Stock Pick

  • 2 ASX shares for a first-time investor

    Piggy bank in front of blackboard chart with rising arrow

    One positive outcome I have seen out of the market turmoil on the S&P/ASX 200 Index (ASX: XJO) in 2020 so far has been the renewed interest in the share market from some first-time investors keen to take the plunge.

    Investing is a hard game to master, but one that is equally rewarding if you have the patience and develop the right temperament. Whilst you are sharpening your game, I always think it’s best to go for investments that aren’t just one single company at first.

    So with that in mind, here are two ASX shares I think would make a great choice for a first-time investor.

    iShares Global Consumer Staples ETF (ASX: IXI)

    This exchange-traded fund (ETF) works by holding a basket of underlying shares within one investing vehicle. In this way, you can reduce your risk by spreading your capital across many different companies. IXI holds only companies that are in the ‘consumer staples’ space. Consumer staples are the goods and services defined as ‘needs’ rather than ‘wants’. Think food, drinks and household essentials.

    As such, the companies that make them are usually regarded as ‘safe’ investments as demand for their products is unlikely to ever go away. IXI’s top holdings include names like Nestle, Coca-Cola, Clorox and Unilever. As you can see, these companies hail from all over the world and not just Australia. This makes this ETF a great stock to hold for diversification in my view, and I think it would form a great foundation for the starter portfolio of a first-time investor.

    Magellan Global Trust (ASX: MGG)

    Magellan Global Trust is a listed investment trust (LIT), which works in a similar fashion to an ETF in that it holds a basket of shares rather than just one company. However, the main difference is that Magellan Global Trust has an active management team which aims to select a group of diverse companies which it believes are the best in the world.

    Currently, these include Starbucks, Tencent, Alphabet (Google), Mastercard, Pepsico and Microsoft.

    Magellan Global has a strong history of using this philosophy to generate market-beating returns for its investors. Since 2017, it has managed 12% per annum on average, which isn’t bad considering the massive crash in global share markets we have seen in 2020.

    Again, the calibre, as well as the diverse range and global reach of these companies, makes Magellan Global Trust a great first share to build up from, in my view.

    For another top ASX share we Fools would recommend, check out the free report just below!

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    Returns as of 6/5/2020

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Starbucks, Coca-Cola, Mastercard, and PepsiCo. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Mastercard. The Motley Fool Australia owns shares of iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Alphabet (A shares) and Mastercard. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 2 ASX shares for a first-time investor appeared first on Motley Fool Australia.

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  • ASX 200 finishes up 1.4%, gold miner share prices surge

    ASX 200

    The S&P/ASX 200 Index (ASX: XJO) ended the day 1.4% higher to 5,405 points as the share prices of gold miners surged.

    China continues to ramp up the pressure on Australia with different commodities according to media reporting.

    Here are some of the biggest ASX 200 headlines from the day.

    Gold miners jump

    As volatility starts ramp up again investors are looking for safe havens like ASX 200 gold miners. The biggest gainers were:

    The Silver Lake Resources Limited. (ASX: SLR) share price grew almost 9%.

    Gold Road Resources Ltd (ASX: GOR) saw its share price rise over 7%.

    Saracen Mineral Holdings Limited (ASX: SAR) experienced a 7% share price rise.

    The Resolute Mining Limited (ASX: RSG) share price went up 6.9%.

    Boral Limited (ASX: BLD) 

    The ASX 200 construction business today announced that it has increased and extended its debt financing facilities with a new US private placement note issue of US$200 million, approvals for new two-year bank loan facilities of $365 million and approvals to extend $665 million of the existing $750 million.

    Boral’s operations are still permitted and encouraged to continue, though there have been limitations in some locations. The company reported that revenue and volumes were down with lower profit margins.

    The Boral share price finished 2.3% lower, it was one of the worst performers within the ASX 200 today.

    Investors send the Xero Limited (ASX: XRO) share price down further

    After a sizeable drop yesterday in reaction to the ASX 200 cloud accounting software company’s FY20 report, the Xero share price fell another 5.6% today.

    Xero reported that free cash flow increased by 320% to NZ$27.1 million. Net profit after tax (NPAT) came in at $3.3 million, an improvement from the NZ$27.1 million loss in FY19. As free cash flow grows it should mean investors are more willing to pay for a higher Xero share price over time.

    Whilst Xero reported solid growth numbers in FY20, the early trading in FY21 has showed that Xero is being affected too. The uncertainty is why Xero was unable to provide much guidance for FY21.

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    Returns as of 6/5/2020

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    More reading

    The post ASX 200 finishes up 1.4%, gold miner share prices surge appeared first on Motley Fool Australia.

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  • EUR/USD Forecast: Under Pressure Below 1.0800, Bearish Below 1.0760

    EUR/USD Forecast: Under Pressure Below 1.0800, Bearish Below 1.0760EUR/USD Current Price: 1.0782 * The EU and Germany will publish their preliminary estimates of Q1 GDP this Friday. * US President Trump pledged for a stronger dollar, lifting the currency. * EUR/USD under pressure below 1.0800, bearish below 1.0760.The greenback stands victorious across the FX board for a second consecutive day. The EUR/USD pair fell to 1.0774 and closed the day some 10 pips above the level. The dollar surged on the back of comments from US President Trump, who stated that "it's a great time to have a strong US Dollar." His words coupled with plummeting equities, still suffering the echoes of Fed's Powell latest statement, as he said that the US Central Bank has no plans to take rates below zero, and noted that policymakers are aware of the risks of a steeper economic downturn.Market players ignore macroeconomic data. Still, Germany published its April inflation figures, with the monthly CPI rising by 0.4%, and the annual reading printing at 0.8%, both meeting the market's expectations. The Wholesale Price Index, however, plunged, down by 3.5% when compared to a year earlier. The US has just released Initial Jobless Claims for the week ended May 8, which resulted at 2.98 million, worse than the 2.5 million expected.This Friday, growth will be in the spotlight as Germany will publish the preliminary estimate for Q1 GDP, seen at -2.2% from 0.0% previously, while the EU will also release its GDP for the three months to March, foreseen at -3.8%. The US will publish the preliminary estimate of the Michigan Consumer Sentiment Index for May, foreseen at 68 from 71.8 previously, and April Retail Sales, seen down by 8.6% in the month. EUR/USD short-term technical outlook The EUR/USD is trading at the lower end of its latest range, slowly grinding higher. Nevertheless, the pair remains within familiar levels and with no clear sign of an imminent breakout. The 4-hour chart shows that it is trading below all of its moving averages, while the Momentum indicator heads firmly lower within negative levels. The RSI, in the meantime, consolidates around 38, all of which maintains the risk skewed to the downside. Further declines are to be expected on a break below 1.0760, the immediate support.Support levels: 1.0760 1.0720 1.0680.Resistance levels: 1.0830 1.0865 1.0890View Live Chart for the EUR/USDSee more from Benzinga * EUR/USD Forecast: Remains Within Familiar Levels, Despite A Stronger Dollar * AUD/USD Forecast: At Daily Lows Although Still Above The 0.6400 Level * AUD/USD Forecast: Retreated From Highs But Retains Its Positive Tone(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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