I’m a big fan of the Vanguard US Total Market Shares Index ETF (ASX: VTS) as a solid investment for building towards retirement — and for retirees too.
The VTS ETF is one of the largest exchange-traded funds (ETFs) on the ASX and provides investors with exposure to most of the US share market.
Pleasingly, its most significant portfolio holdings are among the world’s biggest and strongest companies, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms and Berkshire Hathaway.
Another attractive feature of this ETF is that its management fee is just 0.03% per annum. This leaves almost all returns generated in the hands of investors, making it one of the cheapest annual fees in Australia.
Here are some more reasons why I think it’s such an effective investment for people in both the accumulation and retirement phases.
Excellent wealth-growing pick
The VTS ETF owns a high-quality group of US tech businesses with globally leading service or product offerings. For example, companies like Microsoft, Nvidia, and Alphabet are leading the charge for the development of artificial intelligence (AI). These US giants have incredible balance sheets, impressive operating profit margins, and long growth runways.
Due to sizeable allocations to those high-performing stocks, the Vanguard US Total Market Shares Index ETF has delivered a hefty average annual return of 14.2% in the five years to April 2024.
Now, we can’t fully rely upon this rate of return in the future, but even if it remains reasonably stable in the years ahead, investors can grow wealth at an impressive rate.
For example, if someone invested $1,000 a month for 20 years and the fund grew at 14.2% per annum, it would be worth $1.1 million after two decades.
This fund has more to it than the top holdings — it actually has 3,719 holdings. That’s an enormous amount of diversification in a single investment.
I also like the sector allocation. Technology makes up around a third of the weighting, which is the industry where many compelling businesses are located. Other sectors in the ASX ETF with double-digit weightings include consumer discretionary (14.1%), industrials (13%), healthcare (11.8%), and financials (10.9%).
Can unlock cash flow for retirees
Investors in retirement are likely seeking income to fund their cash flow requirements.
The VTS ETF isn’t known for dividends â it currently has a dividend yield of around 1.4% because of the generally low dividend yield of the underlying holdings.
However, the ETF can still be a great source of income by crystallising some capital gains. I’ll show you how it can work.
Imagine owning $100,000 of the VTS ETF, and over 12 months, it rises 10% to become worth $110,000. If you sell $5,000, that’s a 5% dividend yield on the original $100,000, and the net value after the sale would be $105,000.
Of course, the stock market can be volatile and shares in the VTS ETF might be lower in some years, so I wouldn’t choose to sell all my gains every year. It’s good to keep some in reserve in case you need an emergency fund. A 4% or 5% yield would be the right balance, in my opinion.
If the VTS ETF keeps delivering good returns, it could provide cash flow for retirees and capital growth.
Should you invest $1,000 in Vanguard Us Total Market Shares Index Etf right now?
Before you buy Vanguard Us Total Market Shares Index Etf shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vanguard Us Total Market Shares Index Etf wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Suzanne Frey, an executive at Alphabet, is a member of The Motley Foolâs board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolâs board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Harrison Butker defended remarks he made during Benedictine College's graduation ceremony.
He encouraged female graduates to forgo professional careers to be homemakers.
A career coach said women should be free to make their own choices without shame.
Harrison Butker isn't apologizing for his remarks suggesting that women should forgo professional careers to become homemakers.
The Kansas City Chiefs player appeared at the Courage Under Fire gala at Regina Caeli Academy on Friday, nearly two weeks after his graduation speech at Benedictine College garnered criticism.
"It is now, over the past few days, my beliefs or what people think I believe have been the focus of countless discussions around the globe," Butker, 28, said in footage shared online. "At the outset, many people expressed a shocking level of hate. But as the days went on, even those who disagreed with my viewpoints shared their support for my freedom of religion."
Harrison Butker spoke at the Courage Under Fire gala.
Cooper Neill/Getty Images
Butker said he's become a polarizing public figure, but didn't waver on his previous stance.
"It's a decision I've consciously made and one I do not regret at all," Butker said.
Butker has weathered criticism following his remarks at Benedictine College, a small Catholic liberal arts college in Kansas, on May 11. While there, he told female graduates they had been told "diabolical lies" before suggesting they were more excited to create a family than go into the workforce.
"How many of you are sitting here now about to cross this stage and are thinking about all the promotions and titles you are going to get in your career?" Butker said. "Some of you may go on to lead successful careers in the world, but I would venture to guess that the majority of you are most excited about your marriage and the children you will bring into this world."
Butker then mentioned his wife, whom he said embraced "one of the most important titles of all: homemaker."
"I say all of this to you because I have seen it firsthand how much happier someone can be when they disregard the outside noise and move closer and closer to God's will in their life," he said.
Women shouldn't be shamed for the path they choose
Phoebe Gavin, a career and leadership coach, told Business Insider that women should have the space and opportunity to determine their future based on their ambitions.
"I am pro-women having choices and women being able to make those choices based on what intrinsically motivates them," Gavin said. "There are some women who are going to choose to embrace motherhood as a primary motivation in their lives, and then there are women who are going to make other choices."
Gavin added some women want both a career and motherhood, while others want neither. None of these choices should be ridiculed, she said.
"There are people who truly believe that is the right decision for them, and if that's what they believe, then I fully embrace, empower, and encourage them to go down that path," she said. "My issue is pushing those sorts of values upon other people."
That's why she takes issue with Benedictine College's decision to choose Butker as a commencement speaker.
Benedictine College.
Benedictine College
"They should have known that he was not the kind of person that they would want to put in front of these grads," Gavin said.
She said it was "challenging" to see young female graduates who had spent at least four years working toward professional careers "being told that they're doing the wrong thing and that they should be doing something else."
Jessica Schaefer, a crisis communications and reputation management expert, echoed Gavin's thoughts. She said commencement speeches are meant to be inspiring, not a platform to share personal opinions.
"As someone who works on a lot of these commencement speeches, it's important that you prepare. The goal is to inspire everyone that's graduating," Schaefer told BI. "It's not a platform for your personal opinion. That's not why you're getting paid to give a commencement speech."
Gavin added that "whatever choice a woman makes, they should be able to make that choice and live without shame."
Since giving his speech, several people have spoken out against Butker and Benedictine College.
The National Football League distanced itself from Butker with a statement praising inclusivity. Teammates Travis Kelce and Patrick Mahomes said they disagreed with Butker's comments but defended his right to voice his opinion.
And nuns from Benedictine College denounced Butker's speech, saying they disagreed with the suggestion that "being a homemaker is the highest calling" for women.
"We sisters have dedicated our lives to God and God's people, including the many women whom we have taught and influenced during the past 160 years," the statement read. "These women have made a tremendous difference in the world in their roles as wives and mothers and through their God-given gifts in leadership, scholarship, and their careers."
Butker and Benedictine College representatives did not respond to a request for comment from Business Insider outside regular business hours.
ANZ Group Holdings Ltd (ASX: ANZ) shares stand among some of the largest companies within the S&P/ASX 200 Index (ASX: XJO). But simply being a big business isn’t enough to appeal to me.
While ANZ shares hold a sizeable weighting in exchange-traded funds (ETFs) such as the Vanguard Australian Shares Index ETF (ASX: VAS) and other popular investment funds, I’m not attracted to the ASX 200 bank share for a few crucial reasons. Let’s take a look.
Strong competition
Ideally, I want to invest in businesses with strong competitive advantages or economic moats.
Competition is stiff in the banking sector, with numerous lenders operating in Australia. On the ASX alone, we have the big players like ANZ, Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Bank of Queensland Ltd (ASX: BOQ) and Macquarie Group Ltd (ASX: MQG).
Not to mention a host of smaller lenders, including Bendigo and Adelaide Bank Ltd (ASX: BEN), Pepper Money Ltd (ASX: PPM), AMP Ltd (ASX: AMP) and MyState Ltd (ASX: MYS).
Thanks to the rise of digital banking, lenders don’t need a national network to be competitive anymore. Macquarie and ING have become sizeable players without branch networks.
Loans appear to have become commoditised, so lenders have seen their margins decline. That trend doesn’t seem to be reversing. Plus, mortgage brokers are now influential players in the market. In my mind, these are long-term headwinds.
In the FY24 first-half result, ANZ revealed that its net interest margin (NIM) had declined. The NIM tells us how much profit a bank makes on its lending (including the cost of funding, such as term deposits).
The ANZ NIM has declined every quarter since the start of FY23, from 2.47% in the first quarter of FY23 to as low as 2.32% in the second quarter of FY24.
High dividend yields aren’t ideal for me
ANZ pays a high dividend yield, which may be ideal for some owners of ANZ shares.
However, as a full-time worker, I’m in the ATO tax bracket, where essentially a third of my additional income is lost to tax. Considering ANZ pays big dividends every year, I’d lose a fair amount of my return.
If my shares generate capital growth, they aren’t taxed until the asset is sold, so that is much more appealing to me. Another benefit of capital growth returns rather than dividend returns is getting a capital gains discount if I hold for more than 12 months.
Weak earnings growth expected
I don’t mind the idea of a high dividend yield if the ASX 200 share’s earnings are expected to rise significantly in the next few years.
However, due to the competitive landscape and low demand for credit amid the high cost of living, I don’t believe ANZ’s earnings will grow much in the next few years.
The broker UBS expects the bank’s FY24 and FY25 net profit after tax (NPAT) of $7 billion and $7.2 billion, respectively, to be lower than FY23’s net profit ($7.4 billion) amid the challenging conditions. It might take until FY26 for ANZ’s net profit to surpass FY23.
If profit isn’t growing, then I don’t think the ANZ share price can sustainably rise much in the next 12 months, which is one of the main reasons why I’m steering clear of buying ANZ shares.
Should you invest $1,000 in Australia And New Zealand Banking Group right now?
Before you buy Australia And New Zealand Banking Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australia And New Zealand Banking Group wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The first ASX share that could be a buy is fashion jewellery retailer Lovisa.
Morgans is feeling very positive about the company’s outlook and sees it as a great long-term pick due to its global expansion plans.
In fact, the broker has previously suggested that “LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand.”
Morgans has an add rating and $35.00 price target on its shares. This implies potential upside of 9% for investors from current levels. It also expects a ~2.6% dividend yield to sweeten the deal further.
Another ASX share that could deliver big returns for investors is NextDC. It provides colocation services to local and international organisations from its growing collection of world-class Tier III and Tier IV data centre facilities across Australia and the Asia-Pacific.
It has been growing at a rapid rate for many years thanks to the insatiable demand for data centre capacity due to the shift to the cloud. The good news is that the artificial intelligence boom is expected drive a third wave of demand. This bodes well for NextDC’s growth over the next decade.
Morgan Stanley is a big fan of the company. It believes the data centre market will more than double in size by the end of the decade.
As a result, earlier this month it put an overweight rating and $20.00 price target on its shares. This suggests potential upside of almost 14% for investors.
Finally, the team at UBS believes that WiseTech Global could be an ASX share to buy.
It is the logistics solutions company behind the CargoWise One platform. This platform is integral to the global logistics industry and used by all the big players.
In fact, strong demand for the platform from industry giants means WiseTech has been growing at a very strong rate in recent years. The good news is that UBS believes this strong form can continue.
Earlier this month, the broker put a buy rating and $112.00 price target on WiseTech Global’s shares. This implies potential upside of 14% for investors over the next 12 months.
Should you invest $1,000 in Lovisa Holdings Limited right now?
Before you buy Lovisa Holdings Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lovisa Holdings Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in Lovisa and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
If you are on the lookout for the dream combination of huge gains and a juicy dividend yield, then it could be worth taking a closer look at the ASX All Ords stock in this article.
That’s because the team at Bell Potter believes that this stock could rise more than 30% over the next 12 months.
In addition, the broker is forecasting very attractive 6%+ dividend yields through to 2026.
Which ASX All Ords stock?
The ASX All Ords stock in question is Regal Partners Ltd (ASX: RPL).
It is a specialist alternative investment manager with approximately $12.1 billion in funds under management.
Regal Partners was formed in 2022 following the merger of Regal Funds Management and VGI Partners. It manages a broad range of investment strategies covering long/short equities, private markets, real and natural assets, and credit and royalties on behalf of institutions, family offices, charitable groups, and private investors.
According to the note, Bell Potter has been pleased with the company’s recent performance and feels it could be outperforming expectations in respect to performance fees. It said:
The first four months have shown strong returns for the majority of the funds in the Regal stable. We consider which funds may be generating a performance fee, both by performance and size. A recent presentation from Regal (23 May) notes that 72% of FUM is at, or within 5% of HWM, compared to 54% at December. The implication is that H1 will show strong performance fees.
We consider six of Regal’s funds and show year to date performance, fund or strategy size and attempt to estimate the size of performance fee that RPL could be generating. We estimate that from these six funds alone RPL could generate performance fees of around $55m (compared to our forecasts of $38m) with particularly strong contributions coming from the PM Capital Global companies, the Regal Australian Small Companies, Regal Tactical Opportunities and RF1 (- which including reinvestment of income is now back above its HWM). Across the entire stable of funds, we could expect the figure to be higher.
Big returns
The note reveals that Bell Potter has reaffirmed its buy rating on the ASX All Ords stock with an improved price target of $4.02.
Based on its current share price of $3.07, this implies potential upside of 31% for investors over the next 12 months.
In addition, the broker is forecasting fully franked dividends per share of 19.7 cents in FY 2024, 18.9 cents in FY 2025, and 21.7 cents in FY 2026. This equates to above-average dividend yields of 6.4%, 6.15%, and 7.1%, respectively.
Overall, the broker feels the market is undervaluing this ASX All Ords stock. It concludes:
As a result of these updates, our NPAT and adjusted EPS forecasts increase by 21.9% for FY24, 3.2% for FY25 and 2.5% for FY26. We adjust our price target to $4.02 (from $3.86 previously). We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. Following the acquisition of PM Capital and Taurus (50%) last year, the firm has shown an acceleration of inflows, strong investment performance and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.
Should you invest $1,000 in Regal Funds Management Pty right now?
Before you buy Regal Funds Management Pty shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Regal Funds Management Pty wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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.
Bendigo and Adelaide Bank Ltd (ASX: BEN) shares have been on form in 2024.
Since the start of the year, the ASX 200 bank stock has risen almost 13%.
To put this into context, a $10,000 investment at the end of last year would now be worth approximately $11,300.
As a comparison, the benchmark ASX 200 index has climbed 1.8% over the same period.
But can this strong run continue or have its shares peaked? Let’s see if Bendigo and Adelaide Bank’s shares are now a buy, hold, or sell.
Where next for this ASX 200 bank stock?
According to a note out of Goldman Sachs this morning, its analysts are calling time on this bank stock’s rise.
The note reveals that the broker has reiterated its neutral rating and $10.51 price target on its shares.
Based on the current Bendigo and Adelaide Bank share price of $10.89, this implies potential downside of 3.5% over the next 12 months.
What did the broker say?
Goldman notes that the ASX 200 bank stock recently held its investor day event.
At the event, the bank reiterated its target of improving its return on equity (ROE) to above its cost of capital. The broker said:
While quantitative detail was lacking in relation to how BEN would seek to improve its ROE to being above its cost of capital, management believes i) improvements would be driven both by higher revenues and lower expenses, and ii) operating expenses will be managed at or below inflation levels.
Our Macro team currently forecasts average annual inflation of 2.8% over the four years to Jun-27. Assuming cost growth in line with inflation, FY27E GS revenues would need to be 13% higher than current GSe to reach a 50% CTI, and would translate to a 31% rise in PPOP. For Visible Alpha (VAe) consensus, FY27E revenues would need to be 17% higher, and would translate to a 41% rise in PPOP.
Neutral rating
Overall, the broker hasn’t seen anything in the investor day update to justify a more positive recommendation on the ASX 200 bank stock. It summarises:
Until we see more evidence that the company can deliver a sustained improvement in its ROE, we are reticent to capitalise the material upside to PPOP that a 50% CTI would deliver to shareholders. Therefore, with the stock implying -3% downside to our A$10.51 target price, in the middle of our A&NZ coverage, we reiterate our Neutral recommendation.
Should you invest $1,000 in Bendigo And Adelaide Bank Limited right now?
Before you buy Bendigo And Adelaide Bank Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bendigo And Adelaide Bank Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
With a new month on the horizon, what better time to consider making some new additions to your income portfolio.
But which ASX dividend stocks could be buys in June? Let’s take a look at two that analysts are bullish on right now. Here’s what they are saying about these income options:
The team at Morgans thinks income investors should be buying this ASX dividend stock in June. It currently has the property company on its best ideas list with an add rating and $5.60 price target on its shares.
In respect to dividends, the broker has pencilled in dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.46, this will mean dividend yields of 4% and 4.5%, respectively.
Morgans thinks that the company’s shares are cheap and deserve to trade on higher multiples. Particularly given its improving outlook. It said:
CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.
Over at Goldman Sachs, its analysts think that this annuities company could be an ASX dividend stock to buy. The broker currently has a buy rating and $7.50 price target on its shares.
As for income, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024, 27 cents per share in FY 2025, and then 28 cents per share in FY 2026. Based on the current Challenger share price of $6.62, this will mean dividend yields of 3.9%, 4.1%, and 4.2%, respectively.
Commenting on its bullish view, the broker said:
CGF is Australia’s largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.
Should you invest $1,000 in Challenger Limited right now?
Before you buy Challenger Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Challenger Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
It certainly has been a tough 12 months for ASXÂ lithium stocks.
During this time, the likes of Arcadium Lithium (ASX: LTM), Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO), Liontown Resources Ltd (ASX: LTR), and Pilbara Minerals Ltd (ASX: PLS), Sayona Mining Ltd (ASX: SYA) have all recorded sizeable declines while the market as a whole has charged higher.
For example, Core Lithium and Sayona Mining shares are both down around 80% since this time last year, whereas IGO and Liontown shares have lost approximately half of their value over the same period.
Investors have been hitting the sell button in response to falling lithium prices. This has been driven by increasing supply of the white metal, particularly in the China market.
But where next for lithium prices? Will they recover to previous levels in the near future? Let’s take a look and see what analysts at Goldman Sachs are forecasting for three widely used lithium types – lithium carbonate, lithium spodumene, and lithium hydroxide.
Lithium prices
Firstly, let’s have a little reminder of what lithium prices were commanding on average in 2023.
Lithium carbonate â China: US$32,694 per tonne
Lithium hydroxide â China: US$32,452 per tonne
Spodumene 6%: US$3,712 per tonne
Now we will take a quick look at the current spot prices of these metals compared to what they were commanding back in January. The current prices are as follows:
Lithium carbonate â China: US$13,012 per tonne (January: US$11,867)
Lithium hydroxide â China: US$9,591 per tonne (January: US$9,899)
Spodumene 6%: US$1,210 per tonne (January: US$1,000)
Forecasts through to 2027
Unfortunately for investors of ASX lithium stocks, Goldman Sachs is not expecting a big improvement in lithium prices in the coming years.
Lithium carbonate â China:
For lithium carbonate, the broker is forecasting the following through to 2027:
2024: US$11.106 per tonne
2025: US$11,000 per tonne
2026: US$13,323 per tonne
2027: US$15,646 per tonne
Long-term: US$15,500 per tonne
Lithium hydroxide â China:
It will be a similar story for lithium hydroxide according to the broker. It is forecasting the following:
2024: US$9,849 per tonne
2025: US$12,500 per tonne
2026: US$14,323 per tonne
2027: US$16,146 per tonne
Long-term: US$15,500 per tonne
Spodumene 6%:
Finally, the broker is expecting spodumene prices to remain in and around current levels for the foreseeable future. It has pencilled in the following for the coming years:
Should you invest $1,000 in Core Lithium Ltd right now?
Before you buy Core Lithium Ltd shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Core Lithium Ltd wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro own Arcadium Lithium shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Sen. Jon Tester of Montana is running in one of the most competitive races in the country.
Jemal Countess/Getty Images for JDRF
The 2024 Senate elections — which will run concurrent with the presidential race — are approaching.
Democrats will have to defend several vulnerable incumbents in swing and GOP-heavy states.
However, the party has held their own in the last three cycles in navigating tough Senate races.
In the 2022 midterm elections, Democrats defied political expectations by holding on to their Senate majority, with every incumbent securing reelection and then-Pennsylvania Lt. Gov. John Fetterman flipping the open seat being vacated by retiring Republican Sen. Pat Toomey.
The upper chamber in January 2023 then shifted from its previous 50-50 split — with Senate control in 2021 and 2022 resting on Vice President Kamala Harris' tiebreaking abilities — to a 51-49 majority led by Majority Leader Chuck Schumer of New York. And despite Arizona Sen. Kyrsten Sinema switching from the Democratic Party to register as an Independent late in 2022, she continues to retain her committee assignments through her former party.
However, the class of senators who were elected and reelected in 2018 — a Democratic wave year that saw several vulnerable red-state members of the party win and lose — will face a challenging map in 2024.
Much of the party's performance will likely be tied to President Joe Biden, who is seeking reelection to a second term.
A major development that boosts the GOP: Sen. Joe Manchin of West Virginia in November 2023 announced that he wouldn't seek reelection in 2024, a major blow to Democrats as he was not only the lone statewide officeholder from the party but the only Democrat who could conceivably have run a competitive race given its conservative lean. The GOP is now in the driver's seat in the Mountain State, which backed Trump over Biden by 39 points in 2020.
In 2024, 34 seats will be up for grabs, including 20 currently held by Democrats, 11 held by Republicans, and three currently held by Independents.
Here are the key states that both parties are set to target:
Rep. Ruben Gallego, a Phoenix-area lawmaker, is seeking the Democratic Senate nomination in Arizona.
REBECCA NOBLE/AFP via Getty Images
Arizona
Sinema's decision to become an Independent gave Democrats jitters while they were still rejoicing Georgia Sen. Raphael Warnock's runoff victory in December 2022, but since then, her decision hasn't impaired the party's ability to move legislation and approve judicial nominations.
Democrats have made major inroads in Arizona in recent years, and the party is aiming to bolster their political ascent in the state by electing Gallego.
On the Republican side, former television journalist Kari Lake and Pinal County Sheriff Mark Lamb are the leading candidates.
Lake, the 2022 gubernatorial nominee who lost to now-Gov. Katie Hobbs, jumped into the Senate race in October 2023 with the endorsement of Trump. While Lake ran a hard-charging conservative campaign two years ago, she has recalibrated her strategy and has sought to expand the GOP tent this year in anticipation of a competitive general election race in the purple state.
Meanwhile, Lamb, a conservative who has pushed for stronger security measures at the US-Mexico border, was the first major Republican to enter the race.
Blake Masters, the 2022 Republican Senate nominee who lost to Democratic Sen. Mark Kelly, is running for the House seat being vacated by GOP Rep. Debbie Lesko after the 2024 elections.
Abe Hamadeh, who was narrowly defeated in the 2022 race for state attorney general, had been mentioned as a potential contender but in October 2023 threw his support behind Lake. He is also running to succeed Lesko in the House.
Maryland
Former Republican Gov. Larry Hogan will face off against Prince George's County Executive Angela Alsobrooks for the seat being vacated by veteran Democratic Sen. Ben Cardin.
Maryland is one of the most Democratic states in the country. The party has hefty majorities in the state legislature and dominates the state's congressional delegation. In the 2020 election, Biden won the state by 33 points. And Gov. Wes Moore easily won the state's open gubernatorial race in 2022.
Hogan's candidacy presents a unique challenge for Democrats. The former two-term governor, one of the most prominent Republican critics of Trump, left office with high marks from Maryland voters. During his two gubernatorial runs, he won over many moderate Democrats and Independents en route to his victories in a state where Republicans are vastly outnumbered.
And Republicans have the financial means to compete in Maryland as they seek to replicate the coalition that gave Hogan eight years in Annapolis.
But Alsobrooks, a former prosecutor, gained substantial name recognition as she campaigned across the state and won a tough Democratic primary against Rep. David Trone, who spent over $60 million of his own money in his unsuccessful bid to secure the party's nomination.
Alsobrooks also benefits from representing the state's second-most populous county and in the primary she performed strongly in Trone's suburban Washington backyard and in the Baltimore area.
If elected, Alsobrooks would be Maryland's first Black US senator.
Rep. Elissa Slotkin is running for the Democratic Senate nomination in Michigan.
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Michigan
Democratic Sen. Debbie Stabenow, a popular lawmaker now in her fourth term, announced in January 2023 that she would not run for reelection in 2024.
Stabenow, the chair of the Senate Agriculture Committee, was most recently reelected in 2018 by 6.5% against now-GOP Rep. John James. (James, the Republican Senate nominee in both 2018 and 2020, is running for reelection to his House seat anchored in suburban Detroit this fall.)
Republicans would very much like to flip this seat, but Michigan Democrats had a banner year in November 2022 — sweeping the top statewide offices and retaking control of the full legislature. Biden is set to compete hard in the state this year, but he continues to face significant intraparty pushback over the conflict in Gaza, an issue that will play heavily in the presidential race and the Senate contest given the state's sizable Arab-American population.
Rep. Elissa Slotkin, a moderate Democrat who represents a Lansing-area swing district that stretches to rural and suburban areas northwest of Detroit, announced in February 2023 that she would enter the Senate race.
Slotkin, a former CIA analyst and the acting assistant defense secretary for international security affairs in the administration of President Barack Obama, is the most prominent elected official to seek the Democratic nomination.
The congresswoman, who was first elected in 2018, said in her announcement video that she would focus on bolstering the middle class "in the state that invented the middle class" if voters send her to the Senate.
Gov. Gretchen Whitmer, Lt. Gov. Garlin Gilchrist II, Michigan Attorney General Dana Nessel, Michigan Secretary of State Jocelyn Benson, Reps. Debbie Dingell and Haley Stevens, and state Sen. Mallory McMorrow all ruled out Senate campaigns.
Businessman Nasser Beydoun is also seeking the Democratic nomination.
A number of Republicans are currently in the race, including former Rep. Mike Rogers, Sandy Pensler, a businessman, and Sherry O'Donnell, a physician and former congressional candidate.
Former Rep. Justin Amash, who voted to impeach Trump in 2019, is also running for the GOP nomination.
Rogers, a former chairman of the House Intelligence Committee who served in Congress for 14 years, offers Michigan Republicans their most formidable candidate to date. But his appeal in a Trump-dominated GOP is untested on a statewide level.
Former Rep. Peter Meijer, one of 10 House Republicans who voted to impeach Trump for his role on January 6, 2021, entered the race in November 2023 but withdrew in April 2024.
Meijer served for one term in Congress and was ousted in a 2022 GOP primary by Trump-backed challenger John Gibbs. Gibbs eventually lost the general election race to now-Democratic Rep. Hillary Scholten.
Sen. Joe Manchin of West Virginia, who will not seek reelection in 2024, with Tester.
Douglas Graham/CQ Roll Call
Montana
Democratic Sen. Jon Tester is a political survivor, having first won in conservative-leaning Montana in 2006 before winning tough reelection contests in 2012 and 2018.
And Tester hopes to keep the streak going, announcing in February 2023 that he'd seek a fourth Senate term in 2024.
Despite the GOP lean of Montana, Tester has built a solid political brand over the years and has been able to appeal to many of the state's Independents and Republicans in past elections. GOP leaders have long coveted this seat, though.
Former Navy SEAL Tim Sheehy, a favorite of Republican leaders in Washington, jumped into the GOP primary in June 2023 and has earned the endorsement of Trump.
Former Montana Secretary of State Brad Johnson is also a candidate in the GOP primary.
Rep. Matt Rosendale, a staunch conservative who lost to Tester in 2018, announced in February 2024 that he'd also run for the seat. The decision was poised to set up a competitive — and potentially bruising — primary with Sheehy. But less than a week after entering the race, Rosendale dropped his bid, citing the headwinds he'd likely face after Trump backed Sheehy.
After Rosendale pivoted to running for reelection to the House, he subsequently withdrew from that race as well.
Nevada
Democratic Sen. Jacky Rosen is running for a second term in office in one of the most competitive battleground states in the country. In 2018, Rosen, then a first-term congresswoman, ousted then-GOP Sen. Dean Heller by 5 points.
In 2024, Rosen will be running for reelection when Nevada, a perennial swing state, will be a top target for both Biden and Trump.
Senate candidates on the Republican side include former US ambassador to Iceland Jeffrey Gunter; Army veteran and businessman Sam Brown; former state lawmaker Jim Marchant; attorney Ronda Kennedy; retired Army Lt. Col. Bill Conrad; retired Air Force Lt. Col. Tony Grady; and real estate broker Stephanie Phillips.
Democratic Sen. Sherrod Brown has cultivated a populist political brand in Republican-leaning Ohio, which has helped him stay in office for three terms.
AP Photo/Mariam Zuhaib
Ohio
Sherrod Brown, who was also elected to the Senate in 2006, is running for a fourth term. He has maintained a strong populist connection with his constituents despite the continued reddening of Ohio, which only 20 years ago was widely seen as the nation's premier swing state.
Republicans view the Ohio seat as one of their biggest targets, but Brown has proven to be an effective candidate adept at winning over Independents and even a slice of conservative-leaning voters.
In March 2024, businessman Bernie Moreno defeated state Sen. Matt Dolan and Ohio Secretary of State Frank LaRose in a hotly-contested GOP primary.
The general election matchup between Brown and Moreno, which could very well determine the Senate majority, is now set to be one of the most expensive races in the country.
Pennsylvania
Democratic Sen. Bob Casey Jr., who was first elected to the upper chamber in 2006, is seeking a fourth term in 2024.
Casey — a former Pennsylvania auditor general and ex-state treasurer who has won all three of his prior Senate races with relative ease — will likely benefit from running in a presidential year when turnout in the Democratic strongholds of Philadelphia and Pittsburgh is poised to be very high.
However, Casey has also generally done well in many of the state's working-class towns and cities, and he could post an electoral performance similar to Fetterman, who dominated in the vote-rich Philadelphia suburbs in 2022.
David McCormick, a businessman who narrowly lost the 2022 Republican Senate primary to Dr. Mehmet Oz, will be the party's Senate nominee in the fall. McCormick, who grew up in the Pittsburgh area, is viewed as a candidate who can potentially bolster the GOP among Independents and suburban voters.
Sen. Ted Cruz of Texas is running for a third term in 2024.
AP Photo/J. Scott Applewhite
Texas
The Lone Star State has been firmly in the Republican column since the 1990s.
Democrats have sought to run more competitive Senate and gubernatorial races in recent years but have largely fallen short by sizable margins, with the notable exception being the close 2018 senatorial contest between then-Democratic Rep. Beto O'Rourke and Republican Sen. Ted Cruz. That year, O'Rourke lost to Cruz by 2.6 points, a result that gave Democrats hope that they could once again win the state in the near future.
Cruz has long been a major foil for Democrats; the conservative lawmaker also ran for president in 2016 before his defeat in the GOP primary to Trump.
In March 2024, Rep. Colin Allred, a former NFL player and civil rights attorney, easily won the Democratic primary over candidates that included state Sen. Roland Gutierrez, state Rep. Carl Sherman, and former Nueces County district attorney Mark Gonzalez.
Republicans point to the conservative tilt of the state in projecting confidence in the race, but they are also cognizant of Cruz's narrow 2018 victory.
Trump is favored to carry Texas in 2024, which would likely boost Cruz, but Allred was first elected to office by appealing to moderates and flipping a GOP-held district in the Dallas area. The congressman could potentially build on O'Rourke's success by making further inroads in suburbs across the state, especially if abortion remains as potent an issue in 2024 as it was in the 2022 and 2023 elections.
Sen. Tammy Baldwin is running for reelection in Wisconsin, a perennial swing state.
AP Photo/Jacquelyn Martin
Wisconsin
Sen. Tammy Baldwin announced in April 2023 that she'd seek a third term in the upper chamber.
While Wisconsin in recent years has been one of the most politically polarized states in the country, Baldwin was able to win over many rural and exurban voters during her 2012 and 2018 campaigns — while also racking up large margins in the Democratic-heavy population centers of Milwaukee and Madison.
Several of the most prominent Republicans who were thought of as potential candidates — including former Gov. Scott Walker, Reps. Bryan Steil and Tom Tiffany, and former Rep. Mike Gallagher — declined to enter the race.
The GOP candidates currently in the race include Eric Hovde, a businessman, and Rejani Raveendran, the chair of the University of Wisconsin-Stevens Point College Republicans.
The water system that fuels Mexico City could run out in a month, an event locals call "Day Zero."
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Mexico City could run out of drinking water by June 26, an event locals call "Day Zero."
Three years of low rainfall and high temperatures have worsened the city's water crisis.
The Cutzamala water system, which provides water to millions, operates now at 28% capacity.
Experts say that Mexico City could run out of drinking water by the end of June, an event locals call "Day Zero."
Mexico City has long struggled to bring water to its millions of residents, but three consecutive years of low rainfall and high temperatures have created a serious emergency.
The Cutzamala water system — a series of treatment plants, reservoirs, and canals that provide water to tens of millions of people — is running dry.
While local politicians downplayed the water crisis for months, several neighborhoods have already seen their water run out, CNN reported.
The Mexican government describes the Cutzamala system as "vital to the lives of millions of Mexicans" living in the Mexico City Metropolitan Area and the Valley of Toluca Metropolitan Area.
The system normally moves about 15 cubic meters of water a second and provides service to about 22 million people. It's now operating at 28% capacity, The Washington Post reported.
Crumbling infrastructure is also contributing to the problem. About 40% of Mexico City's water is lost due to leaky pipes and other issues, the Post reported.
Gabriel Quadri de la Torre, a federal congressman for the Mexico City district of Coyoacán, told the outlet that fixing the pipes would cost billions and that it's "very difficult to think" the city will have the money to pay for it.
With June 26 fast approaching, the city desperately needs rain. But rainfall might cause a "false sense of security," Christina Boyes, a professor at the Center for Economic Research and Teaching in Mexico City, told the Post.
Researchers from the National Autonomous University of Mexico said in a study that intensive water capture, using treated residual water for agriculture, and refilling aquifers with surface water, could save the Cutzmala system, according to Mexico Business News.
The study found that only 75% of farms in the area use irrigated water, and most do not reuse the water when they can. Still, the study's plan would cost an estimated $5 billion, the report says.
Mexico's National Water Commission announced in February that it's working on projects to improve the Cutzamala system and help supplement some of the water it is losing. As part of the action, the Mexico City Water System introduced a plan to improve infrastructure reliability, strengthen programs for private company participation in the water network, and harvest rainwater in schools, the agency said.
