• The Bitcoin price tanked 15% in August. Here’s why

    A man sits at his computer with his head in his hands while his laptop screen displays a Bitcoin symbol and his desktop computer screen displays a steeply falling graph.

    A man sits at his computer with his head in his hands while his laptop screen displays a Bitcoin symbol and his desktop computer screen displays a steeply falling graph.

    The Bitcoin (CRYPTO: BTC) price has broken back through the psychologically important US$20,000 mark, currently trading for US$20,226 (AU$29,801).

    That’s a healthy rebound from the lows of US$19,654 the world’s top crypto was trading for just a few hours ago. Though Bitcoin remains down 58% year-to-date.

    It’s also a fair bit lower than where it kicked off August after the Bitcoin price gained 22% in July.

    Here’s what happened in the month just past.

    Bitcoin price hit by renewed risk-off sentiment

    Depending somewhat on your time zone, as crypto valuations can move quickly, the Bitcoin price kicked off August trading for US$23,715.

    By the end of the month, the token was worth US$20,209, down 14.8%.

    Though less volatile than many months, August still saw some big price swings, with Bitcoin trading as high as US$25,135 and as low as US$19,600, according to data from CoinMarketCap.

    The biggest headwind facing the token was increased hawkishness from the US Federal Reserve and other leading global central banks.

    With inflation in most developed nations running at multi-decade highs and not looking to fall back within guideline ranges soon, investors sold off most risk assets in August as they braced for further interest rate hikes.

    The tech-heavy NASDAQ, a solid proxy for risk appetite, fell 4.6% last month.

    And the Bitcoin price, as we’ve seen through most of 2022, not only mirrored that fall but amplified it. The same way the token tends to amplify gains made by the NASDAQ.

    Explaining the strengthening connection between the Bitcoin price and stocks this year, eToro’s market analyst and crypto expert Simon Peters said, “Institutions have treated crypto holdings in much the same way as these equities, which is why there’s greater correlation now than in the past.”

    At the current price, Bitcoin has a market cap of US$387 billion.

    The post The Bitcoin price tanked 15% in August. Here’s why appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of August 4 2022

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    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 Bitcoin. The Motley Fool Australia has positions in 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.

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  • Here are the 3 most heavily traded ASX 200 shares on Friday

    Two bidders raise their hands in the air to bid up the price of an ASX 200 shareTwo bidders raise their hands in the air to bid up the price of an ASX 200 share

    The S&P/ASX 200 Index (ASX: XJO) is motoring towards a slight downtick to end the trading week so far this Friday. After what has been a rather tough week for investors, the ASX 200 has lost 0.2% so far today to trade around 6,832 points at the time of writing.

    So let’s dive deeper into these end-of-week moves and check out the ASX 200 shares currently topping the share market’s trading volume charts, according to investing.com.

    The 3 most traded ASX 200 shares by volume this Friday

    South32 Ltd (ASX: S32)

    First up this Friday is ASX 200 diversified mining share South32. So far today, a hefty 14.6 million South32 shares have been dug up and sold. There’s been no news out of the company today, save for a share buyback notice (which could in itself be influencing trading volumes).

    So the more likely explanation for this volume is the nasty share price fall we have seen with the company today. At present, South32 shares are down by 2.1% at $3.98 each.

    As my Fool colleague Brooke looked into earlier today, the latest COVID news out of China appears to be putting a dent in the entire ASX 200 resources sector today.

    Core Lithium Ltd (ASX: CXO)

    ASX 200 lithium share Core Lithium is next up this Friday. So far during today’s session, a sizeable 17.9 million Core Lithium shares have been swapped by investors. There’s been no news out of Core Lithium this Friday either. So again, let’s look to the company’s share price itself.

    Core Lithium shares have been shunned by investors today. The company is presently down a nasty 5.6% at the time of writing to $1.28 a share. It seems Core Lithium is under the same pressure that South32 and other ASX mining shares are facing today.

    Pilbara Minerals Ltd (ASX: PLS)

    Our third, final and most traded ASX 200 share this Friday is none other than fellow lithium share Pilbara Minerals. This session has seen a whopping 22.8 million Pilbara shares bought and sold on the market.

    Once more, it looks as though a depressing share price movement is responsible for those volumes we are seeing. Pilbara shares are faring far better than Core Lithium shares, though. The company has lost 1.38% so far at $3.58 a share. This is the probable cause of the elevated volumes we are witnessing.

    The post Here are the 3 most heavily traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of August 4 2022

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

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  • Why Core Lithium, Mineral Resources, PointsBet, and Strike Energy are dropping

    A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

    A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) looks set to end the day in the red. The benchmark index is currently down 0.1% to 6,838.7 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

    Core Lithium Ltd (ASX: CXO)

    The Core Lithium share price is down 5.5% to $1.28. This is despite there being no news out of the lithium developer. However, it is worth noting that a large number of lithium shares are trading lower today. This follows a poor night on Wall Street for lithium miners such as Albermarle, Livent, and SQM.

    Mineral Resources Limited (ASX: MIN)

    The Mineral Resources share price is down almost 6% to $59.19. As well as getting caught up in the lithium share selling today, this mining company has seen its shares trade ex-dividend this morning. Eligible shareholders can now look forward to receiving its 100 cents per share dividend later this month on 23 September.

    Pointsbet Holdings Ltd (ASX: PBH)

    The PointsBet share price has continued its slide and dropped 3% to $2.36. This sports betting company’s shares have been hammered since the release of its full year results. Investors appear concerned that it may run out of cash before reaching profit. However, one broker doesn’t expect that to be the case, as covered here. Though, it admits it will be a close call.

    Strike Energy Ltd (ASX: STX)

    The Strike Energy share price is down 11% to 24.5 cents. This morning this energy company revealed that it has received binding commitments to raise $30 million through a placement to local and international institutional, professional, and sophisticated investors. Strike is raising the funds at an issue price of 23.5 cents per new share.

    The post Why Core Lithium, Mineral Resources, PointsBet, and Strike Energy are dropping appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of August 4 2022

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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 positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why is the CSL share price outperforming the ASX 200 on Friday?

    Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

    The CSL Limited (ASX: CSL) share price is in investors’ good books on Friday. At this rate, Australia’s third largest listed company looks set to finish the week higher than where it started.

    During an eventful week for equities, the ASX biotech giant has reminded the market of its blue-chip appeal. For context, the S&P/ASX 200 Index (ASX: XJO) is on pace to descend 3.6% this week. Meanwhile, the pharmaceutical behemoth is marching upwards.

    Bringing the focus to today, CSL shares are currently 0.8% elevated at $296 apiece. Whereas, the broader Aussie index is currently down 0.05%.

    Today, the only new information injected into the public domain is the company’s FY22 annual report. Let’s see if there is anything meaningful for the CSL share price within this.

    Holding onto a winning formula

    For the most part, CSL’s annual report rehashed the same information shared in the company’s full-year results around two weeks ago. This included the underwhelming US$2.255 billion in after-tax profits from the 12-month period, reflecting a decline of 6% from the prior year.

    However, long-term shareholders can forgive a single difficult year for the bottom line. What is important is the future, and how the company will bounce back. Some investors might already have a partial answer to this question, with Goldman Sachs pointing toward the subsiding high plasma collection prices.

    Though, leadership retention is often one key risk that hangs over companies that have experienced a long stretch of great success. For CSL CEO and managing director, Paul Perreault, it’s been more than nine long years of commitment to take the CSL share price from around $60 a pop to the near $300 heights of today.

    As such, losing Perreault now might send shivers down the spines of some long-standing shareholders. For that reason, the market might be responding positively to the CSL board’s motion to further incentivise the current CEO.

    According to the report, the board has determined that Perreault will get a 3.5% increase in his fixed reward. Meanwhile, the CEO’s long-term incentive will be jacked up from 400% to 450% of Perreault’s base salary of US$1.9 million.

    CSL share price compared to the index

    There’s no doubt Perreault has led the biotech to riches, both for the business and shareholders. During his tenure thus far, the CSL share price has scaled approximately 380%. This translates to a compound annual growth rate (CAGR) of 19.2%.

    A less fortunate investor, backing the Aussie index, has witnessed a more mild return of 43% over the same period. For an apples-to-apples comparison, this works out to be around 4% CAGR.

    The post Why is the CSL share price outperforming the ASX 200 on Friday? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of August 4 2022

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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 positions in 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 Scott Phillips.

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  • Why is the Core Lithium share price tumbling 5% on Friday?

    A man looking sheepish grits his teeth and looks to the sideA man looking sheepish grits his teeth and looks to the side

    The Core Lithium Ltd (ASX: CXO) share price is powering down on Friday despite no announcements from the company.

    At market open, shares in the lithium producer were in the green before quickly reversing their gains.

    Currently, the Core Lithium share price is $1.29, down 5.2%.

    Let’s take a look at what could be driving the falling value of this ASX lithium share today.

    Core Lithium shares suffer on Chinese woes

    Investors are continuing to offload Core Lithium shares amid negative sentiment impacting the wider materials sector.

    For context, the S&P/ASX 200 Materials Index (ASX: XMJ) is the worst performing sector across the ASX on Friday. It is deep in negative territory, down by 1.95% today, and 8.5% for the week.

    As reported by Reuters, the ongoing crisis in China’s property market and manufacturing industry is having a ripple effect across the globe.

    At first, the country’s COVID-19 restrictions stalled economic growth as hubs went into strict lockdown. However, this appears to be happening all over again as fresh outbreaks have occurred in key cities.

    Furthermore, China’s property woes along with weakened demand in the private sectors, and power shortages, are disrupting production.

    In turn, this is putting pressure on commodity prices.

    While the lithium price has remained stable for now, other commodities haven’t been so fortunate with red across the board.

    Both iron ore and copper prices have tanked 7% in the past week. Steel is down 5% and platinum is retracing 4%.

    Nonetheless, it is evident that the world’s second-largest economy is at risk of backtracking on GDP growth.

    China experienced a slight increase in GDP by 0.4% in the second quarter from a year ago.

    Where commodity prices go from here now all depends on China’s next GDP data.

    Core Lithium share price summary

    Despite its recent falls, the Core Lithium share price has surged 265% higher over the past 12 months.

    When looking at year to date, the shares are up 103%.

    Based on today’s price, Core Lithium commands a market capitalisation of approximately $2.35 billion.

    The post Why is the Core Lithium share price tumbling 5% on Friday? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Core Lithium Ltd right now?

    Before you consider Core Lithium Ltd, you’ll want to hear 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 he’s 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 are better buys.

    See The 5 Stocks
    *Returns as of August 4 2022

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

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  • Why Dexus, Dusk, Macquarie, and Qantas shares are pushing higher

    A happy group of workers around a table raise their arms in the air as though celebrating a work achievement. One woman is on her feet with her arm raised in the air in a fist-pumping action.

    A happy group of workers around a table raise their arms in the air as though celebrating a work achievement. One woman is on her feet with her arm raised in the air in a fist-pumping action.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a small decline. At the time of writing, the benchmark index is down a fraction to 6,841.8 points.

    Four ASX shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

    DEXUS Property Group (ASX: DXS)

    The Dexus share price is up 1% to $8.55. This afternoon the company confirmed that despite some management changes at AMP Limited (ASX: AMP), the purchase of its real estate and domestic infrastructure equity business will go ahead. It is now expected to complete by November for $20 million less than previously advised.

    Dusk Group Ltd (ASX: DSK)

    The Dusk share price is up almost 7% to $2.36. This follows the release of the specialty retailer’s full year results for FY 2022. Dusk reported a 6.9% decline in revenue to $138.4 million and a 31.3% drop in net profit after tax to $18.4 million. This was seen as a decent outcome considering the company lost 24% of its store trading days due to COVID-19 impacts.

    Macquarie Group Ltd (ASX: MQG)

    The Macquarie share price is up 2% to $177.98. This appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has retained its overweight rating and lifted its price target to $231.00. It has upgraded its earnings estimates for FY 2023 to reflect favourable trading conditions.

    Qantas Airways Limited (ASX: QAN)

    The Qantas share price is up 1.5% to $5.28. This is despite there being no news out of the airline operator today. However, its shares have been on a roll recently following a positive update out of a travel booking company. In addition, oil prices have pulled back materially this week, which could help ease Qantas’ fuel costs.

    The post Why Dexus, Dusk, Macquarie, and Qantas shares are pushing higher appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of August 4 2022

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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 Dusk Group Limited and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why is the Sayona Mining share price crumbling 8% on Friday?

    A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phoneA man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone

    The Sayona Mining Ltd (ASX: SYA) share price is tanking on Friday despite no news having been released by the company.

    Stock in the mineral explorer and developer is currently trading at 25.75 cents apiece, 8.04% lower than its previous close.

    In comparison, the All Ordinaries Index (ASX: XAO) has lifted slightly, up 0.02% at the time of writing.

    So, what might be weighing on the ASX lithium hopeful? Let’s take a look.

    What’s going wrong for the Sayona Mining share price?

    The Sayona Mining share price is plummeting today despite the company’s silence. In fact, the market hasn’t received word from the mineral stock in close to a month.

    The last time the company released price-sensitive news was on 4 August. Then, it provided an update on the planned restart of its North American Lithium operation.

    However, there is one situation that might explain the Sayona Mining share price’s poor performance today. That is the poor performance of many of its peers.

    The S&P/ASX 200 Materials Index (ASX: XMJ) is the ASX 200’s worst performing sector right now. It’s being dragged down amid concerns around a major lockdown and falling factory activity in China.

    And lithium shares are, in turn, the sector’s biggest weight.

    The Mineral Resources Limited (ASX: MIN) share price is leading its downfall, tumbling 5.3%. Shares in Core Lithium Ltd (ASX: CXO), Liontown Resources Limited (ASX: LTR), and Lake Resources NL (ASX: LKE) aren’t far behind, falling between 4.4% and 5.1%.

    While Sayona Mining isn’t a part of the ASX 200, its stock might be being influenced by the sell-off among its peers on the index.

    Its shares are also falling alongside those of Piedmont Lithium Inc (ASX: PLL). The Piedmont Lithium share price has tumbled 4.5% at the time of writing after the company announced plans to build a second lithium hydroxide processing plant this morning.

    Luckily, the Sayona Mining share price still has plenty of wiggle room. It is currently trading around 78% higher than it was at the start of 2022.

    In comparison, the All Ords has slipped 11% year to date.

    The post Why is the Sayona Mining share price crumbling 8% on Friday? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Sayona Mining Limited right now?

    Before you consider Sayona Mining Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sayona Mining Limited wasn’t one of them.

    The online investing service he’s 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 are better buys.

    See The 5 Stocks
    *Returns as of August 4 2022

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

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  • Should investors be buying the dip in ASX 200 shares right now?

    A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.

    A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.

    Today’s rather impotent 0.06% gain for the S&P/ASX 200 Index (ASX: XJO) so far to just under 6,850 points will do little to erase the painful memories of this trading week. Even after these moves, the ASX 200 remains a nasty 3.6% down from where it was at last Friday’s close.

    In fact, at today’s levels, the ASX 200 has now slumped almost 4% since mid-August. The index remains almost 10% off of where it was back in mid-April and down 8.5% year to date in 2022 thus far.

    This might be viewed as an attractive situation by many value investors, though. As the old maxims go, investors should be looking to buy the dip or ‘buy low, sell high’.

    But is this the right course of action for ASX 200 shares?

    Is it time to buy the dip in ASX 200 shares?

    Well, yes. That’s according to one fund manager anyway.

    As reported in the Australian Financial Review (AFR) today, Fundstrat Global technical strategist Mark Newton is seeing potential in the United States markets right now.

    He stated the following on how he is viewing the current market:

    While many might feel entering a seasonally bearish month like September makes buying dips risky, I’m expecting that the next week or two could actually help [S&P 500] recoup at least half or more of the recent damage since 8/16…

    The already bearish sentiment is growing more negative at a time when markets have entered an important area of price/time support, which can help this pullback to reverse course… Buying this dip looks correct.

    So that’s certainly an optimistic view on the US markets right now. But what about ASX shares? After all, most Aussies are invested in the likes of BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) over US shares like Apple Inc (NASDAQ: AAPL) and Microsoft Corporation (NASDAQ: MSFT).

    Well, the US markets are not the ASX 200. But, as we’ve covered in the past, the two markets have an extremely high level of correlation, So if the US markets indeed rebound going forward, it wouldn’t surprise too many commentators to see the ASX 200 follow suit, at least to some degree.

    So that’s one outlook on the immediate future of the US markets and by possible extension, ASX 200 shares. No doubt investors, value investors in particular, might react with enthusiasm. But we shall have to see what happens.

    At present, the ASX 200 Index is down a nasty 8.5% year to date in 2022.

    The post Should investors be buying the dip in ASX 200 shares right now? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of August 4 2022

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

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  • 27% of ASX 200 shares cut dividends during earnings season. What’s next?

    A man and a woman sit in front of a laptop looking fascinated and captivated.

    A man and a woman sit in front of a laptop looking fascinated and captivated.

    The majority of S&P/ASX 200 Index (ASX: XJO) shares announced dividends during the earnings season just gone by.

    Yet 27.4% of ASX 200 shares cut their dividend payouts compared to the prior corresponding period.

    Here’s the breakdown.

    84% of ASX 200 stocks issued a dividend

    According to data from CommSec, the ASX 200 shares that reported their full year or half-year results will pay out dividends of $42.3 billion.

    While that’s a tidy sum, it’s still down 1.7% year on year.

    And while 111, or 84%, of ASX 200 companies that reported declared a dividend, 27.4% of those cut their payouts from a year earlier, while 61% boosted their payouts. And 11.5% of the companies paid out the same amount as the prior year.

    In aggregate (summing the dividends per share), dividends during this earnings season fell by 6%.

    What’s next?

    Addressing the payouts of ASX dividends on a quarterly basis, Jane Shoemake, client portfolio manager on the global equity income team at Janus Henderson, said:

    The second quarter marks a seasonally quieter period for Australian dividends, with local payouts growing by 13.2% in US dollar terms. Our index of Australian dividends is now 14.7% above its pre-pandemic level in December 2019.

    The main driver of Australia’s surging payouts continues to be the mining industry, which has benefitted from surging commodity prices.

    Looking ahead, Matt Gaden, head of Australia at Janus Henderson, sounded some words of caution:

    We would caution investors that local payouts are unlikely to maintain their post-COVID strength. This is particularly important given the relatively high concentration of Australian dividend payers being banks and miners, calling for greater sectoral and geographical diversification from income investors holding the stocks of only a small number Australian companies.

    Indeed, BHP Group Ltd (ASX: BHP) has become a monster dividend payer among ASX 200 shares amid soaring commodity prices.

    The mining giant reported its earnings results on 16 August and declared a final fully franked dividend of US$1.75 per share. That works out to US$8.9 billion, or AU$13.1 billion at current exchange rates.

    The post 27% of ASX 200 shares cut dividends during earnings season. What’s next? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group right now?

    Before you consider Bhp Group, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group wasn’t one of them.

    The online investing service he’s 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 are better buys.

    See The 5 Stocks
    *Returns as of August 4 2022

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

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  • It’s a cloudy day on the ASX, but some All Ords shares are still shining brightly

    Five people are leaping in the shallows of the beach water as sunset shines gold on them.Five people are leaping in the shallows of the beach water as sunset shines gold on them.

    The All Ordinaries Index (ASX: XAO) is limping towards the weekend, wobbling in and out of the green on Friday. But while the index struggles to gain traction, some ASX All Ords shares are posting notable gains.

    Right now, the All Ords is down 0.04%. Meanwhile, its top performing constituents are boasting gains as high as 11.3%.

    Let’s take a look at some of the All Ords shares outperforming on Friday.

    These All Ords shares are defying the ASX’s downturn

    It’s been a rough week on the market. Indeed, the benchmark index is on track to finish the week 3.7% lower than it closed last week’s trade. But it’s not all doom and gloom. Plenty of All Ords shares are boasting notable gains on Friday.

    The index is currently being led by three shares, each operating in vastly different spaces.

    Oil and gas explorer Carnarvon Energy Ltd (ASX: CVN) is in the lead, posting a 11.3% gain to trade at 16.7 cents. It’s joined in the All Ords top three performers by minerals explorer and developer 5E Advanced Materials Inc (ASX: 5EA) – up 7.5% to $2.28 – despite the prices of both oil and major commodities falling overnight.

    The Cettire Ltd (ASX: CTT) share price is also posting a decent performance, lifting 7.9% to trade at 75 cents. That’s despite no news having been released by the online luxury goods retailer.

    Many larger ASX All Ords shares are also putting on a strong performance today.

    The Macquarie Group Ltd (ASX: MQG) share price, for one, is lifting 2% right now. Meanwhile, shares in Clinuvel Pharmaceuticals Limited (ASX: CUV) are up 3.9%.

    Finally, tech favourite and ASX constituent Life360 Inc (ASX: 360) is also well and truly in the green, having lifted 6.4% at the time of writing.

    The post It’s a cloudy day on the ASX, but some All Ords shares are still shining brightly appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of August 4 2022

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    Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cettire Limited and Life360, Inc. The Motley Fool Australia has recommended Cettire Limited and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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