. Atop that, ASX 200 index-tracking funds will be adding Lake Resources shares to their holdings.

Rival ASX lithium share Core Lithium Ltd (ASX: CXO) will also be added to the ASX 200 next Monday. Its shares are up 8.2% at the time of writing.

The post Up 566% in a year, Lake Resources share price surges 10% today appeared first on The Motley Fool Australia.

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More reading

• Lake Resources share price defies rout to leap 14%
• Why Australian Clinical Labs, Lake Resources, PolyNovo, and ResApp are rising
• 3 ASX All Ordinaries shares that have surged 300% in the past year
• Why is the Lake Resources share price plunging 6%?
• 3 ASX All Ordinaries shares that had a terrific Tuesday

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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The Greentech Metals Ltd (ASX: GRE) share price boomed this morning before grinding to a halt.

The company’s shares jumped 146% to 35.4 cents before being placed on ice. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 0.86% today.

Let’s take a look at what’s going on at Greentech Metals.

What’s going on at Greentech Metals?

Greentech Metals shares exploded earlier today on the back of strong copper and zinc results.

However, the explorer has since entered a trading halt pending “clarification” of today’s announcement.

Before the trading halt, Greentech Metals reported high-grade copper and zinc mineralisation at the Whundo project. This is located 40km from Karratha in the west Pilbara region of Western Australia.

Assay results showed “broad mineralised zones” with a range of high-grade intercepts at five of the drill holes.

Copper and zinc mineralisation extended beyond the resource envelope. Gold grades of up to 3.34 grams per tonne of gold were also found among the copper zones.

Commenting on the news, executive director Thomas Reddcliffe said:

Results from the initial laboratory assays received to date confirm the high-grade tenor of
copper and zinc mineralisation at Whundo which is at the core of a much broader copper
and zinc mineralised system.

Pleasingly, the Whundo mineralisation carries notable gold grades, which as a credit, further enhances the potential economics of the project.

Greentech Metals will be in a trading halt until the clarification is made. The company expects this to be prior to market open on 20 June.

Greentech Metals share price snapshot

The Greentech Metals share price has jumped nearly 73% year to date, while it has soared 109% in the past month.

For perspective, the benchmark ASX 200 materials index has climbed nearly 2% year to date.

Greentech Metals has a market capitalisation of about $10.8 million based on its current share price.

The post Why did the Greentech Metals share price just explode 146% before being halted? appeared first on The Motley Fool Australia.

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More reading

• Battery-powered! 3 ASX mining shares up more than 50% in 2022

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

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

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

No investor is perfect, and all of us will likely end up making an investment decision we’ll regret in the future. That’s just how it goes. However, there are some mistakes many people have made in the past that you can learn from and avoid. Here are three critical investing mistakes to avoid at all costs right now.

1. Investing without having an emergency fund

Investing is important, there’s no denying that fact. However, what’s more important is having some financial security in case things go awry in your life. That’s why before you begin investing, you should always try to have an emergency fund saved up. To get an idea of how much your emergency fund should be, you should first calculate your monthly expenses. From there, your goal should be to save three to six months worth of expenses.

If you’re single and essentially only responsible for your own livelihood, you can likely get away with having three months of expenses saved up. If you have a family, you’ll want to aim to have at least six months worth saved up, just to be on the safer side.

You never know when life will take a turn. Your car could break down, your house may need a repair out of nowhere, you could suddenly get laid off; whatever the case, having some peace of mind that comes with financial security is invaluable. And you don’t want to be in a situation where you have to sell your stocks to cover these costs because you could either find yourself selling for a loss or exposed to a tax bill.

2. Investing entirely in individual stocks and not index funds

One of the key pillars in investing is diversification. You never want all your eggs in one basket, and you never want the success (or downfall) of your portfolio to depend on too few companies. One of the best ways to achieve diversification is through index funds. Take an index fund like one that tracks the S&P 500, for example. The S&P 500 consists of the largest 500 publicly traded U.S. companies and covers any sector you can imagine. If you invest in an S&P 500 index fund, you’re essentially receiving instant diversification.

If you were to try to achieve the same type of diversification that comes with an S&P 500 index fund, you would have to not only research different industries, their risk factors, and future outlooks, but you would also have to research companies within these industries to determine which ones you want to invest in. That’s a lot of time and effort that, in all honestly, a lot of people don’t have and don’t want to exert.

There are index funds that focus on many different aspects of investing. Whether it’s company size, industry, or ESG objectives, there’s an index fund that can suit your investing needs. Utilizing different index funds can add diversification and help reduce some of the risks in your portfolio.

3. Trying to time the market

Investors may think they can time the market, but the harsh reality is they can’t. You may do it in the short term, but timing the market consistently over the long run is virtually impossible. There’s a reason for the saying, “Time in the market is more important than timing the market.” That’s because it’s true. Instead of trying to time the market, you should take a dollar-cost averaging approach. 

When you dollar-cost average, you invest at set, regular intervals, regardless of the prices of your stocks at the time. Sometimes, you may buy stocks right before prices rise. Other times, you may buy them right before prices drop. Either way, the idea is that you take some of the emotions out of it and stick to your schedule regardless. 

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

The post Avoid these 3 critical investing mistakes at all costs right now appeared first on The Motley Fool Australia.

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More reading

• Up 566% in a year, Lake Resources share price surges 10% today
• Why did the Greentech Metals share price just explode 146% before being halted?
• Do Dusk shares really have a 12% dividend yield right now?
• Market crash: A message from our CIO
• Why is the Global Lithium share price powering ahead by 8% today?

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

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

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It’s been a rough few months for ASX shares. The markets are experiencing something of a rebound today, with the All Ordinaries Index (ASX: XAO) up a decent 0.66% at the time of writing to back over 6,800 points.

But even so, the All Ords remains down by a painful 13.8% so far in 2022. But that’s nothing compared to the woes of Dusk Group Ltd (ASX: DSK) shares.

The Dusk share price is also rebounding today. The candle and fragrance company has bounced a healthy 3.42% so far today and is now going for $1.66 a share.

But that doesn’t quite hide what has been a disastrous year for the Dusk share price. It is still down around 48% in 2022 so far. The company has also lost 22.5% of its value over the past month alone.

But the misfortunes of this company have done something quite notable to Dusk’s apparent dividend yield.

Falling share prices do tend to mean higher starting dividend yields. And after such steep falls over 2022, Dusk shares’ trailing dividend yield now stands at a whopping 12% or so.

What’s more, Dusk’s dividends normally come fully franked. That means this company is sitting on a trailing, grossed-up yield of 17.16%.

Are Dusk shares really offering a 12% dividend yield today?

Well, technically, yes. Over the past 12 months, Dusk has paid out two fully franked dividends of 10 cents per share each. Given Dusk’s share price is only $1.66, this gives the company a trailing yield of 12%.

But can investors expect a 12% yield on their money today if they buy Dusk shares? Well, that’s the $64,000 question.

For this to be true, Dusk has to maintain or increase its dividends going forward. If the company pays out another final dividend of 10 cents later this year, and another interim dividend of 10 cents per share next year, investors can expect that 12% yield that the current pricing gives it.

But is this likely?

According to CommSec, Dusk is predicted to pay out 17.2 cents per share in dividends in 2022. That implies that Dusk’s upcoming final dividend will be 7.2 cents per share, rather than 10.

If that were to be true, it would result in Dusk’s forward dividend yield dropping to around 10.4% rather than 12%.

But CommSec is also predicting that Dusk’s dividends will rise to 20.1 cents per share in 2023, and to 22 cents by 2024.

If that also turned out to be true, it would give Dusk shares a forward dividend yield of 12.1% for 2023 and 13.25% for 2024 on current pricing.

No doubt investors will be hoping this prediction comes to pass. But we shall have to wait and see if Dusk investors indeed get their 12% this year and going forward.

The post Do Dusk shares really have a 12% dividend yield right now? appeared first on The Motley Fool Australia.

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More reading

• Candle in the wind: Why is the Dusk share price down 20% in a month?
• Are these 2 small ASX shares too cheap to ignore?

Motley Fool contributor Sebastian Bowen has positions in Dusk Group 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 recommended Dusk Group 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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Share market volatility stepped up a notch this week, with some big falls on Wall Street, comments from RBA Governor Philip Lowe, and US interest rates taking a big jump.

The ASX had a big fall on Tuesday and was down again yesterday.

So I sat down to record some thoughts on where we are, what I’m expecting, and what I’m doing.

We hope you find them useful.

Just click on the image below to watch the video. And keep your eyes on the (long-term) prize!

Fool on!

The post Market crash: A message from our CIO appeared first on The Motley Fool Australia.

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More reading

• Fed rate rise breaks 28-year record. Will the RBA increase interest rates as aggressively?
• Appen share price rebounds 12%, topping ASX 200 gainers
• ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks
• Westpac says consumer confidence is falling. Could this actually be good news?
• Why ASX 200 shares are charging higher following super-sized US Fed rate hike

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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 Global Lithium Resources Ltd (ASX: GL1) share price is rocketing on Thursday following a drilling announcement from the company.

At the time of writing, the lithium explorer’s shares are up 7.95% to $1.29 apiece.

Global Lithium targets deeper depths at Manna

In its release, Global Lithium announced that drilling contractor, Mt Magnet has mobilised to the Manna Lithium Project to commence work.

Mt Magnet will use its diamond drilling rig to target pegmatites at depths below the reverse circulation (RC) drilling program.

The 4,000-metre program will be Global Lithium’s first diamond drilling campaign at Manna since its acquisition in December 2021.

Just last month, an initial 20,000-metre RC drilling program kicked off at the project by contractor Profile Drilling Services.

Global Lithium has expanded the mobile camp at the site to house the geology team and both drilling contractors.

The results from each of the drilling campaigns will be incorporated into the updated Mineral Resource later this year. Additional metallurgical test work is being planned for Q4 2022.

If the program delivers on its potential, the Global Lithium share price could receive a much-welcomed boost.

The Manna Lithium Project is located 100 kilometres east of Kalgoorlie in the Goldfields, Western Australia. Global Lithium retains an 80% interest in the project.

What did management say?

Global Lithium head of geology, Stuart Peterson commented:

The addition of the Mt Magnet diamond drilling crew to the Manna Lithium Project will enable the Pegmatites to be targeted to a depth that has never been reached before at this project.

The drilling information we gain from this program will enable the Company to look to expand the current lithium resource for the project and provide material for further metallurgical test work.

Mt Magnet is a highly experienced drilling contractor that I have worked with before in large-scale resource drilling programs and I am confident they will deliver this program on budget and schedule.

Global Lithium share price snapshot

Despite today’s gains, the Global Lithium share price has fallen 18% in a week. This comes off the back of 7 consecutive market days of losses followed by a sell-off across the lithium sector.

However, when looking at the past 12 months, its shares are up almost 400%.

Based on today’s price, Global Lithium presides a market capitalisation of roughly $224.56 million.

The post Why is the Global Lithium share price powering ahead by 8% today? appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Global Lithium share price jumped higher today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 launching higher today despite the company’s silence.

It’s only the second session for the entire month of June so far in which the lithium producer has posted a gain. In fact, it’s currently 27% lower than it was at the end of May.

At the time of writing, the Pilbara Minerals share price is $2.16, 5.37% higher than its previous close. Earlier, it hit an intraday high of $2.21, a gain of 7.8%.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.49% right now.

Let’s take a closer look at what might be going on with the ASX lithium share on Thursday.

What’s happening with the Pilbara Minerals share price?

Stock in Pilbara Minerals is regaining some of the ground lost during its disastrous start to the month.

It’s doing so alongside its home sector – the S&P/ASX 200 Materials Index (ASX: XMJ). Right now, the sector is the ASX 200’s fourth best performer, gaining 0.97%.

And ASX lithium shares are helping to boost it higher. The materials sector is currently being led by Pilbara Minerals’ stock, with that of Liontown Resources Limited (ASX: LTR) coming in a close second. It’s up 4.93%.

Gold explorer and producer Ramelius Resources Limited (ASX: RMS) rounds out the sector’s top three performers. It’s gaining 4.15% right now.

Pilbara Minerals’ recent suffering follows from an ASX lithium sell-off event earlier this month, largely brought about by bearish sentiment on lithium from Goldman Sachs.  

But, as my colleague Brendon Lau recently reported, the future could be brighter for Pilbara Minerals than the broker seemingly expects.

Despite such positivity, the Pilbara Minerals share price is still trading 38% lower than it was at the start of 2022. Though, it is swapping hands for 60% more than it was this time last year.

The post Why is the Pilbara Minerals share price surging 5% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Wednesday
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why is the Pilbara Minerals share price down 6% on Tuesday?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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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Overnight, the US Federal Reserve made its biggest interest rate rise in almost 30 years.

The central bank outraised the RBA by increasing rates by a sizeable 0.75%. This took the level of its benchmark funds rate to a range of 1.5% to 1.75%, which is the highest level since just before the COVID-19 pandemic began.

But it won’t be stopping there. The Fed stressed that it is “strongly committed to returning inflation to its 2 percent objective.”

As a result, the Federal Reserve is forecasting a benchmark rate of 3.4% by the end of the year.

Will the RBA increase interest rates as aggressively?

In light of the Fed’s overnight raise and the outlook for further increases in the coming months, investors may be wondering if the RBA will increase interest rates just as aggressively.

Well, unfortunately for borrowers, our central bank looks likely to be increasing rates at a similarly rapid rate.

According to the latest RBA Rate Indicator, which is based on cash rate futures, the market is pricing in an 87% probability of Governor Lowe and his team increasing the cash rate by 65 basis points to 1.5% at the start of next month.

But the central bank will only be warming up at that point. Cash rate futures are pointing to the RBA increasing interest rates at each meeting through to December.

At that point, the market is pricing in a cash rate of 3.895%. That’s an incredible ascent when you consider that the cash rate started the year at a lowly 0.1%. It is also almost half a percentage point ahead of what is expected in the United States.

Time will tell if the RBA increases interest rates as aggressively as expected but I wouldn’t be betting against it in the current environment. These certainly will be interesting times for the ASX 200 index, Commonwealth Bank of Australia (ASX: CBA), and the rest of the big four banks.

The post Fed rate rise breaks 28-year record. Will the RBA increase interest rates as aggressively? appeared first on The Motley Fool Australia.

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

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