Ethereum (CRYPTO: ETH) is inching towards the ‘merge’ finish line, having just completed a successful test run.

Ether is the second-largest crypto by market cap, trailing only Bitcoin (CRYPTO: BTC). However, the Ethereum blockchain is the most used in the world.

Unfortunately, that blockchain also uses a tremendous amount of energy. Like Bitcoin, it employs a proof-of-work protocol to verify transactions and create more tokens. Proof-of-work requires immense computing power across an array of machines.

The so-called merge will see Ethereum shift to a proof-of-stake protocol. This will see validators stake their own Ether to verify transactions and create new tokens. And it will not only speed up transactions, but it will also hugely decrease the amount of required electricity.

A good plan.

Yet one that’s seen years of difficulties and setbacks coming to fruition.

What happened with the merge test?

The dry run carried out on Wednesday indicated that the merge works on a testnet where, as the name implies, developers test new processes before implementing them on the mainnet.

According to Auston Bunsen, co-founder of QuikNode (courtesy of CNBC), “There was no crazy bug that happened. Everything went as smooth as it could be.”

Tim Beiko, the coordinator for Ethereum’s protocol developers, noted that they did encounter “some minor known issues”. But he added that those will be looked into before the next steps of the merge are discussed.

The Ethereum beacon chain

The proof-of-stake protocol tests are being done on what’s known as the beacon chain.

According to Beiko (quoted by CNBC):

We knew that there would be a lot of technical work to address things like the increased centralisation that we see in other proof-of-stake systems. We’ve achieved that with the beacon chain…

At each testnet, we expect the code to be closer to what will be used on the Ethereum mainnet. We’re looking for less friction every time. Hopefully the minor issues we’ve seen today are resolved by the time we upgrade the next testnet.

No action needed by Ethereum users

“Users should be aware that Ethereum’s transition to proof-of-stake requires no action on their part unless they are a validator on the network. The transition also won’t create any new Ethereum tokens,” Beiko added.

The latest proof-of-stake plan requires people interested in being a validator to stake 32 Ether. That’s just over US$57,600 at current prices.

The post ‘No crazy bug’: Here’s the latest on the Ethereum merge appeared first on The Motley Fool Australia.

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• How has the ASX-listed Betashares CRYP ETF been performing?
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• 2 top cryptocurrencies to buy and hold for decades
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• Can the Ethereum price redeem itself in June? Crypto experts weigh in

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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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Listed below are a couple of dividend shares that analysts believe are in the buy zone right now and offer yields that could help combat inflation.

Here’s what income investors need to know about these dividend shares:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is the Charter Hall Long Wale REIT.

It is a property company that invests in high quality real estate assets that are leased predominantly to corporate and government tenants on long term leases. So long, in fact, that at the last count its weighted average lease expiry (WALE) stood at 12.2 years.

Citi is a fan of the company, partly “given the appeal of secure income in uncertain times.” The broker currently has a buy rating and $5.71 price target on its shares.

In respect to dividends, Citi is forecasting dividends per share of 31 cents in FY 2022 and FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.63, this will mean yields of ~6.7%.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider is supermarket giant, Coles.

It could be a high quality option due to its defensive qualities. These are supported by its huge network of supermarket, convenience stores, and liquor stores.

In addition, Coles has a positive growth outlook. This is being underpinned by its refreshed strategy, which is focusing on cutting costs with automation and efficiencies.

Morgans is bullish on Coles. It currently has an add rating and $20.65 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the latest Coles share price of $17.61, this will mean yields of 3.45% and 3.65%, respectively.

The post Analysts name 2 ASX dividend shares to buy to combat inflation appeared first on The Motley Fool Australia.

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• Is the Coles share price a bargain buy right now?
• ‘Attractive, stable’: 2 ASX shares other companies rely on
• Where next for the Coles share price?
• 2 inflation-beating ASX 200 dividend shares experts rate as buys this month
• UBS warns of more downgrades for ASX 200 shares… but not all

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 Wesfarmers 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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The Xero Limited (ASX: XRO) share price fell 2.6% to $79.72 yesterday, taking its losses this month to almost 11%.

However, it will be interesting to see what happens next after the ASX tech share announced that it would be implementing price increases.

There are two key ways that Xero can grow its total operating revenue. It can grow its number of subscribers, and it can also increase the average revenue per user (ARPU).

Xero could soon see a bump in (annualised) revenue after announcing that it was going to be increasing the prices in some of its key markets.

Price increases

Xero is a major accounting software player in Australia, the UK, and New Zealand, with more than two million subscribers across those three countries.

Now it has announced it’s going to be increasing prices for these regions in mid-September 2022.

In Australia, many of its plans are going up by more than 8%. For example, the ‘standard’ Xero subscription in Australia is going up from $54 per month to $59 per month. The ‘premium 100’ package is rising by $14 to $177 per month, while the ‘starter’ package is seeing a $2 per month rise to $29 per month.

Why is Xero raising prices for Australian subscribers? It said:

This price change will help us continue to respond quickly with the tools and services businesses need to operate efficiently in changing environments, and improve Xero for our customers now and in the future.

Xero is also increasing prices in other regions such as the UK and New Zealand. Higher prices could help the Xero share price over time if it leads to more revenue and earnings.

The UK ‘starter’ subscribers will see a £2 per month rise to £14 per month – a 16.7% rise. ‘Standard’ UK subscribers will see a 7.7% rise to £28 per month. ‘Premium’ subscribers will experience a 9% rise per month to £36 per month.

New Zealand subscribers are also going to see a price increase. ‘Starter’ subscribers will get a 6.9% increase to NZ$31 per month, ‘standard’ subscribers will get a 6.4% rise to NZ$66 per month, and ‘premium’ subscribers will see a 7.7% rise to NZ$84 per month.

How will this affect Xero’s financial metrics?

It will be interesting to see how this affects the ARPU, annualised monthly recurring revenue (AMRR), and retention rate statistics over the next 12 months.

Xero has already been reporting growth in its ARPU. In FY22, ARPU rose by 7% to NZ$31.36, total subscribers increased by 19% to 3.27 million, and AMRR increased 28% to NZ$1.23 billion.

These price increases could also help Xero’s profit margins. In FY22, the gross profit margin was 87.3%, up from 86% in FY21. However, Xero is currently investing a lot of its revenue in growth expenditure, such as marketing and product development, so it isn’t generating much free cash flow or net profit after tax (NPAT) yet.

At the end of FY22, Xero had a net cash position of $51.2 million. It had cash and short-term deposits of $936 million, with $884.8 million of convertible notes as a term debt liability.

Foolish takeaway

The price increase is a few months away, but it should come just in time to boost some of the FY23 half-year numbers as that result will be for the six months to 30 September 2022. For example, the annualised monthly recurring revenue should get a boost.

Since the beginning of 2022, the Xero share price has fallen 45% amid the heavy market focus on inflation and interest rates. Time will tell what happens next.

The post Could this help boost the Xero share price in 2022? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• How has the Xero share price performed since reporting FY22 results?
• Here’s why I think these ASX tech shares are buys in June
• How are ASX 200 tech shares performing following the RBA rate hike?
• 2 beaten down ASX tech shares that analysts rate as buys

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

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Shares inside the S&P/ASX 200 Index (ASX: XJO) that offer an above-market average dividend yield tend to be popular among investors.

A high dividend yield is an enticing characteristic for any company, but a high yield can come and go in a flash. Ideally, we are looking for businesses that can reliably grow dividends in a sustainable trajectory. These are companies that have consistently increased their dividends per share year after year, after year, after year — you get the idea.

Sounds dreamy, doesn’t it! Well, here are three ASX 200 shares that have been living up to the ‘dividend beast’ moniker by steadily increasing their dividends over the past five years.

ASX 200 dividend shares that keep on giving

Before we get into the thick of it, the criteria for an ASX 200 company to feature in this list is simple… but not easy. Crucially, annual dividends per share (DPS) paid to shareholders need to have increased each year for the past five years. If the DPS were flat or fell for a single year, it is scratched from consideration.

Steadfast Group Ltd (ASX: SDF)

Australiasia’s largest general insurance broker network, Steadfast has lived up to its name over the last five years when it comes to dividend payments. Despite swinging into unprofitability for a short time during 2020, the company has navigated the financial waters to deliver a steadily growing annual dividend, as illustrated below.

Similarly, this ASX 200 share has provided investors with considerable capital appreciation over the years. Today, the Steadfast share price is 80.4% higher than where it was five years ago. For comparison, the benchmark index is only up ~24%.

Steadfast currently offers a dividend yield of 2.51%. This might seem low, but when accounting for the rate of growth in dividends, this company earns its spot as a bona fide dividend beast.

Cleanaway Waste Management Ltd (ASX: CWY)

This ASX 200 share is one of the dirtier companies on our list, but its dividend track record is anything but rubbish. Playing an integral role in waste management solutions, including recycling facilities, treatment plants, and refineries, Cleanaway has built an admirable business over the years.

While the rate of growth in dividends per share has slowed in the past couple of years, Cleanaway has still managed to consistently increase its payout to shareholders. Notably, earnings in the first half were suppressed by acquisition costs. However, the integration of Sydney Resource Network demonstrates the company’s continued reinvestment for sustaining further potential dividend growth.

Once again, this is a company with a relatively low yield at 1.7%. However, a five-year dividend compound annual growth rate of 20% is impeccable.

Pro Medicus Limited (ASX: PME)

Lastly, this ASX 200 share comes with the smallest dividend yield. However, what it lacks in size it makes up for in growth. At a compound annual growth rate (CAGR) of 43% over five years, Pro Medicus is growing its dividends at a blistering pace (see chart below).

A company growing at a high clip rate while also offering a dividend is typically a peculiar sight. The reason behind this medical imaging company’s unique combination of income and growth is its stellar profit margins. For the 12 months ending December 2021, Pro Medicus derived $37.98 million in earnings on a 47% margin.

For some, a yield of 0.4% may not cut it to be considered a ‘dividend beast’. But, at the rate those dividends are growing, this is arguably a future dividend beast in the making.

The post Dividend beasts: 3 ASX 200 shares that have powered up their dividends over the past 5 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has positions in Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus Ltd. and Steadfast Group Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Steadfast Group 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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Some investors have done pretty well out of ASX lithium shares in recent years as the element saw rising demand from battery and electric car makers.

However, those stocks have fallen somewhat in recent weeks as lithium prices have topped out.

So the big question from those who haven’t yet jumped on the bandwagon is: Is it too late? Is the current dip a buying opportunity, or has the peak passed?

Shaw and Partners portfolio manager James Gerrish gave his thoughts recently on whether it’s still a good idea to buy into these companies.

Lithium can’t be substituted easily 

Regardless of the short-term dip, lithium demand is here to stay, according to Gerrish.

“Lithium ties into the electrification thematic that is taking over the globe,” he said in a Market Matters Q&A.

“The reason for the hype is [that] lithium has unique characteristics that are difficult to replicate. It is a light metal but is able to store large amounts of energy and is an excellent conductor of electricity.”

Gerrish added that while other battery minerals can be substituted with other ingredients, lithium demand is “relatively immune to these risks”.

“Demand for lithium has grown at [approximately] 20% compound annual growth rates through 2017 to 2022 and we think that will continue, while lithium deposits that are technically and economically viable to exploit are rare,” he said.

“This all paints a positive backdrop for the sector, and particularly the higher quality hard rock producers in Australia — the question comes down to timing.”

Which is the ASX share to buy to jump on the lithium bandwagon?

So if you were to become a new ASX lithium share investor right now, which is the stock Gerrish would buy?

“We recently bought IGO Ltd (ASX: IGO), which is highly correlated to fellow battery metal stocks on the ASX,” he said.

“We like IGO given it also has a very solid nickel business that has been [expanded] through the sensible purchase of Western Areas (WSA).”

The IGO share price is down around 20% since its last peak on 4 April.

Gerrish’s team still likes the other two major producers, Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE), but they’re “a crowded play” as with many other green-themed stocks at the moment.

“For that reason we have left room to average our IGO position into weakness,” he said.

“We are also contemplating adding Pilbara or buying Allkem in the Emerging Companies Portfolio using the same philosophy.”

For comparison, Pilbara shares have plunged 35% since 4 April, while the Allkem stock price has also headed south 14% over that period.

The post Is it too late to buy ASX lithium shares? appeared first on The Motley Fool Australia.

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• Here are the 3 most traded ASX 200 shares on Thursday
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• Top brokers name 3 ASX shares to buy today
• Here are the 3 most traded ASX 200 shares on Wednesday

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

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and sank notably lower. The benchmark index dropped 1.4% to 7,019.7 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink again

The Australian share market looks set to end the week deep in the red following a very poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.8% lower this morning. In the US, the Dow Jones was down 1.9%, the S&P 500 fell 2.4%, and the Nasdaq sank 2.75%. Investors were nervous ahead of the release of key US inflation data.

Xero remains a buy

The Xero Limited (ASX: XRO) share price is good value according to analysts at Goldman Sachs. In response to the company’s subscription price increases, the broker has retained its buy rating and $118.00 price target. Goldman said: “We remain confident Xero will be able to execute on these increases while preserving its existing subscriber base, noting their strong track record in putting through increases while driving churn lower.”

Oil prices fall

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 0.8% to US$121.13 a barrel and the Brent crude oil price is down 0.7% to US$122.70 a barrel. News of new lockdowns in Shanghai weighed on prices.

South32 rated as a buy

The South32 Ltd (ASX: S32) share price could be heading higher from current levels according to Goldman Sachs. This morning the broker reiterated its conviction buy rating on its shares and lifted its price target to $5.90. Goldman has boosted its valuation after updating its estimates to reflect its latest commodity forecasts.

Gold price drops

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a soft finish to the week after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.35% to US$1,849.7 an ounce. Stronger bond yields put pressure on the safe haven asset.

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

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• What’s driving the Beach Energy share price to a new 52-week high today?
• Woodside share price soars again despite CEO forecasting oil prices will pull back
• Here are the 3 most traded ASX 200 shares on Thursday
• 3 ASX 200 shares rocking new 52-week highs on Thursday
• ASX 200 midday update: Magellan rebounds, Crown’s takeover boost

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 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.

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Looking for some growth shares for your portfolio? Then take a look at the three listed below that are rated as buys.

Here’s what you need to know about these growth shares:

Life360 Inc (ASX: 360)

The first ASX growth share to look at is Life360. Its massively popular Life360 app is the world’s leading real time, location-sharing app used by families across the world to stay safe and communicate. At the last count, there were over 30 million monthly active users on its platform. Through its freemium model, LIfe360 is generating significant recurring revenue and creating material cross-selling and upselling opportunities for the company.

Bell Potter currently has a buy rating and $7.50 price target on its shares. It believes the company has a huge opportunity to monetise its user base. It notes that the company “has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents.” This includes “insurance, item & pet tracking, senior monitoring, home security and/or identity theft.”

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share that could be in the buy zone is Lovisa. It is a fast-fashion jewellery retailer which has set itself big expansion goals over the coming years. And with an experienced management team behind it who have been there and done that with other retailers, Lovisa appears well-placed to execute on its plans and deliver strong growth over the next decade.

Morgans is very positive on Lovisa and has an add rating and $24.00 price target on its shares. Its analysts are bullish on the company’s global expansion plans and believe “LOV may just prove to be one of the biggest success stories in Australian retail.”

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is this online furniture and homewares retailer. It has been growing very strongly over the last few years thanks to the ongoing shift to online shopping. Pleasingly, this has continued in FY 2022. A recent trading update revealed year on year revenue growth of 23% for the period 1 January to the 30 April.

Goldman Sachs has a buy rating and $12.65 price target on its shares. The broker likes Temple & Webster due to its “early lead in the home furniture category which is still in the early stages of online penetration.”

The post Analysts are tipping these ASX growth shares as buys appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher
• This ASX 300 retail share could grow its global store network by 260%: fundie
• 3 fantastic ASX shares that analysts reckon have huge upside potential
• Why did the Temple & Webster share price plunge 10% today?
• Do experts think the Temple & Webster share price is a massive opportunity?

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Temple & Webster Group 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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The Commonwealth Bank of Australia (ASX: CBA) share price lunged further south today, ending the day 2.59% in the red at $94.95.

Today’s fall brings the bank’s losses this week to almost 10%, as investors seek to price in troubling headlines on Australia’s mortgage market.

Here we take a look at what’s happening.

What’s clamping the CBA share price?

The flavours of surging inflation and rising interest rates make for an ill-tasting economic dish the market looks set to endure next few periods.

Consequently, the current chatter around ASX banks is centred around these factors.

Credit and ratings agency Moody’s Investors Service reckons there are impeding risks on the horizon for Australia’s mortgage market.

A rise in interest rates is generally accepted as a net positive for banks, seeing as it increases net interest income (NII) and widens net interest margins (NIMs), two important factors of income on a bank’s P&L statement.

However, context is equally as important. The fact is, as Moody’s agrees, Aussie banks are heavily tied to the mortgage market, meaning the risk of loan defaults threatens profitability in the sector.

“The risk of mortgage delinquencies will be highest for borrowers with high loan balances and where amounts are close to buyers’ maximum borrowing capacities,” Moody’s said.

“However, we expect delinquency rates will only increase moderately overall this year because interest rates, while rising, are still low.”

This could change if and when the Reserve Bank of Australia (RBA) continues on its path of rate hikes into FY23 and FY24. On Tuesday, the RBA hiked the cash rate by 50 basis points to its highest level in years.

An upward trajectory in rates also marks down the value of housing in Australia, creating a two-pronged threat for banks. One is that borrowers are less likely to sell their house at the price they bought it. Second, the value of mortgage collateral (property) is also lower, hurting bank loan-to-value (LTV) ratios and other metrics.

Going forward, there could also be an increase in the provision for bad debts on banks’ income statements, thereby hurting earnings.

These points appear to have been accepted by the market, resulting in a sell-off throughout the entire sector.

In the last 12 months, the CBA share price has wormed more than 6% into the red and is trading down more than 6% this year to date.

The post The CBA share price has sunk a brutal 10% so far this week. What gives? appeared first on The Motley Fool Australia.

More reading

• What exactly is going on with ASX 200 bank shares and the RBA rate rise?
• Why has the CBA share price cratered 4% today?
• Why are ASX 200 bank shares plunging on Wednesday?
• The CBA share price is now trading on a 3.5% fully-franked dividend yield
• What’s dragging on ASX 200 bank shares like NAB on Thursday?

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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Ah, Bitcoin (CRYPTO: BTC)… It’s still the asset that divides opinions. The flagship cryptocurrency has had a horror few months to be sure. It was only in November last year that Bitcoin was hitting new all-time highs and threatening to break US$70,000 per coin. Today, the cryptocurrency is going for just US$30,310 each at the time of writing. That’s a fall of over 55% in just eight months or so.

For long term bulls, this probably represents yet another buying opportunity before Bitcoin’s inevitable climb to new highs. For bears, it probably proves why no one should have invested in it in the first place.

To be fair, although Bitcoin’s recent falls look awful, anyone who bought the cryptocurrency before the start of 2021 (and still owns it) would still be sitting on some pleasing gains. After all, Bitcoin, even at today’s levels, is up close to 500% from the lows we saw in 2020.

So is this flagship crypto still worth buying today? Well, that’s the $64 billion question.

Is Bitcoin worth considering as part of a diversified investment portfolio?

Several of Bitcoin’s so-called advantages have certainly been eroded in recent months. Investors used to say that Bitcoin was an asset uncorrelated to other assets like shares. Well, that certainly hasn’t been evident over 2022 thus far. The cryptocurrency has fallen in value right alongside many of the global share market’s most volatile growth shares.  

Its supposed inflationary hedge properties have also failed to materialise in a year that has been defined by rising inflation. The asset Bitcoin gets compared to the most – gold – has pretty much held its value of 2022, while Bitcoin’s has tanked. 

But there are reasons to believe Bitcoin is a valuable asset to hold as part of a diversified investment portfolio. Firstly, its use and legitimacy as an asset is still valid. Companies around the world are still figuring out how to use cryptocurrencies and blockchain technology in new and innovative ways. 

Secondly, it remains a scarce asset. There are still only 21 million Bitcoins that can ever be created. Like gold, Bitcoin can’t be ‘printed’ in the way that traditional currencies can. So as long as Bitcoin remains relevant, it should still benefit from this scarcity. This could indeed still give Bitcoin inflation-hedging properties over time, as well as reduce its volatility and correlation to assets like growth shares.

Thirdly, there is still every chance that Bitcoin could be worth far more in the future than it is today. If fund managers (or even central banks) around the world start treating this cryptocurrency as they do gold or other assets outside the share market, demand will steadily rise over time (remember, there will always only be 21 million Bitcoins in existence). This is by no means guaranteed. But in my opinion, it is a distinct possibility.

Foolish takeaway

As such, there are many arguments that can be made that would support an allocation to Bitcoin (or even other cryptocurrencies) as part of a diversified investment portfolio. I am not suggesting anyone bets the house on this asset. But there are far more irresponsible paths to take in my view than a 2-5% allocation to the world’s favourite cryptocurrency.

The post Is Bitcoin still worth buying to diversify your ASX share portfolio? appeared first on The Motley Fool Australia.

More reading

• How has the ASX-listed Betashares CRYP ETF been performing?
• ‘Wherever there’s smoke there’s probably crypto,’ warns Dogecoin founder
• Why are Bitcoin miners selling their holdings?
• What’s the outlook for crypto prices in June? Industry insiders weigh in
• 2 top cryptocurrencies to buy and hold for decades

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. 

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The All Ordinaries Index (ASX: XAO) fell today, but some All Ords shares bucked the trend.

The All Ords Index slipped 1.45% to close at 7240.40 points. In comparison, the S&P/ASX 200 Index (ASX: XJO) shed 1.42%.

Let’s take a look at three All Ordinaries shares that defied the broader index today.

Megaport Ltd (ASX: MP1)

The Megaport share price climbed 2% today to end the day at $6.12. Megaport shares outperformed the technology sector, with the S&P/ASX All Technology Index (ASX: XTX) down 1.25%.

Megaport could be benefiting from positive broker outlook. Goldman Sachs recently placed a $13.10 price target on the company’s shares. This is more than double the current share price.

Citi also recently retained its buy rating but slashed its price target by 26% to $12.30 — still a potential upside of more than 100%.

This ASX All Ordinaries share has a global presence with more than 700 data centres. Goldman predicts the company will grow rapidly in future years as cloud and multi-cloud adoption increases.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa Holdings shares leapt 3.54% in today’s trade to close at $14.03. Lovisa is an Australian jewellery retailer which now has a presence in 15 countries globally.

Lovisa shares are recovering after sliding on Tuesday afternoon after the Reserve Bank of Australia (RBA) lifted rates by 0.5%. Despite plunging by 30% year to date, investors appear to be optimistic the ASX All Ordinaries share can make a recovery.

Morgans has recently placed an add rating and $24 price target on the company’s shares. This is a massive 71% upside on the current share price.

Analysts are optimistic about the company’s global growth plans, as my Foolish colleague James reported. Morgans said: “LOV may just prove to be one of the biggest success stories in Australian retail.”

5E Advanced Materials Inc (ASX: 5EA)

The 5E Advanced Materials share price jumped 4.5% today — the biggest gain of any ASX All Ordinaries share –to finish the day at $3.48. The minerals exploration and production company’s shares jumped 7% in earlier trade before retreating. In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) slid 2.23% today.

5E Advanced Materials has not released any news to the market today. However, on Tuesday it revealed it has signed a non-binding letter of intent for the supply of boron with Corning Incorporated (NYSE: GLW). The company will work with Corning to develop and supply boron for Corning’s products.

Commenting on the deal, CEO Henri Tausch said: “Today’s announcement marks another key milestone for the company as we have now secured an LOI with one of the largest technical glass manufacturers in the world.”

The post 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher appeared first on The Motley Fool Australia.

More reading

• This ASX 300 retail share could grow its global store network by 260%: fundie
• 3 fantastic ASX shares that analysts reckon have huge upside potential
• Megaport share price hits multi-year low: Is this a buying opportunity?
• Goldman Sachs says beaten-up Megaport share price has 100% upside
• Will the Lovisa share price glitter in FY23?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended Lovisa Holdings Ltd and MEGAPORT 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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