Category: Stock Market

The News Corporation (ASX: NWS) share price will have plenty of eyes on it today after releasing its first-quarter results for FY22.

Prior to the market opening, the media giant is residing at a price of $31.70. Investors will be watching to see how the market stomachs the company’s growth figures.

Here’s what we know.

Solid quarterly puts the News Corp share price in focus

• Revenue increased 18% year-on-year to $2.5 billion
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 53% to $410 million
• Reported earnings per share (EPS) of 33 cents compared to 6 cents in the prior year
• Dow Jones media segment recorded its highest quarter revenue and profitability since acquisition
• Digital real estate services segment revenue up 47% year-on-year to $426 million
• Approved a $1 billion share buyback program

How did the company perform?

It was a solid quarterly result for News Corp by nearly all accounts. In fact, the period represented the most profitable quarter for the company since its relaunch in 2013.

All operational business segments recorded revenue growth compared to the prior corresponding period. Although, some more so than others. Namely, digital real estate services reported a 47% increase year-on-year to $426 million. Similarly, book publishing revenue grew by 19% to $546 million in Q1 FY22.

The solid performance from the digital real estate services segment was mostly credited to News Corp’s 61% interest in REA Group Limited (ASX: REA). Australia’s top property site for real estate notched up an additional $94 million in revenue in the quarter, up 62%.

While the subscription video services segment dramatically increased its EBITDA, revenue increased a marginal 3% to $510 million. All in all, News Corp’s revenue in Q1 totalled $2,502 million, representing an increase of 18%. This impressive growth will likely have investors paying attention to the News Corp share price today.

During the quarter, the company also announced a share buyback program worth $1 billion. According to today’s release, News Corp expects to begin executing this program after its quiet period ends next week.

What did management say?

Commenting on the successful quarter, chief executive Robert Thomson stated:

I am pleased to report that the first quarter of Fiscal 2022 was the most profitable of its kind since the re-launch of News Corp in 2013, building on the trends evident in the last financial year. Revenues for the quarter were $2.5 billion, an increase of 18 per cent, while our profitability rose by a hefty 53 percent.

Dow Jones achieved stronger profitability than any first quarter in its 140-year history. We look forward to completing the acquisition of OPIS, which will enhance our fast-growing professional information business. Recent events have highlighted the importance of intelligence about energy and carbon markets, and we fully expect to emerge as a world leader in that area.

Despite the positive results, the release did not contain any details relating to News Corp’s outlook.

The News Corp share price is up 37% year-to-date.

The post News Corp (ASX:NWS) share price in focus as first-quarter delivers growth appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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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

Shares of Tesla (NASDAQ: TSLA) have soared 60% in the last month, and that momentum continued on Thursday. The stock is up another 1.7% as of 2:10 p.m. EDT. The surge in the stock comes even as the framework of President Biden’s Build Back Better bill only includes incentives for buying electric vehicles (EVs) at unionized shops, which wouldn’t include Tesla.

So what

But Elon Musk has been on Twitter recently stressing that Tesla’s EV business has much more demand than production capacity already. That, in itself, is a good problem to have. Some investors may also be looking beyond EV sales for growth in Tesla, too. And as it is currently written, the Build Back Better legislation could help Tesla grow in its areas of focus beyond just electric cars.

Now what

It may not get as much press, but Tesla also sells solar panels, solar roofs, and battery storage systems. And the company’s energy business should contribute more to Tesla’s growth going forward. In its recently reported third-quarter financial report, Tesla reported that its solar power and solar storage deployments grew 46% and 71%, respectively, year over year.

If Biden’s agenda does get passed, it could provide incentives that drive further growth in Tesla’s energy business. The bill calls for rebates for “qualified electrification projects.” Those include home and multi-family building rebate programs as well as energy efficiency and renewable energy projects that “may include a combined heat and power, microgrid, or energy storage component.”

While most investors focus on Tesla’s growth in electric-vehicle sales, its energy business is already expanding, and if a bill calling for federal incentives passes, that growth could accelerate. That might also be a reason why Tesla shares continue to have upward momentum. 

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

The post Why Tesla stock continues to run appeared first on The Motley Fool Australia.

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Howard Smith 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 Bruce Jackson.

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

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The Rio Tinto Limited (ASX: RIO) share price has continued to tumble over the past month followed by weak investor sentiment.

On Thursday, the mining giant’s shares sank a further 1.54% to close at $88.32. This means the company’s shares have lost about 9% in value during the last month.

What’s going on with Rio Tinto shares?

Investors have been heading for the exits, pushing the Rio Tinto share price to a new 52-week low.

The company released its third-quarter trading update in mid-October, revealing a soft performance and full-year guidance downgrade.

Rio Tinto acknowledged another difficult quarter operationally despite mostly improving key numbers against the prior quarter. Ongoing challenges caused by COVID-19 hampered the company’s production results.

In addition, Rio Tinto slightly reduced production targets on some of its key commodities for 2021.

The news sent Rio Tinto shares backtracking almost 1% on the day. While it may not seem much, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.69% higher to 7,362 points, the third strongest climb in the month.

The company is scheduled to report its fourth-quarter operations review on 18 January 2022.

What do the brokers think?

A number of brokers weighed in on Rio Tinto’s shares after the release of its latest performance report.

Analysts at Macquarie Group Ltd (ASX: MQG) cut their price target by 8.3% to $133.00 for the Rio Tinto share price. Swiss investment firm UBS had a more bearish tone, slashing its outlook by 6% to $79.00.

Credit Suisse also changed it assessment by lowering its rating by 3.6% to $106.00.  It appears the broker is focused on Rio Tinto’s statement about its FY21 guidance.

Rio Tinto share price review

Over the past 12 months, the Rio Tinto share price has fallen around 4% and hit a 52-week low of $88.32 yesterday. When looking at 2021 alone, its shares have plummeted by more than 20% for the period.

Rio Tinto commands a market capitalisation of roughly $32.79 billion with approximately 371.22 million shares outstanding.

The post Why did the Rio Tinto (ASX:RIO) share price go backwards in October? appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Afterpay Ltd (ASX: APT) share price is likely to come under pressure on Friday.

This follows a negative reaction on Wall Street to the release of the third quarter results of Square, Inc (NYSE: SQ).

Why could the Afterpay share price tumble?

The Afterpay share price could tumble today after a pullback in the Square share price overnight following the release of its third quarter update.

As Square is acquiring Afterpay via an all-scrip deal, the value of the takeover price rises and falls with the Square share price.

Investors were selling Square shares in after-hours trade due to its revenue falling well short of analyst expectations during the quarter. Square’s total net revenue came in at US$3.84 billion, down from US$4.68 billion in the second quarter and short of the analyst consensus estimate of US$4.48 billion.

Similarly, Square’s adjusted EBITDA fell quarter on quarter to US$233 million from US$360 million.

What does this mean for the takeover?

At the time of writing, the Square share price is fetching US$235.80 in after-hours trade.

Afterpay and Square have agreed a deal that will see Afterpay shareholders receive a fixed exchange ratio of 0.375 shares of Square Class A common stock for each Afterpay share they hold.

Based on the current Square share price and the latest exchange rates, this equates to a takeover price of $119.43.

This is actually lower than the Afterpay share price of $124.38 at the close of play on Thursday, which doesn’t bode well for today’s trading session. Particularly given how shares will often trade at a discount to the takeover price to account for uncertainties and such events like this.

Though, it is worth noting that after-hours trade often represents a bit of a knee jerk reaction from investors. There’s always a chance that Square’s shares could reverse these declines once the market reopens and brokers have fully digested the result.

The post Afterpay (ASX:APT) share price set to tumble after Square’s shares sink 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. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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One thing the Australian share market is not short of is blue chip shares. But with so many to choose from it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two top blue chip shares that are rated as buys. They are as follows:

CSL Limited (ASX: CSL)

The first blue chip ASX share to consider is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring business and the Seqirus business. The CSL Behring business is the global leader in a plasma therapies industry worth a massive US$30 billion per year. Whereas Seqirus is the number two player in the US$6 billion global influenza vaccines industry.

While COVID-related plasma collection headwinds have been weighing on CSL’s performance, this is only expected to be a temporary headwind. In light of this, investors may want to focus more on the long term, which remains very positive for CSL. This is due to its strong portfolio of life-saving therapies and vaccines and its lucrative research and development pipeline.

Morgans is positive on CSL and currently has an add rating and $324.40 price target on its shares.

Goodman Group (ASX: GMG)

Another blue chip ASX share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties. Many of these properties have exposure to key growth markets such as ecommerce and logistics, which has been a key driver of Goodman’s stellar performance in recent years.

Pleasingly, this strong demand remains today, which led to Goodman upgrading its FY 2022 earnings guidance this week. Instead of 10% growth, the company now expects to deliver operating earnings per share growth of at least 15%.

This went down well with the team at Citi. In fact, the broker still feels this guidance in conservative and that Goodman will outperform it. As a result, Citi has retained its buy rating and lifted its price target to $27.50.

The post 2 buy-rated blue chip ASX shares to boost your portfolio 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. owns shares of and has recommended CSL 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 Bruce Jackson.

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There are some ASX shares that might be able to make both growth and dividends for investors.

Some businesses may have a reputation for growth, whilst other could be known for the dividends they pay.

However, there are a certain group of ASX shares that may be able to provide an attractive combination of both dividends and growth, like these two:

Propel Funeral Partners Ltd (ASX:PFP)

Propel is the second largest funeral operator in Australia and New Zealand. It operates under numerous brands after making a number of acquisitions since it started several years ago.

Death volumes grew by 0.9% per annum between 1990 and 2019. The death volumes are expected to rise by 2.7% per annum between 2019 and 2030, and then rise around 2% from 2030 to 2050. Propel says that the number of deaths is the most significant driver of revenue in the death sector.

In FY21, Propel’s funeral volumes increased by 4.6% to 13,916. The average revenue per funeral rose by 4.3% to $5,917, or 2.8% on the pre-COVID period. Whilst revenue rose by 8.7% to $120.4 million in the financial year, operating net profit grew by 7.6% to $15.3 million.

The Propel dividend was increased by 17.5% to 11.75 cents per share.

The ASX share continues to see organic growth. The FY22 first quarter saw revenue growth of 13%, with the business performing a record number of funerals in a quarter, with total funeral volume growth above 10% year on year.

In mid-September, the business announced more acquisitions totalling $17.6 million, which allowed the business to expand into Auckland and enter Adelaide.

At the current Propel share price, it’s valued at 29x FY23’s estimated earnings with a projected grossed-up dividend yield of 3.7% for FY23.

Ansell Limited (ASX: ANN)

Ansell is one of the world’s leading safety glove makers. It also makes other protective gear like protective body suits.

The ASX share saw enormous demand for its healthcare gloves during FY21. Whilst total sales increased 25.6% to $2 billion, the healthcare division experienced organic growth of 34.8% with volume growth for surgical and life sciences, whilst also benefited from a favourable pricing and mix benefit from exam and single use products.

Ansell’s earnings before interest and tax (EBIT) increased 56% year on year, with the EBIT margin increasing 330 basis points to 16.7%. The EBIT was pushed up by higher production volumes, the pricing and mix benefit, as well as operating leverage. However, the profitability benefits were partly offset by elevated labour and freight costs combined with an increase in inventory provisions.

However, Ansell has said that in the shorter-term for FY22, it is expected that there will be lower demand for areas that most benefited during the onset of COVID-19 like the chemical body production and undifferentiated exam and single use gloves.

Ansell warned that its supply may be disrupted because a number of suppliers and factories had to reduce or close their operations. This could impact sales and lead to consistent freight costs and shipping delays.

The ASX share also recently announced an $80 million greenfield investment over the next three years to build a new manufacturing facility in India. It will have the capability to produce a wide range of products, with an initial focus on surgical and life science gloves for the Indian domestic market and for export.

The Indian move will create “important” diversification in Ansell’s manufacturing footprint and create additional production capacity.

At the current Ansell share price, it’s valued at 13x FY22’s estimated earnings with a yield of 3.25%.

The post 2 ASX shares that could be buys for both growth and dividends appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. and Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Link Administration Holdings Ltd (ASX: LNK) share price will be one to watch on Friday.

Why could the Link share price rocket higher?

The Link share price could rocket higher today after it received a takeover approach.

According to the release, the company has received a conditional, non-binding indicative proposal from private equity firm, Carlyle Group, to acquire Link via a scheme of arrangement.

Carlyle Group has tabled an offer of $3.00 per share plus a pro rata distribution of Link’s shareholding in PEXA Group Limited (ASX: PXA). The latter is valued at $2.38 per share on a look-through basis, bringing the total consideration to $5.38 per share.

This offer represents a 24.2% premium to the Link share price at yesterday’s close, which bodes well for its performance on Friday.

What’s next?

The release notes that the proposal remains subject to a number of conditions. This includes due diligence, the negotiation and execution of transaction documentation, securing debt financing, final investment committee approval from Carlyle, and certain regulatory and other approvals.

The Link Board intends to consider the proposal. This includes obtaining advice from its financial, legal, and tax advisers.

In the meantime, the company has suspended its on-market share buyback. As of yesterday’s close, the company had bought back 23,238,691 shares for a value of ~$101.7 million. This represents just over two-thirds of the $150 million buyback.

As there is no certainty that a deal will be done, Link has advised shareholders that they do not need to take any action in relation to the proposal.

It intends to keep shareholders informed, as required under its continuous disclosure obligations, if there are any material developments in the future.

The post Why the Link (ASX:LNK) share price could rocket higher today appeared first on The Motley Fool Australia.

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• REA Group (ASX:REA) share price on watch after delivering strong Q1 growth
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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. owns shares of and has recommended Link Administration Holdings 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 Bruce Jackson.

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The REA Group Limited (ASX: REA) share price will be one to watch closely on Friday.

This follows the release of the property listings company’s first quarter update this morning.

REA Group share price on watch after strong start to FY 2022

• Revenue up 35% to $264 million (22% excluding acquisitions)
• Operating expenses up 49% to $107 million (13% excluding acquisitions)
• EBITDA jumped 25% to $158 million (24% excluding acquisitions)
• Free cash flow up 20% to $49 million (29% excluding acquisitions)
• National listings up 11% (Sydney down 7%, Melbourne up 79%)

What happened during the quarter?

For the three months ended 30 September, REA delivered a 35% increase in revenue to $264 million and a 25% lift in EBITDA including associates to $158 million. This was driven by growth across all Australian segments, underpinned by an increase in national listings.

The company notes that the Australian residential property market showed resilience during the quarter. After modest declines in July, national listings increased 11% for the quarter, with Sydney down 7% and Melbourne up 79% due to lockdown impacts in the prior period.

Also boosting REA’s financial performance was a rise in Australian Residential revenue from increased depth and Premiere penetration, price increases from 1 July, and continued growth in add-on products.

The release also highlights that its Financial Services segment performed well. Management notes that the Smartline and Mortgage Choice businesses experienced strong growth in operating revenues. This was driven by continued growth in settlements and brokers. It also advised that the Mortgage Choice integration is progressing well.

Another positive is that the Indian market has rebounded following the negative COVID impacts experienced in the second half of FY 2021. REA India achieved strong year on year revenue growth, driven by Housing.com’s core business and growth in adjacency products.

Finally, taking some of the shine off the result was an increase in REA’s costs. This reflects a combination of continued investment to deliver strategic initiatives, which has seen higher headcount and salaries in a tight labour market, and reduced operating costs in the prior period as it navigated through COVID uncertainty.

Nevertheless, the company continues to target positive operating jaws (revenue growth greater than costs growth) in FY 2022, excluding the impact of acquisitions.

Management commentary

REA Group’s Chief Executive Officer, Owen Wilson, commented: “REA has delivered an impressive result given the prolonged lockdowns in Sydney and Melbourne. Our performance reflects the continued value our premium listing products are delivering to our customers, and realestate.com.au’s clear position as the number one place to search, find and finance property.”

“Our teams have made excellent progress across a number of key initiatives including the integration of our Mortgage Choice and Smartline businesses, the roll out of new products such as our Connect offering and our integrated rental applications platform, all of which provide the foundations for continued growth,” he added.

Trading update

Potentially giving the REA Group share price a boost today will be management’s comments on current trading.

It explained: “Residential property market conditions are positive, with high levels of buyer enquiry underpinned by continued low interest rates and healthy bank liquidity. October National residential listings were up 16% YoY, with an increase in Melbourne of 20% and 29% in Sydney.”

Though, the company has warned that growth rates are likely to slow as it cycles very strong prior period listing volumes. It also notes that regulatory measures to slow house price inflation could impact listing volumes.

Nevertheless, the company’s CEO remains positive on REA’s outlook.

“As vaccination milestones are met and restrictions continue to be lifted, we expect property markets across Australia to revert to normal operating settings. Buyers remain out in force and this strong demand is likely to fuel ongoing positive momentum,” concluded Mr Wilson.

The post REA Group (ASX:REA) share price on watch after delivering strong Q1 growth 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 recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Investors may want to know how the Sydney Airport (ASX: SYD) share price performed in October 2021.

The business continues to be impacted by COVID-19 effects. But that’s probably not the main thing that is influencing the Sydney Airport share price.

Sydney Airport share price performance

Over October 2021, the Sydney Airport share price dropped around 0.6%.

Sydney Airport is currently dealing with a consortium of investors that want to buy the Sydney Airport business outright. This consortium, called the Sydney Aviation Alliance, wants to buy the whole business for an indicative price of $8.75 cash per share.

The airport business did grant the consortium the opportunity to conduct due diligence over a four-week period. That concluded in the middle of October 2021. A couple of weeks ago, Sydney Airport said that its boards continue to negotiate the relevant transaction documents with the parties seeking their respective internal approvals over the coming weeks.

If those documents are agreed, the Sydney Airport boards intend to unanimously recommend that investors vote in favour of the proposal if a better offer doesn’t appear and an independent expert concluding that the transaction is in the best interest of securityholders.

While relevant transaction documents remain under negotiation, the Sydney Airport boards note that there is no guarantee that an agreement will be reached.

Over the last five months, the Sydney Airport share price has gone up by around 35%.

Airport passengers

Before the takeover approach, one of the main influencers on the Sydney Airport share price was its regular passenger update.

Total passenger traffic in September 2021 was 42,000 passengers, down 98.8% compared to the same month in 2019. Domestic passengers totalled 23,000 in September 2021, which was down 99% on 2019. There were only 19,000 international passengers that passed through Sydney Airport in September 2021, down 98.6% on 2019.

Sydney Airport noted international and domestic passenger traffic in September continued to be impacted by NSW stay at home orders and ongoing border restrictions.

Looking at the top six nationalities that had travelled through Sydney Airport in 2021 to date, they were these countries in order: Australia, China (including Hong Kong), India, the USA, the UK and New Zealand,

Is the Sydney Airport share price a buy?

The broker Ord Minnett thinks that Sydney Airport shares are a hold, with the price target of $8.75 being the takeover offer price. That means there is a potential upside of around 5%, if the deal goes ahead.

The post Own Sydney Airport (ASX:SYD) shares? Here’s how the share price performed in October appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Bruce Jackson.

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Investors should prepare for a 10% share market correction over the next month, one financial expert has warned.

Global supply chain pressures, rising energy costs and reopening economies have all conspired to keep inflation around for longer than the central banks had hoped.

This has already forced some countries to raise interest rates.

Perhaps the last of the “holdouts” — the Reserve Bank of Australia — this week announced the early abandonment of bond yield curve control.

“Today’s decision is a sure sign interest rates are going to start to rise,” Monash University economics lecturer Isaac Gross said on Tuesday.

“Not today, or even for the rest of this year, but sooner [than] was previously expected.”

And from next month the US Federal Reserve will start doing the same, reducing its balance sheet.

Inflation is running both “hot” and “stickier”

All this uncertainty over interest rates is trouble, according to DeVere Group chief executive Nigel Green.

“Inflation is running hotter and is becoming a bigger issue than most analysts previously expected,” he said.

“The real story for the markets is how the Fed, the world’s de facto central bank, will talk about inflation.”

Green believes that the US Federal Reserve will now abandon the term “transitory” to describe current inflation, and this will rock share markets like the S&P 500 Index (SP: .INX) and S&P/ASX 200 Index (ASX: XJO).

“Inflation appears to be stickier than they had expected. This means that they are likely to have to raise interest rates sooner and/or more aggressively,” he said.

“Therefore, markets are actively pricing in 2 or 3 hikes next year and this could lead to a 5% to 10% market adjustment over the next month.”

Corrections are opportunities for wise folk

Central banks were forced to resort to near-zero interest rates and keep bond yields down when the COVID-19 pandemic first hit last year.

But with economies now running hot, they feel the stimulus has done its job and a gradual transition to more “standard” monetary conditions must begin soon.

In Australia, Gross believes this week was the end of an era.

“We don’t yet know how quickly variable interest rates will start to rise, but given the Reserve Bank has walked away from a battle to defend yield curve control, we do know it’ll be a long time before it even considers doing it again.”

According to Green, his predicted shock to share markets should not trigger panic in long-term investors.

“A market correction will be seen by savvy investors as the first major step towards the likely return to normal monetary policy and they will be seeking out the inherent opportunities that will be presented.”

The post Get ready for a 10% share market correction: expert appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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