The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is sliding in early trade today.

At the time of writing, the medical device company’s shares are down 1.64% to $17.43.

On the other hand, the S&P/ASX 200 Index (ASX: XJO) is edging higher. The benchmark ASX 200 Index is currently up 0.13% to 6,532 points.

Let’s check what’s going on with the New Zealand-based company.

Shareholders secure the Fisher & Paykel Healthcare final dividend

With the company’s full-year earning seasons wrapped up, Fisher & Paykel Healthcare shares are trading ex-dividend today.

This comes after the company released its FY22 results on 25 May, reporting mixed numbers across key financial metrics.

Nonetheless, the board opted to slightly increase its final dividend by 2% over the prior corresponding period.

This brings the company’s full-year dividend to 39.5 cents, an improvement of 4% from FY21.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor didn’t buy Fisher & Paykel Healthcare shares before this date, the dividend will go to the seller.

When can shareholders expect to be paid?

For those eligible for Fisher & Paykel Healthcare’s final dividend, shareholders will receive a payment of NZ$0.22.5 cents (A$0.2046) per share on 6 July. The dividend is unfranked which means investors won’t get any tax credits from this.

Under the company’s capital management framework, management’s priority is to appropriately invest in the business to support long-term sustainable growth.

The company has a “target debt to debt plus equity ratio in the range of +5% to -5%”. This also takes into account future business performance and cash requirements to run its operations.

In addition, Fisher & Paykel Healthcare has a trailing dividend yield of 2.2%.

Fisher & Paykel Healthcare share price snapshot

Since the beginning of 2022, the Fisher & Paykel Healthcare share price has tumbled more than 40%.

Notably, the company’s shares reached a 52-week low of $17.14 last week on the back of weakened sentiment.

Based on today’s price, Fisher & Paykel Healthcare presides a market capitalisation of approximately $10 billion.

The post Why is the Fisher & Paykel share price heading south today? appeared first on The Motley Fool Australia.

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

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The Piedmont Lithium Inc (ASX: PLL) share price has slipped 18% lower in the past month of trade.

The loss reverses a strong period in May for the share. Investors thrust it off a low point of 65 cents on 12 May before finishing the month at 93.5 cents.

Before the open on Wednesday, the Piedmont Lithium share price is set to fetch 69.5 cents apiece.

Is Piedmont a buy?

The price of lithium carbonate has remained buoyant in June. It currently fetches US$71,380 per tonne after curling back up in recent weeks.

Amid the market volatility, lithium shares have been hit some of the hardest. Following a bearish note from Goldman Sachs on the sector, investors sold off lithium stocks at pace.

Despite this, Piedmont still has buy ratings from 9 brokers in May, including JP Morgan and Canaccord Genuity, per Bloomberg data.

With respect to Piedmont’s US listing (NASDAQ: PLL), JP Morgan values the share at a premium US$92 apiece. It currently trades at US$49.10.

Regarding Piedmont, it said:

PLL is a pre-production lithium company that is working to develop four key projects – Carolina Lithium, Abitibi Hub, Atlantic Lithium, and a 2nd Hydroxide Plant – that we think should all see positive developments this year.

Once these projects are completed, PLL should be a low cost producer of both spodumene (preferred feedstock for lithium hydroxide) and lithium hydroxide (required for long-range EV batteries).

Piedmont’s advantageous sustainability footprint, location, and ability to expand production over time should make it a very attractive partner for companies within the EV supplychain and support Piedmont as it looks to secure the additional funds needed to complete its project.

What the broker hasn’t mentioned, however, is the current systematic risks that keep being priced in by the market.

Piedmont is also set to produce lithium in the first half of 2023. There’s no certainty on what prices will be by then.

In the last 12 months, the Piedmont share price has slipped more than 22% into the red.

The post Down 18% in a month, is the Piedmont Lithium share price a buy? appeared first on The Motley Fool Australia.

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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.

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The Allkem Ltd (ASX: AKE) share price has been under severe selling pressure since the end of May.

After reaching an all-time high of $14.38 on 30 May, the lithium mining company’s shares are now fetching $10.15. This represents a fall of almost 30% in just three weeks.

Let’s take a look at what has happened recently with Allkem.

Allkem shares momentarily power off

Despite the company releasing a positive update earlier this month, investors have continued to offload Allkem shares.

On 6 June, the company announced strong conditions in the battery metals market, leading to increased lithium carbonate and spodumene concentrate prices.

However, negative sentiment across the industry brought on by a weakened near-term outlook for lithium has weighed down the Allkem share price.

For context, shares in peers Lake Resources N.L. (ASX: LKE) and Core Lithium Ltd (ASX: CXO) have also declined. They are down 39% and 17% in the past week, respectively.

This follows the release of Goldman Sachs’ bearish analysis on the lithium sector which saw investors head for the exits.

The broker noted that fundamental mispricing has generated an outsized supply response well ahead of demand.

Because of this, Goldman Sachs forecasts a lithium price correction to as low as US$16,000 per tonne in 2023.

Currently, the going rate for lithium carbonate per tonne is around US$71,400.

When the report came out on 1 June, Allkem shares tanked 15% on the day.

And since then, its shares have recorded just four days in the green out of the last 14 trading days.

While the industry pushed back after Goldman Sachs’ report, no one knows exactly where the price of lithium will be next year.

Allkem share price snapshot

Despite coming off a horrid run, the Allkem share price has surged by 70% over the past 12 months.

However, looking at year to date, the company’s shares are relatively flat for the period, down around 2%.

Allkem commands a market capitalisation of approximately $6.25 billion.

The post Why has the Allkem share price tumbled 30% from its May all-time high? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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If you’re looking for big dividends, then South32 Ltd (ASX: S32) shares could be worth a closer look.

It has been tipped to reward its shareholders with some big dividends in the coming years.

What are analysts saying about South32 and its dividend?

According to a recent note out of Citi, its analysts are very bullish on South32 shares.

In response to the company’s strategy update at the end of last month, the broker has put a buy rating and $5.50 price target on its shares.

Based on the current South32 share price of $4.16, this implies potential upside of 32% for investors over the next 12 months.

But it gets even better. Citi is forecasting a fully franked 38 cents per share dividend in FY 2022 and a fully franked 40 cents per share dividend in FY 2023.

This implies huge yields of 9.1% in FY 2022 and 9.6% in FY 2023 for income investors.

What did the broker say?

Citi believes that the South32 share price is trading at a very attractive level compared to peers and highlights its exposure to in-demand metals.

The broker commented:

S32 held a strategy update today and there was little to change baseline forecasts save for higher FY23/24 capex. Costs pressures are evident – but are industry not company specific. S32 has production growth, trades at a discount to DCF and on low valuation multiples. What’s not to like compared to peers. While China near term commodity demand is a concern, the midterm outlook for key S32 metals is robust enough.

All in all, this could make South32 one to consider if you’re on the lookout for big dividends.

The post How big will the South32 dividend be in 2023? appeared first on The Motley Fool Australia.

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

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The Adairs Ltd (ASX: ADH) share price has fallen on hard times this year.

Despite finishing 3.64% higher to $1.85 yesterday, the homewares and furniture retailer’ shares are down 54.32% in 2022.

Down, but not quite as low, the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is also in the red this year by 25.54%.

Let’s take a look at what’s impacted Adairs shares lately.

What’s driving Adairs shares lower these past few months?

The Adairs share price has continued to head south following weakened investor confidence on the ASX.

With inflation levels spiking to 5.1% in the quarter ending 31 March, the Reserve Bank of Australia (RBA) tightened its monetary policy.

This saw the central bank use its toolkit to cool down the hot inflation by raising interest rates.

The monthly household spending report for April indicated an uptick in buying furnishings and household equipment, up 14.9%. However, with May’s report set to be released on 12 July, this could show a drop-off in consumer spending.

This follows the RBA’s decision to aggressively ramp up the official cash rate by 0.5% this month to 0.85%.

Furthermore, the RBA governor, Philip Lowe, warned that more rate hikes in 2022 will impact the cost of living.

A number of economists expect the cash rate to lift to 2.35% by the end of the calendar year.

In Adairs’ first-half result, there was a drop-off across key metrics compared to the prior corresponding period.

Earnings before interest and tax (EBIT) and net profit after tax (NPAT) took a significant hit brought on by COVID-related operational disruptions.

However, with the COVID-19 era almost behind us, the headwinds outlined above could weigh down the company’s current financial performance.

Adairs share price snapshot

A disappointing 12 months has led the Adairs share price to register a loss of almost 60%.

It’s worth noting that its shares reached a 52-week low of $1.65 last week, before recovering some lost ground.

Based on valuation metrics, Adairs commands a market capitalisation of approximately $305.8 million.

The post The Adairs share price is down 54% in 2022. What’s happened? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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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If you’re an income investor in search of dividend shares to buy to combat rising inflation, then you may want to look at the ones listed below.

Analysts are very positive on these dividend shares and are forecasting attractive yields from them in the coming years. Here’s what you need to know:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to consider is leading baby products retailer, Baby Bunting.

Thanks to its leadership position in a less discretionary category which benefits from around 300,000 births a year, Baby Bunting has been tipped to continue growing at a solid rate over the coming years.

Citi is particularly bullish on Baby Bunting and currently has a buy rating and $6.22 price target on its shares.

The broker commented: “[W]e forecast a FY21 to FY24 EPS CAGR of 17%, and see growth being driven by i) rollout, ii) ramp up of new stores, iii) margin expansion and iv) penetrating existing categories with low presence. Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions.”

As for dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.17, this will mean yields of 3.8% and 4.5%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another top ASX dividend share to consider is Telstra. It is of course Australia’s largest telecommunications company.

Telstra could be a great option in the current environment given its defensive qualities and attractive yield. In addition, Telstra’s outlook is now arguably the most positive it has been in over a decade. This is thanks to the success of its T22 strategy which ends this year and the potential of its upcoming T25 strategy.

Management is very confident in its plans and expects the T25 strategy to deliver solid and sustainable growth in the coming years. This could bode well for Telstra’s dividends.

For now, though, the team at Ord Minnett is expecting fully franked 16 cents per share dividends again in FY 2022 and FY 2023. Based on the current Telstra share price of $3.82, this will mean yields of 4.2%.

In addition, Ord Minnett sees a lot of value in its shares at the current level. Earlier this week it reiterated its buy rating with a $4.65 price target.

The post 2 ASX dividend shares that brokers are tipping as buys right now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Baby Bunting. 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://www.fool.com.au/2022/06/22/2-asx-dividend-shares-that-brokers-are-tipping-as-buys-right-now-2/

The founder of Fortescue Metals Group Limited (ASX: FMG), Andrew ‘Twiggy’ Forrest, has suggested the best industry to be growing in is hydrogen.

But why is Twiggy talking about hydrogen? Fortescue may be best known as an iron ore miner, but it’s in the process of becoming a major player in green hydrogen. The company is planning to take a global leadership position in green energy and technology.

What’s green hydrogen?

Hydrogen is seen as a future-focused resource in a decarbonising world.

Fortescue is looking to produce hydrogen with as little impact on the environment as possible.

Green hydrogen is produced by using renewable energy such as solar.

Fortescue is investing to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030.

Why is green hydrogen so attractive?

Fortescue wants to make green hydrogen the most globally-traded seaborne commodity as the world looks to different resources for energy, away from fossil fuels.

However, Forrest also thinks that green hydrogen can help with current soaring energy prices triggered by various events, including the Russian invasion of Ukraine.

Forrest said (as quoted by the Australian Financial Review):

I don’t know of a better industry to be pivoting towards when fuel prices are going through the roof than an industry where you can make all your own fuel. We smoke $3.5 billion worth of fossil fuel into the atmosphere every year. That is one hell of a pool of capital annually to invest into your own fuel production and green iron systems.

Is there any demand for green hydrogen?

Fortescue Future Industries (FFI) – the green division of Fortescue – and German-based international energy company E.ON have signed a deal to supply up to five million tonnes of green hydrogen per year by 2030. That will equate to a third of Fortescue’s production.

E.ON and FFI’s broader ambition is to “lead the decarbonisation of Europe and to strengthen security of green energy supply at a time when Europe needs to reduce its energy dependence on fossil fuels from Russia as quickly as possible”.

At the time of that announcement, Forrest said:

The announcement of this historic partnership today aims to diversify the future energy security in Europe. Green energy will reduce fossil fuel consumption dramatically in Germany and quickly help substitute Russian energy supply, while creating a massive new employment intensive industry in Australia. This is a cohesive and urgently needed part of the green industrial revolution underway here in Europe.

FFI also signed a “multi-billion-pound-deal” with construction giant J C Bamford Excavators (JCB) and Ryze Hydrogen for 10% of FFI’s global green hydrogen projection.

FFI is expecting green hydrogen production to grow to 50 million tonnes per year in the 2030s.

Fortescue share price snapshot

Over the last month, the Fortescue share price has fallen by 13%.

The post ‘I don’t know of a better industry to be pivoting towards’: Twiggy talks up hydrogen play amid soaring fuel costs appeared first on The Motley Fool Australia.

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• Fortescue share price rebounds 3% today
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• Why are ASX 200 iron ore shares getting hammered on Monday?
• Fortescue share price plunges 7%, but here’s why Twiggy’s not worried about a Chinese iron ore cartel

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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://www.fool.com.au/2022/06/22/i-dont-know-of-a-better-industry-to-be-pivoting-towards-twiggy-talks-up-hydrogen-play-amid-soaring-fuel-costs/

The top economists at the S&P/ASX 200 Index (ASX: XJO) banks have delivered their outlooks on a recession in the United States.

While the US may be far from our shores, if the world’s top economy dips into a recession, the ripple effects will almost certainly be felt here.

So, what are the ASX 200 banks forecasting?

US inflation and rates soaring

The May inflation rates out of the US, released last week, surprised most economists to the upside. While inflation had dipped slightly in April from the March figures, it headed higher again in May, reaching 8.6%. That’s the fastest pace of consumer price increases in 40 years.

The higher-than-expected inflation figures prompted the US Federal Reserve to hike the official interest rate by 0.75%, the biggest single rate hike since 1994.

With rates on the rise and inflation running hot, is the US heading for a recession?

According to the top economists at the ASX 200 banks, quite likely. But investors need not necessarily be overly alarmed.

A technical recession occurs when a country’s GDP declines for two consecutive quarters.

While chief economist at Commonwealth Bank of Australia (ASX: CBA) Stephen Halmarick believes a recession in the US is likely, he doesn’t expect the world’s biggest economy to implode.

According to Halmarick (courtesy of The Australian Financial Review):

It’s more than likely to meet the technical definition of a recession, but that’s not the same as a collapse in the economy. People are expecting to go from boom-like conditions to a collapse, and there’s a pathway in between…

It’s not negative growth for the year, but there may be two quarters of negative growth… We’re expecting a slowdown because the Fed will take monetary policy into restrictive territory.

ASX 200 banks address US recession impacts on Australia

As far as the impact of a US recession spreading to Australia, Westpac Banking Corp (ASX: WBC) chief economist Bill Evans said financial markets, the Aussie dollar, and confidence could all play a role.

Should the US enter a recession, it would likely result in a stronger Aussie dollar.

Although falling confidence “would certainly lower expectations for economic activity,” he said, impacting Australia’s own growth outlook.

Evans added:

If business confidence gets hit hard, then people would lower their expectations for business investment, and if consumer confidence gets hit hard, then it’s all about consumer spending and house prices.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) chief economist Richard Yetsenga highlighted that it’s really the severity of any potential US recession investors should keep an eye on.

According to Yetsenga (quoted by the AFR):

The US economy is operating well beyond capacity and two quarters of modestly negative GDP need not be all that disruptive. A deep recession that is associated with large-scale unemployment, business bankruptcies and credit rationing would be more concerning and would directly impact Australia.

However, the ASX 200 bank economist doesn’t believe that’s likely. “US consumers look to be in very good shape suggesting the downturn in consumption will only be moderate,” he said.

Should a US recession be on the cards, National Australia Bank Ltd (ASX: NAB) chief economist Alan Oster believes that’s most likely to happen “in mid-to-late 2023”.

“We would, however, downplay the idea that a recession is only when there are two successive quarters of negative GDP growth,” he added.

Oster said the US could face “recession-like” conditions.

The ASX 200 bank is forecasting slower GDP growth to 1.1% over the next two years while it expects US unemployment to rise from the current 3.6% to 4.8%.

The post Worried about a US recession? Here’s what the ASX 200 banks are forecasting appeared first on The Motley Fool Australia.

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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 recommended Westpac Banking Corporation. 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://www.fool.com.au/2022/06/22/worried-about-a-us-recession-heres-what-the-asx-200-banks-are-forecasting/

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed higher. The benchmark index rose 1.4% to 6,523.8 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to rise again on Wednesday following a strong night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.65% higher this morning. On Wall Street, the Dow Jones rose 2.15% and the S&P 500 climbed 2.45%, and the Nasdaq stormed 2.5% higher.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.9% to US$110.58 a barrel and the Brent crude oil price has risen 0.6% to US$114.83 a barrel. Strong demand and tight supply boosted prices.

PointsBet rated as a buy

The PointsBet Holdings Ltd (ASX: PBH) share price could have plenty of upside according to analysts at Bell Potter. This morning the broker retained its speculative buy rating with a trimmed price target of $5.25. It notes that SIG Sports Investments Corp has made a strategic investment into the company. Its analysts appear pleased and “view the strengthening of the cash position as key given it helps alleviate the major concern with the company.”

Gold price drops

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.3% to US$1,834.5 an ounce. Rising bond yields reduced the appeal of the safe haven asset.

Goodman selling overdone

Analysts at Goldman Sachs believe the selldown of the Goodman Group (ASX: GMG) share price has been overdone. This morning the broker reiterated its buy rating and $25.40 price target on the company’s shares. It commented: “GMG and VCX are well-positioned to absorb higher funding costs and should perform well in this environment.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Broker names 2 of the best ASX 200 shares to buy now
• How does the Macquarie dividend stack up against the ASX big four banks?
• Why GrainCorp, PointsBet, Weebit Nano, and Westpac shares are racing higher
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 3 ASX All Ordinaries shares going great guns on Tuesday

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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What a rollercoaster ride it has been for the Zip Co Ltd (ASX: ZIP) share price.

From reaching an all-time high of $14.53 in February 2021, the buy-now pay-later (BNPL) shares are now trading at 53 cents. That represents a massive 96% decline in just 16 short months.

And even when you look at year-to-date, its shares are down 90%. This means the share price would need to increase by 900% to break even.

While you may think Zip shares are too cheap at current valuations, here’s why I won’t be buying at all.

Investors fall out of love with the BNPL industry

The once gleaming BNPL industry was popular among investors as consumer trends shifted during the pandemic.

Government stimulus packages among record low interest rates drew an insatiable appetite for shoppers.

However, as quickly the BNPL market soared, it has now almost turned to dust.

To put that into perspective, Zip was once valued more than $6 billion at its height. More than retail giant, JB Hi-Fi Limited (ASX: JBH).

Today, the BNPL company has a market capitalisation of around $371.49 million. A staggering fall of 94%.

Why I won’t be a buyer of the Zip share price

With so many market entrants to the BNPL sector, it has become increasingly crowded.

Recently, tech behemoth Apple Inc. (NASDAQ: AAPL) also signalled its move into the BNPL space.

Titled “Apple Pay Later”, the service offering doesn’t charge any interest or late payment fees to customers.

In addition, a number of major Australian banks such as Commonwealth Bank of Australia (ASX: CBA) have promoted their own offering.

Furthermore, Zip is experiencing credit losses outside its target range. With the latest figures at around 2.6% of total transaction volume, this may increase due to the current macroenvironment.

Interest rate hikes due to soaring inflation levels are leading some economists to predict a recession in 2023.

Essentially, what this means is that consumers are less likely to spend on discretionary items when interest rates are high. The cost of debt such as credit cards, personal loans and mortgages will require extra payments, affecting consumer spending habits.

The post The Zip share price is down 90% in 2022. Why I won’t be buying appeared first on The Motley Fool Australia.

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More reading

• Zip share price falling again as market experts argue for UK and US exit
• Why A2 Milk, Bubs, Evolution, and Zip shares are rising despite the selloff
• The Zip share price is actually climbing today. What’s going on?
• Is the ‘path to profit impossible’ for Zip shares?
• ASX 200 midday update: Block and Zip crash amid market selloff

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 positions in and has recommended ZIPCOLTD FPO. 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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