ASX lithium shares are charging higher today.

Leading lithium stocks Liontown Resources Ltd (ASX: LTR) is up 4.96% in early afternoon trade and Pilbara Minerals Ltd (ASX: PLS) shares are up 3.61%.

Both ASX lithium companies presented at the Diggers & Dealers Mining Forum in Kalgoorlie, Western Australia, this week.

As attendees heard, the long-term demand outlook for lithium – a lightweight, conductive metal critical in electric vehicle (EV) and home storage batteries – remains very strong amid rapid global growth in EV markets.

This, as the battery metals industry is looking at a US$42 billion funding shortfall to meet that soaring demand, according to Benchmark Mineral Intelligence.

Growing future deficits in lithium supply forecast

According to Pilbara’s presentation at Diggers & Dealers, the expected deficit in lithium by 2040 is the equivalent to some 18 Pilgangooras. The ASX lithium share was referring to its Pilgangoora project, one of the largest hard rock lithium-tantalum deposits on Earth.

It said the forecast deficit comes “with likely pricing implications”.

Lithium prices have already leapt almost 500% since this time last year.

According to Pilbara Minerals CEO Dale Henderson (quoted by Bloomberg), “The appetite is insatiable. Any producer in lithium is very popular at the moment.”

In its presentation, Liontown Resources pointed to research from global consulting firm Boston Consulting Group (BCG). BCG expects overall lithium demand growth of approximately 20% per year from 2020 through to 2035. This will be mostly driven by increased demand for EV and energy storage system (ESS) batteries.

Liontown CEO Tony Ottaviano said (courtesy of Bloomberg):

I don’t want us to come across as self-indulgent because we have immense respect for our customers, but the simple fact is it takes five to eight years to bring greenfield supply online in tier-one jurisdictions.

Ottaviano said that “interest was low” when the ASX lithium share approached car makers and other manufacturers for its first offtake.

“Roll the clock forward and we are seeing a completely different commercial posture,” he added.

How have these two ASX lithium shares been performing?

Over the past 12 months, the Pilbara share price is up 42% while the Liontown share price has gained 74%. That compares to a full-year loss of 7% posted by the All Ordinaries Index (ASX: XAO).

Roll the clock back five years, and these ASX lithium shares have really shot the lights out.

If you’d invested in Pilbara five years ago, you’d be sitting on gains of 689%. As for Liontown, its shares have surged an eye-popping 14,550% in five years.

The post ASX lithium shares facing ‘insatiable’ demand amid global funding gap appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why are ASX lithium shares having such a top run on Wednesday?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why BWP, Lynas, Pilbara Minerals, and Pinnacle shares are charging higher
• Pilbara Minerals share price dips despite upbeat lithium outlook

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.

from The Motley Fool Australia https://ift.tt/mMs7Keo

The Novonix Ltd (ASX: NVX) share price is soaring today on no news from the company whatsoever. There’s no sector momentum to explain the increase either, with the S&P/ASX All Technology Index (ASX: XTX) down 0.6%.

At the time of writing, the Novonix share price is up 11.81% to $3.03.

However, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.43% in the green today, and we know that many ASX shares are starting to rebound off their June lows.

This appears to be because investors are deciding some opportunities are now too good to pass up following the general market sell-off in the first half of 2022.

What’s the latest with the Novonix share price?

So, Novonix has had a screamer over the past month. It’s up 31%. The All Tech index is up 15.4% and the All Ords is also up 6.2% over that period. So, the Novonix share price rise might simply be a case of the stock riding this wave of this new positive market momentum.

As my Foolish colleague Brooke reported, there was only one piece of news released by Novonix in July. That was its report for the June quarter, which caused the Novonix share price to slump 1.6%. The report showed $2.5 million of customer receipts and a $7.9 million operating cash outflow.

But both the broader ASX 200 tech sector and the Nasdaq Composite Index (NASDAQ: .IXIC) had a good month. The NASDAQ lifted by about 12% in July, which was its biggest monthly gain since April 2020.

Bullish comments on the battery materials industry by Tesla Inc CEO Elon Musk were no doubt helpful to Novonix, which operates in the lithium-ion battery space. The Novonix share price rallied 2.8% that day.

A quick recap if you’re unfamiliar with Novonix’s business: Its battery materials segment develops and manufactures battery anode materials. The battery technology segment develops battery cell testing equipment and researches battery development. The tech segment delivers the bulk of Novonix’s revenue.

The post Why is the Novonix share price leaping 12% on Friday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Why did the Novonix share price notch up a 24% gain in July?
• Why is the Novonix share price sliding on Tuesday?
• Here are the top 10 ASX 200 shares today
• Why did the Novonix share price just soar 13%?

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

from The Motley Fool Australia https://ift.tt/IP1ufb6

The Core Lithium Ltd (ASX: CXO) share price is leaping 6% after the company announced that it’s appointed its first CEO.

Former Rio Tinto Limited (ASX: RIO) senior leader Gareth Manderson will take up the reins at the lithium developer on Monday.

The Core Lithium share price is trading at $1.27 on the back of the news. That’s 4.96% higher than its previous close.

Let’s take a closer look at what Manderson can offer the S&P/ASX 200 Index (ASX: XJO) lithium favourite.

Core Lithium unveils new boss

The Core Lithium share price is surging on news Manderson, who offers 28 years of experience in the mining and minerals sector, will take on the top job at the company next week.

It comes after the company’s founding managing director Stephen Biggins announced his resignation in March.

Manderson was previously Rio Tinto’s general manager in sustaining capital where he focused on the company’s Pilbara operations.

He has also held senior leadership roles in Rio Tinto’s aluminium division and management roles at Energy Resources Australia in the Northern Territory.

Core Lithium chair Greg English commented on Manderson’s appointment, saying:

There are many synergies between Gareth’s previous senior roles in managing complex mine, mineral processing, port, township, and logistics operations during his tenure at Rio Tinto and the Finniss Project.

Gareth’s previous Northern Territory experience and managing the effects of the annual wet season will also be essential as we plan to be operating in this environment for years to come.

Manderson said he is “delighted” to have been offered the top job at “this vital time in the company’s growth”.

He will receive an annual base salary of around $693,000 before super, as well as both short and long term incentives.

Core Lithium share price snapshot

Today’s gains included, the Core Lithium share price has doubled since the start of 2022.

The company’s stock has lifted 102.4% since its first close of the year, which saw it trading at 63 cents.

It has also gained 298.4% since this time last year when it was worth just 32 cents.

The post Core Lithium share price leaps 5% as industry veteran takes reins appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Core Lithium share price jet 20% higher in July?
• Why Core Lithium, Deterra, Panoramic, and Qualitas shares are racing higher
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why has the Lake Resources share price rocketed 16% today?
• Core Lithium share price surges 4% on ‘exceptional’ drill results

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 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.

from The Motley Fool Australia https://ift.tt/5chXqOP

Dollar-cost averaging (DCA) is a popular method of investing. It takes the ‘when should I invest?’ question out of the equation. It does so by using a consistent pattern of investing to achieve a smooth cost base over time.

For example, a simple dollar-cost averaging strategy would involve an investor consistently investing say, $500 a month, into an investment, regardless of its pricing. This ensures that you get an ‘average’ entry price over time, negating the need to worry about ‘buying at the top’.

Investors can use a DCA strategy on almost anything, including index funds and individual shares. And yes, even cryptocurrencies like Bitcoin (CRYPTO: BTC).

A DCA strategy is arguably well-suited to an asset like Bitcoin. Bitcoin is, of course, infamously volatile. In just the past year, it has traded as high as US$67,500 and as low as US$19,000.

Rather than dealing with those kinds of extremes, investors who use a DCA will instead bypass this volatility to a degree, and put their investment on ‘autopilot’.

But is a dollar-cost averaging strategy really a good idea for something like Bitcoin?

When to use a dollar-cost averaging strategy for Bitcoin

Well, at least one expert investor thinks so. According to reporting in The New York Times, Cory Klippenstein has some newfound crypto fame. He reportedly became a bit of a name in the crypto world when he called out the “scam” of cryptocurrency Terra (CRYPTO: LUNA). Luna sensationally crashed earlier this year.

Klippenstein runs a Bitcoin company called Swan Bitcoin. It is built on his ‘Bitcoin maximalist’ faith that one day the cryptocurrency “will transform the financial system even as fraud pervades the rest of the crypto ecosystem”.

Swan Bitcoin reportedly caters to “wealthy families, businesses and retail traders to set up Bitcoin investment plans, often through an automatic purchasing program”. This dollar-cost averaging strategy is one that Klippenstein uses himself.

According to the report, he “invests a portion of his own savings in Bitcoin every day” and “has continued to buy at the same rate throughout the downturn” of the past few months.

So that’s at least one advocate of a DCA strategy for Bitcoin. Something to consider for any reader who wants to jump aboard the crypto train, but finds the volatility that comes with it offputting.

The post Is it smart to use dollar cost averaging to buy Bitcoin? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Bitcoin price dips in August after soaring 22% in July. What’s going on?
• Bitcoin price dips. Is Ethereum on track to dethrone the top crypto?
• Why El Salvador is doubling down on Bitcoin despite the 2022 price crash
• The Bitcoin price is leaping 10% higher today. What’s going on?
• Bitcoin or Cardano: which crypto is most widely held among Aussies in 2022?

Motley Fool contributor Sebastian Bowen has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/6rkuAEq

The Xero Ltd (ASX: XRO) share price has enjoyed a strong run this week, up almost 3% since last Friday’s closing bell.

That’s despite the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider slipping 1.97% in lunchtime trading today, currently at $95.64 a share.

It’s not just the Xero share price in the red.

ASX tech shares are broadly struggling today, with the S&P/ASX All Technology Index (ASX: XTX) down 0.61% at the time of writing compared to a 0.41% gain posted by the ASX 200.

That’s the latest price action.

In an announcement unlikely to be having a major impact on the Xero share price today, the company reported it’s moving to an Asia Pacific (APAC) regional leadership structure.

Why the change to an APAC regional leadership structure?

According to the release, Xero is making the change to combine its talent and capabilities to support its growth plans. The company also said the new leadership structure will strengthen its value to its partners and customers across the region.

Under the new structure, Xero’s leadership across Australia, New Zealand, and Asia will be combined into an Asia Pacific Region.

Commenting on the change, Xero’s chief customer officer Rachael Powell said:

These changes will allow us to better align and share leadership talent and resources across APAC, to ensure we continue to improve Xero’s engagement with our small business customers and accounting and bookkeeping communities.

Xero’s country managers will join an APAC leadership team led by the newly appointed managing director APAC, Joseph Lyons.

Lyons, Xero’s current managing director for Australia and Asia, will now also lead APAC. This will include oversight of New Zealand from October.

“Joseph has excelled in his time as managing director Australia and Asia, and I know he will take on expanded responsibilities in the APAC role with determination and passion, ensuring that we are engaging Xero’s customers and partners,” Powell said.

Xero share price snapshot

The Xero share price is down 35% in 2022. That compares to a year-to-date loss of 25% posted by the All Tech Index.

The post What’s happening with the Xero share price at the end of a strong week? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX 200 tech shares having such a stellar run today?
• Experts name 2 beaten down ASX shares that could be going cheap
• Broker gives its verdict on the Xero share price following new product launch
• 2 excellent ASX tech shares experts say are buys
• How are ASX 200 tech shares performing on Wednesday?

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

from The Motley Fool Australia https://ift.tt/CMVBjw2

July saw the broader market partially rebound after a rough few months, but one S&P/ASX 200 Index (ASX: XJO) wasn’t involved in the upwards action. The Flight Centre Travel Group Ltd (ASX: FLT) share price traded relatively flat despite the index’s exuberance.

The stock’s weak trade also came despite the company posting exciting news of its full year earnings, set to be released on 25 August.

After closing June at $17.36, the Flight Centre share price was trading ever so slightly lower at $17.22 come the end of July. That represents a 0.8% fall over the course of last month.

Meanwhile, the ASX 200 surged 5.74% higher to recover most of its June losses.

So, what might have weighed the Flight Centre share price down last month? Let’s take a look.

What weighed on the Flight Centre share price in July?

The Flight Centre share price slipped slightly last month amid plenty of kafuffle in the travel industry.

Australia dropped COVID-19 vaccine mandates for international arrivals, the July school holidays proved a hugely popular time to travel, and many called for Australia to close its border with Bali in a bid to avoid an outbreak of foot-and-mouth disease.

On top of that, the surging spread of COVID-19 and influenza saw chaos erupt at airports. At one point, Qantas Airways Limited (ASX: QAN) cancelled or delayed 15% of domestic flights for more than an hour.

But there was some major positive news from Flight Centre in July.

The company upgraded its guidance for financial year 2022 by around 12%. It now expects to post an underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $180 million to $190 million. That would see it breaking even on an EBITDA basis in the second half.

The company’s short position also improved last month. It fell from 16.17% at the end of June to 15.15% on 29 July – the latest data available.

Sadly, that still leaves the stock wearing the crown of short sellers’ favourite ASX share.

The post Why did the Flight Centre share price underperform the ASX 200 in July? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Own Flight Centre shares? Here’s why the boss is predicting more pain for the travel sector
• When did Flight Centre shares last pay a dividend?
• These are the 10 most shorted ASX shares
• Why is the Flight Centre share price tumbling 5% today?
• Why Flight Centre, Iress, Nitro, and Perseus shares are dropping today

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

from The Motley Fool Australia https://ift.tt/5SEXocl

Tesla Inc (NASDAQ: TSLA) shares have become one of the most famous investments in the world over the past few years.

Helped by a number of factors, including the company’s breakneck growth, the… eccentricities of Tesla CEO Elon Musk, and sometimes feverish dedication from its base of retail investors, Tesla shares have long been one of the most-watched stocks on the US markets.

The elephant in the room is of course the life-changing stock price gains this company has given investors in recent years. Back in 2019, the electric vehicle and battery manufacturer was a US$40 stock. Today, it has just closed at US$925.90 a share, representing a gain of almost 2,000% over the past three years.

Late last year, Tesla shares reached a record high of US$1,243.49 each, which was a gain approaching 3,000% from the benchmark we just discussed. As the company stands today, Tesla is now the fifth-largest share on the US markets by market capitalisation.

It’s now larger than companies like Johnson & Johnson and Warren Buffett’s Berkshire Hathaway.

But right now, the Tesla stock price could be described as prohibitively expensive for many investors. After all, an investor wanting to open a position in Tesla would need US$925.90 (or almost $1,324 in our currency) just to buy a single share.

Well, that looks like it is about to change.

Tesla announces three-for-one stock split

According to reporting in Forbes, Tesla shareholders have just approved a stock split for the company.

A stock split is where a company ‘splits’ and reissues its shares at a lower price. The volume increases but the value decreases. To use the common metaphor, it is akin to reslicing a pizza into smaller slices. The overall valuation of a company doesn’t change, only the number and individual value of the shares.

In Tesla’s case, a three-for-one split was approved. This means that when the split takes effect, Tesla’s share count will be increased by a factor of three, which means that each share will be worth a third of what it used to be.

So if an investor owned 10 Tesla shares, each worth US$925.90 today, they would own 30 Tesla shares, each worth approximately US$308.63, if the split went ahead.

As you can see, the investor still owns a total of US$9,259 worth of Tesla under either scenario. Thus, the ‘size of the pizza’ remains the same.

So why do companies do stock splits then, if the outcome is so inconsequential?

How does a stock split benefit Tesla shares?

Well, a smaller individual stock price can increase the liquidity of a company’s stock, for one. It also helps smaller, individual retail investors access the now-cheaper shares. Additionally, it creates some publicity for the company too (here we are talking about it).

In the past, we have seen many different stocks rally after the announcement and execution of a stock split. That’s despite the fact it does not increase the underlying fundamental value of a company, as we’ve discussed.

Tesla is not the only big-name company to undertake a stock split in 2022. We’ve also seen stock splits from Amazon.com Inc (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) this year. Both of these were 20-to-1 splits.

Indeed, it was only back in 2020 that Tesla undertook its last stock split, a five-to-one division at the time. We don’t know yet when this latest split will take effect, but no doubt the company will announce this soon.

Tesla shares remain down close to 23% in 2022 thus far, although the company has rallied by almost 33% over the past month alone.

At the company’s last stock price, Tesla has a market capitalisation of US$967.1 billion.

The post Think you can’t afford to buy Tesla shares? Think again… appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Tesla and other EV stocks rocketed higher in July
• Why Tesla shares bounced ahead of its stock-split vote
• Why the Tesla share price jumped on Monday
• Tesla Q2 earnings call: 3 must-see quotes from Elon Musk
• Tesla beats earnings estimates and sells Bitcoin — Is the stock a buy?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Tesla. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/LvDHVXG

July gains

Global stock markets continue to hold on to their huge July gains, albeit without setting the world on fire.

Although central banks are still hiking interest rates, the latest being the Bank of England’s 0.5 percentage point increase overnight (more on this below), US and Australian bond yields continue to fall… a positive for markets.

After having hit 4.2% in mid-June, the Australian 10-year bond now stands at 3.1%, and is a significant reason as to why the S&P/ASX All Technology Index (ASX: XTX) has roared 25% higher in just the past three weeks.

With gains like that, it’s no wonder markets are pausing for breath, especially given the ASX reporting season is just around the corner. 

The lower the interest rate, the cheaper the money. And the cheaper the money, the higher the stocks. 

US leads the market

Whilst ASX results will be important on an individual company basis — sending stocks up or down largely based on their future outlooks — the overall direction of the stock market will be determined by what’s happening in the United States.

As ever, in these unusual days of sky-high inflation, all eyes remain on the US Federal Reserve and its pace of interest rate rises.

Commenting on Bloomberg, Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors, said, “there’s an intense tug-of-war happening in the economy and markets.” 

“On one side, you have a narrative that reasonable growth is going to support continued inflation pressure and keep the Fed hiking. The other narrative is that slowing growth is going to ease inflation and allow the Fed to stop hiking.”

I’m playing both sides, as you’ll read further down…

Instability and high inflation in the UK

The United Kingdom looks to be in a mess. 

Never mind temperatures recently reaching 40 degrees celsius for the first time ever (brutal for a country with virtually zero air conditioning)…

And a period of political instability following the resignation of Prime Minister Boris Johnson…

Overnight, the Bank of England increased its inflation forecast to a whopping 13.3% for the fourth quarter, predicting it will still be around double-digit levels in a year’s time.

13.3% inflation!!! Imagine what that could do to the price of an iceberg lettuce.

This came after the central bank raised its base rate by 0.5 percentage points at the same time as predicting the UK economy was on course for a period of stagflation – a recession combined with a soaring cost of living.

The Financial Times said: “Britain faces a protracted recession and the worst squeeze in living standards in more than 60 years.”

Yet, the FTSE 100 took the blow in its stride, finishing flat on the day’s trade. In fact, over the past 12 months, the country’s benchmark index has gained 4.6%. 

Never more true is the saying the stock market is not the economy. Still, there are undoubtedly tough times ahead for the 67 million inhabitants of the United Kingdom.

Have we reached the bottom?

With each passing day of the US earnings season, speculation is growing that stock markets have bottomed. 

Big tech names such as Alphabet, Apple and Microsoft reported earnings at least in line with expectations, something that in these beaten-down markets has been enough to send stock prices higher. 

Having at one stage fallen 29% in 2022, the Apple share price has jumped 27% higher in the past 3 weeks. Not bad for a company with a market cap of $US2.66 trillion.

So was mid-June the market bottom?

I’d put the odds at say 70/30 in favour of yes as it feels like the current batch of interest rate rises in the US and Australia are having the effect of slowing inflation.

The alternative — the stock market falling back below its June 2022 lows — is encapsulated by comments in the latest Totus Alpha Fund performance update:

It takes time for the impacts of high inflation, higher interest rates and lower liquidity to feed through to the economy and asset prices. Central banks have been crystal clear in their warnings about inflation and the only tool they have to control it is asset prices.

At some point central bankers will have to reverse course and stimulate but if it is after a recession then history suggests that the starting point for asset prices will be lower.

Totus are acutely aware of their reputation as “perma bears,” yet are ready to add to their favourite high-quality companies on any further bouts of stock market weakness.

Being a glass-half-full person, I always look at times like these as opportunities. 

If the market keeps rising, your portfolio benefits, and also it indicates better times ahead (albeit some months ahead) for the economy.

If the market does indeed test its June 2022 lows, it gives you an opportunity to snap up some more bargains. I was very active — especially at the smaller end of the market — during a time which I thought was characterised by indiscriminate selling, likely tax-loss related. 

I’ve got cash on the sidelines, ready to go again. Roll on ASX earnings season, where I’ll find out if I backed the right horses. Giddy up, investors.

The post Even if the stock market hasn’t bottomed, here’s how you can still win the game of investing appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX gold shares surging ahead on Friday
• ASX gold share Peregrine explodes 60% on ‘spectacular’ new find
• Guess which ASX lithium share is rocketing 18% on a new deal with BMW
• Road to retribution: Can the Telstra share price continue its upwards trajectory under a new CEO?
• Block share price tumbles 6% as quarterly earnings sink

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bruce Jackson has positions in Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/mrv2ZlX

Gold prices continue to surge after finding a bottom last month. The yellow metal now trades at US$1,791 per troy ounce.

A wave of macroeconomic crosscurrents is lifting the gold price this month after traders had sold it down to 52-week lows.

Gold prices climbed more than 1% to hit a fresh one-month peak on Thursday. According to Reuters, this “was underpinned by a retreat in the dollar and U.S. Treasury yields, as investors kept a close tab on U.S.-China tensions”.

With the relief rally in place, these three ASX gold miners have opened the session in the green on Friday.

OceanaGold Corp (ASX: OGC)

Shares of OceanaGold are up more than 8% higher on Friday and now trade at $2.61 apiece on no news.

After a period of heavy downside since April, the company’s shares have bounced from three-month lows as trading volume surges to around three times the four-week average.

On 29 July, the company released its second-quarter financial report, showing a period of sales growth.

The company reported revenue for the six months ended 30 June 2022 increased by 55.4% over the comparative period last year. This was “due mainly to higher sales volumes and higher average gold and copper price,” OceanaGold said.

“Net profit after tax [NPAT] for the six months ended 30 June 2022 was $98.0 million compared to $47.4 million for the same period in 2021,” it added.

This year to date, the OceanaGold share price has clipped a 12% gain.

Bellevue Gold Ltd (ASX: BGL)

Shares in Bellevue Gold have pushed 5.42% higher today and now trade at 87.5 cents apiece. Certainly, the gold price looks to have helped Bellevue shares today.

The company released its second-quarter report in July where it said it had significantly de-risked its Bellevue Gold Project in WA by locking in 90% of pre-production capital under contract.

Moreover, with exploration and capital expenditure in the gold sector heating up, “[e]merging producers like Bellevue could be on the menu for the big producers,” Livewire notes.

Despite the updates, the Bellevue share price has slipped more than 17% into the red over the past 12 months to date.

Ramelius Resources Ltd (ASX: RMS)

Shares of Ramelius are another gold play that has spiked more than 5% in today’s session at the time of writing.

Investors have bid the Ramelius share price 5.5% higher on no news, with the gains looking to be correlated to sector strengths today.

After several months of downturn, the stock has caught a bid since 30 June. This is curious, as sentiment was poor following the release of the company’s production update a week earlier.

The company reported its “gold production for FY22 will fall marginally short of the current guidance range”.

Nevertheless, with the price of gold strengthening, and the broad sector strengthening since June/July, the stage is set for Ramelius to gain on the chart.

The post 3 ASX gold shares surging ahead on Friday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 ASX mining shares with ‘good margins regardless of commodity prices’: fundie
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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

from The Motley Fool Australia https://ift.tt/C1fDFga

The Peregrine Gold Ltd (ASX: PGD) share price has jumped nearly 62% into the green on Friday after coming out of a trading halt from 1 August.

Peregrine advised it had intersected mineral resource after drilling at its Peninsula Prospect, part of the Newman project in WA.

The announcement has caught buyers today and volume has surged to 260 times the 4-week trading average at more than 760,000 shares.

What did Peregrine announce?

The company announced that a significant amount of visible gold has been identified in a drill core after dilling within a quartz-ironstone breccia vein at the Peninsula Prospect.

It identified visible gold at the surface level and then used a hand-held core drill to drill two vertical holes adjacent to and beneath the visible resource.

Peregrine technical dDirector, George Merhi said that it is “very rare” for a first-time field exploration program to strike this kind of mineralisation “undisturbed at the surface”.

In addition to being a very impressive demonstration of the high-grade potential of this system it also highlights just how underexplored the area is.

Peninsula and the other Newman prospects due to be drilled have been uncovered as a result of systematic exploration over a small portion of our overall project area. In 2022 we have expanded this effort and look forward to updating the market on potentially new discoveries in this exciting district.

From here, the company is set to commence reverse circulation (RC) drilling on 15 August. Efforts will be focused on the Peninsula prospect and those adjacent prospects to the site.

In the past 12 months, the Peregrine share price has gained 58% as well as 45% this YTD.

The post ASX gold share Peregrine explodes 60% on ‘spectacular’ new find appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX lithium share is rocketing 18% on a new deal with BMW
• Road to retribution: Can the Telstra share price continue its upwards trajectory under a new CEO?
• Block share price tumbles 6% as quarterly earnings sink
• Worried about how ASX 200 tech shares might perform this earnings season? Here’s what to watch
• Why Goldman is tipping 80% upside for the Elders share price

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

from The Motley Fool Australia https://ift.tt/LRdCrqK