Bitcoin (CRYPTO: BTC) has rebounded from modest earlier losses to be up 1% over the past 24 hours.

One Bitcoin is currently worth US$34,611 (AU$45,540). That gives the world’s biggest crypto a market cap $649 billion.

That’s nothing to sneeze at. But it wasn’t too long ago – mid-April, in fact – when Bitcoin claimed a market cap north of US$1.1 trillion. At the time, it was still trading near its all time highs of US$64,829.

Year-to-date, Bitcoin remains up 18%. Again, nothing to sneeze at, if you can stomach the volatility.

But with some 4,000 cryptocurrencies in virtual circulation, we thought we’d turn the spotlight on today’s best performing crypto.

This little known token has gained 40 times more than Bitcoin today

While Bitcoin has gained 1% over the past 24 hours (which may well have changed by the time you read this!), KuCoin Token (CRYPTO: KCS) is up 41% over that same time.

One KuCoin is currently worth US$10.64. That gives it a market cap of US$852 million, ranking it as the 82nd biggest crypto, according to data from CoinMarketCap.

KuCoin is a relative veteran, by crypto standards. It’s been around since October 2017 and quickly rode the crypto bubble of the time to record highs above US$20 by January 2018.

And then… Well, you probably recall what happened when the bubble burst.

KuCoin’s price collapsed within months and spent the next 3 years trading around the US$1 range.

Until 2021 rolled around.

On 12 April this year, KuCoin hit a multi-year peak of US$19.29.

While it’s down considerably from there, KuCoin still handily beats Bitcoin’s year-to-date returns, with KuCoin gaining 1,420% so far in 2021.

What the heck does KuCoin do?

If you’re unfamiliar with KuCoin, don’t worry. Unlike Bitcoin or Ethereum (CRYPTO: ETH), even many crypto enthusiasts can’t name many of the smaller tokens.

So what the heck is the point of KuCoin’s existence?

For that, we turn to CoinMarketCap, which tells us the token was launched:

[A]s a profit-sharing token that allows traders to draw value from the exchange. It was issued as an ERC-20 token running on the Ethereum network and was supported by most Ethereum wallets. The total supply of KCS was set at 200 million, and there is a planned buyback and burn until just 100 million KCS remain. 

As with every cryptocurrency, KuCoin is highly volatile.

While it’s up over 40% today, there are no guarantees as to its performance tomorrow.

The post This little known token has gained 40 times more than Bitcoin today appeared first on The Motley Fool Australia.

More reading

• These 5 cryptos outperformed Bitcoin in FY21, delivering more than 2500%
• This is the only reason to invest in Bitcoin
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• How Tyler Winklevoss plans to go green with Bitcoin
• ASIC just poured cold water on an ASX Bitcoin ETF

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 Bruce Jackson.

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Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

Here’s the data:

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This ethical ETF was the most traded share on CommSec last week and attributable to 2.2% of total trading volume. And despite 94% of the volume coming from buyers, it couldn’t stop the BetaShares Global Sustainability Leaders ETF share price from losing 3.3% of its value over the period. Though, the ETF is up by a solid 11% year to date.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF was popular with investors once again last week. The Betashares Nasdaq 100 ETF was responsible of 2.1% of trades on CommSec, with 89% of the volume from the buy side. The technology-focused ETF fell 1% over the week but recorded a 9.4% gain in June.

Zip Co Ltd (ASX: Z1P)

This buy now pay later (BNPL) provider remains popular with investors. Zip’s shares were involved in 2% of trades on CommSec. Approximately 60% of the volume came from buyers. However, it will have been the sellers that were the happier group. The Zip share price fell 7.5% last week. This was possibly due to concerns that Afterpay could win market share from it in the US with its new pay anywhere offering.

AGL Energy Limited (ASX: AGL)

This energy company’s shares were heavily traded last week and responsible for 1.4% of trades on CommSec. This followed an announcement by AGL which revealed that it has firm plans to split into two separate companies – Accel Energy and AGL Australia. And although buyers were responsible for 70% of the volume, it wasn’t enough to stop the AGL share price dropping 10% last week.

iShares Core S&P/ASX 200 ETF (ASX: IOZ)

Finally, a third ETF was popular with investors. It was involved in 1.4% of trades on CommSec last week, with a massive 90% of the volume from buyers. The ETF was largely flat last week but up 2.2% in June.

The post AGL and Zip shares were among the most traded ASX shares last week appeared first on The Motley Fool Australia.

More reading

• 3 companies that broke their way into the ASX 200 in FY21
• These are the 10 most shorted shares on the ASX
• Got Sezzle (ASX:SZL) shares? What’s in store for FY22?
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• 2 ETFs that could be buys in July 2021

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. owns shares of and has recommended BETANASDAQ ETF UNITS and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) had a wild ride in the last financial year. Emerging from the depths of the COVID market crash, the index ended up gaining nearly 1,400 points – or a record 23.4% – over the 12 months. The index eventually surpassed its pre-coronavirus levels to break its all-time high.

Some companies thrived in these unexpected conditions while others struggled to recover.

Once a quarter, S&P re-evaluates the ASX 200 to ensure the list is up to date. Here are just 3 businesses that did so well last financial year, they were able to climb into the vaunted index.

Zip Co Ltd (ASX: Z1P)

The buy now, pay later (BNPL) provider entered the top 200 in the first quarter of FY21. The company grew 38% during the year to end at $7.57 per share and a market capitalisation of around $4.3 billion.

Big stories that affected the Zip share price last year included partnerships with Harvey Norman Holdings Limited (ASX: HVN) and eBay Australia. The latter deal sent Zip shares rocketing more than 20% at the time. Zip also announced an expansion into Europe and the Middle East in the second half of the year. This news sent the BNPL’s price up 5% on the day.

In its half-year report, Zip reported revenues of $2.3 billion and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of -$14.9 billion.

Kogan.com Ltd (ASX: KGN)

The online retailer was recognised as one of Australia’s 200 largest public companies in the second quarter of FY21. Its value decreased during the 12 months by around 22%. The Kogan share price dropped to $11.58 on the last day of the year and its market cap was about $1.2 billion.

During the financial year, the biggest story about Kogan was its purchase of online retailer Mighty Ape for $122 million. Kogan shares appreciated about 5% on the day of the announcement. Kogan also passed a milestone 3 million “active” customers last year.

For the six months to 31 December, gross sales increased 97% to $640 million and EBITDA was up 184% to $51.7 million. The Kogan share price sank 9% on the news.

Nuix Ltd (ASX: NXL)

Software provider Nuix jumped into the ASX 200 in Q3 of the last financial year. The company only floated on the stock market in December 2020 but, up to 30 June 2021, lost an astonishing 72% in value. Shares were swapping hands for $2.21 and its market cap crashed to just over $700 million. For perspective, its largest market valuation was about $3.8 billion.

The company has been mired in controversy for most of its life as an ASX 200 company. Repeated profit and earnings downgrades sent investors fleeing time and time again. Reports also emerged of poor business practices at the company, including questions over the accuracy of its financial reports.

In May, Australian Federal Police began investigating the company and it was even called out in federal parliament. The first signs of trouble for the beleaguered company came with the release of its first financial report as an ASX-listed entity. The share price plummeted 27% on a 4% decline in revenue to $85.3 million and a net loss of $16.6 million.

The post 3 companies that broke their way into the ASX 200 in FY21 appeared first on The Motley Fool Australia.

More reading

• The Cochlear (ASX:COH) share price drops 3% today
• Near all-time highs, why the ASX 200 could keep running higher
• Suncorp (ASX:SUN) share price bucks market downtrend on ~$84m divestment
• Blazing it? How the top ASX cannabis shares performed in FY21
• How these top ASX biotech shares performed in FY21

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is tumbling lower this afternoon. At the time of writing, the benchmark index is down 0.35% to 7,288.9 points.

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

Appen Ltd (ASX: APX)

The Appen share price is down 4.5% to $12.35. This decline may have been driven by news that a major shareholder has been selling down its holding shortly after building it up. According to a ceasing to be a substantial holder notice, the Capital Group Companies has been selling a significant number of shares just a month after buying them. It most recently sold 583,170 shares for just a touch over $8 million on 1 July.

Aventus Group (ASX: AVN)

The Aventus share price is down 4.5% to $3.15. This follows news that Brett Blundy sold approximately 28.5 million Aventus shares via a blocktrade on Monday. Mr Blundy received $90.4 million for the shares. It is worth noting that he still owns just over 129 million shares in the retail property company.

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs REIT share price has fallen 3% to $1.45. This morning the property company announced the successful completion of a $70 million institutional placement. These funds were raised at $1.45 per new share. HomeCo is raising the funds to acquire Town Centre Victoria Point in Queensland.

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price is down over 4.5% to $1.66. This morning the gold miner revealed that it has fallen short of its full year production guidance. In FY 2021, Ramelius achieved gold production of 272,109 ounces. Although this was a record for the gold miner, it fell short of its upgraded guidance of 275,000 ounces to 280,000 ounces. Management blamed the guidance miss on issues such as rainfall and personnel shortages at the Edna May operation.

The post Why Appen, Aventus, HomeCo Daily Needs, & Ramelius are dropping appeared first on The Motley Fool Australia.

More reading

• Why the Appen (ASX:APX) share price is sinking 5% today
• ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer
• The Ramelius (ASX:RMS) share price is on watch today. Here’s why
• 2 fallen stars of ASX now worth buying: experts
• Here are the 5 worst performing ASX 200 tech shares from FY21

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. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vital Metals Limited (ASX: VML) share price was going gangbusters this morning, flying more than 9% higher in intraday trade.

At the time of writing, the Vital metals share price has lost some of that ground and is trading at 5.4 cents, up 3.85%. Even at this lower price, shares in the mineral exploration company have surged more than 17% in the last 3 trading sessions.

Let’s take a look at what appears to be fuelling the Vital Metals share price in July.

What’s happening with Vital Metals?

The Vital Metals share price received a boost yesterday after the company provided an update on activities at its Nechalacho project in Canada.

According to the announcement, the company has started rare earth production starting with ore crushing.  

Vital Metals noted that its mining contractor Nahanni Construction Ltd completed the first blast of ore at Nechalacho’s North T Zone on 28 June.  The company then started production, with first ore crushed at Nechalacho on 30 June 2021.

Vital Metals managing director Geoff Atkins noted that the company’s crews worked hard on-site through June to accelerate mining activities. In addition, management said that crushing and ore sorting equipment had been installed and was ready to start commissioning.

Vital Metals aims to ramp up crushing and ore sorting at Nachalacho, with full production rates expected to be achieved this month.

Snapshot of the Vital Metals share price

Vital Metals is a mining explorer and developer focusing on rare earths, technology metals and gold projects. The company’s flagship projects include the Nechalacho Rare Earth Project in Canada and Wigu Hill project in Tanzania.

The Vital Metals share price has had a tumultuous year thus far.

Shares in the company started the year at around 3 cents and bolted to a high of 9 cents in mid-March. Since then, the Vital Metals share price has waned, but still remains more than 70% higher for the year.

The post Here’s why the Vital Metals (ASX:VML) share price is flying higher today appeared first on The Motley Fool Australia.

More reading

• Why the Myer (ASX:MYR) share price is up 9% today
• The Cochlear (ASX:COH) share price drops 3% today
• What you need to know about the RBA’s interest rate decision today
• Near all-time highs, why the ASX 200 could keep running higher
• Here’s what leading brokers are saying about the Commonwealth Bank of Australia (ASX:CBA) share price in July 2021.

Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.

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Myer Holdings Ltd (ASX: MYR) shares are surging on Tuesday. At the time of writing, the Myer share price is trading 9.46% higher at 40.5 cents.

The embattled retailer has not announced any price-sensitive news since its half-year results back in March.

Let’s take a look at what else might be propping up Myer shares.

Is this driving the Myer share price?

According to a report published late yesterday by the Australian Financial Review (AFR), Solomon Lew has been buying up Myer shares through Premier Investments Limited (ASX: PMV).

On Monday, Myer recorded more than 40 million shares changing hands, or approximately 5% of its 819.9 million shares outstanding.

Lew is the chair and largest shareholder of Premier Investments which, up until yesterday, already held a 10% stake in Myer.

According to the AFR, “Premier Investments is understood to be keen to increase its stake, to once again seek to bring about change at the struggling retailer.”

A comeback in the making?

Surprisingly, the Myer share price has rallied more than 14% in the new financial year, reaching an 18-month high of 42.5 cents in intraday trading today.

The company’s share price was also a solid performer in FY21, lifting 92% from 18.5 cents to 35.5 cents by 30 June.

Looking back at Myer’s half-year results, the company flagged a 13.1% decline in sales to $1,398 million, driven by store closures and reduced CBD footfall.

Its comparable CBD store sales were far worse, down 32.2% due to a restricted CBD workforce, reduced tourism and subdued confidence from continued lockdowns.

On a more positive note, Myer’s online division delivered $287.6 million in sales for the half-year, up 71.0% against the prior corresponding period.

The company said that its online sales provides “a strong platform to drive further growth and remains [a] focus of future investment”.

The post Why the Myer (ASX:MYR) share price is up 9% today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Vital Metals (ASX:VML) share price is flying higher today
• The Cochlear (ASX:COH) share price drops 3% today
• What you need to know about the RBA’s interest rate decision today
• Near all-time highs, why the ASX 200 could keep running higher
• Here’s what leading brokers are saying about the Commonwealth Bank of Australia (ASX:CBA) share price in July 2021.

Motley Fool contributor Kerry Sun 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 owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX investors have reason to cheer after the Reserve Bank of Australia (RBA) handed down its interest rate decision today.

But the Australia dollar came under pressure as our central bankers poured cold water on rate rise speculators and tapered its bond buying program.

While everyone was expecting the RBA to hold the cash rate at 0.1% this afternoon, it made it clear that the cash rate will stay at the record low until at least 2024.

RBA’s interest rate decision is good news for ASX shares

Low interest rates are good news for global equities, including ASX shares. This is because share valuations typically move in opposite direction to rates.

But the Australian dollar is positively correlated to rates. This is why the Aussie dropped from US75.7 cents to US75.5 cents on the news. Traders are paring bets that rates will rise sooner than expected.

“The Board of the Reserve Bank of Australia (RBA) today announced the holding of the Official Cash Rate at its record low of 0.10%,” said the chief economist at CreditorWatch, Harley Dale.

“That is no surprise to anybody, but it’s also not the real point. Speculation is running wild about interest rates rising before the RBA’s long time ‘deadline’ of 2024 and the RBA is inching into that debate.”

No rate hikes till 2024

The RBA made it clear that it won’t move on rates until actual inflation is sustainably within the 2% to 3% target range.

Even though there is a notable pick-up in inflation recently, RBA thinks it will only be a blip.

“In the short term, CPI inflation is expected to rise temporarily to about 3½ per cent over the year to the June quarter because of the reversal of some COVID-19-related price reductions a year ago,” said RBA Governor Philip Lowe.

“In the central scenario, inflation in underlying terms is expected to be 1½ per cent over 2021 and 2 per cent by mid 2023.”

RBA rate decision tied to inflation and wages

One big reason why the RBA is unconcerned about inflation is because of wages growth – or the lack of.

That may sound funny to some. After all, the unemployment rate fell further to 5.1% in May and more Aussies are in jobs than before the pandemic.

Further, underemployment is also trending down and labour force participation is close to record highs.

But the RBA believes that wages growth will be subdued and that any increase will be gradual and modest.

Cautious optimism behind QE wind-back

However, our central bankers acknowledged that the economic recovery is stronger and has come earlier than expected.

This is probably why the RBA is sticking to using the April 2024 government bond as the benchmark for its yield target of 0.1% instead of using a later dated bond.

While the RBA will continue to buy government bonds as part of its quantitative easing (QE) program beyond the September deadline, it will purchase $4 billion a week until at least mid-November.

We may be witnessing the start of the QE taper in Australia. That won’t be good news for ASX shares as investors have gotten addicted to easy money.

The post What you need to know about the RBA’s interest rate decision today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Vital Metals (ASX:VML) share price is flying higher today
• Why the Myer (ASX:MYR) share price is up 9% today
• The Cochlear (ASX:COH) share price drops 3% today
• Near all-time highs, why the ASX 200 could keep running higher
• Here’s what leading brokers are saying about the Commonwealth Bank of Australia (ASX:CBA) share price in July 2021.

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

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 Bruce Jackson.

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The Cochlear Limited (ASX: COH) share price is flopping today despite no news having been released by the company.

At the time of writing, Cochlear shares are swapping hands for $235.78 apiece. That represents a 2.76% fall from its previous closing price.

While the broader market is also falling today, Cochlear’s drop is more severe.

Right now, both the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) are 0.16% lower.

Let’s take a look at what the hearing device manufacturer and distributer has been up to lately.

The latest news

The last time we heard price-sensitive news from Cochlear was way back in February when the company released its results for the first half of the 2021 financial year.

Cochlear must have bested the market’s expectations. Despite posting a slight loss and a dividend that was 28% less than that of the previous corresponding period, the results boosted the Cochlear share price by 8.4%.

Cochlear share price snapshot

Cochlear’s shares are some of the ASX’s most expensive and their value has continued to climb through 2021.

The Cochlear share price has gained 24% year to date. It has also grown 17% since this time last year.

The company has a market capitalisation of around $15.9 billion with approximately 65 million shares outstanding.

The post The Cochlear (ASX:COH) share price drops 3% today appeared first on The Motley Fool Australia.

More reading

• Near all-time highs, why the ASX 200 could keep running higher
• Suncorp (ASX:SUN) share price bucks market downtrend on ~$84m divestment
• Blazing it? How the top ASX cannabis shares performed in FY21
• How these top ASX biotech shares performed in FY21
• ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer

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. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is edging higher in afternoon trade.

At time of writing, the ASX 200 is up 0.1% at 7,320 points. That’s within a whisker of the index’s all-time closing high of 7,386, reached only 3 weeks ago on 16 June.

Despite retracing slightly from the record highs, it’s also still 2.5% above its pre-COVID closing high of 7,139, set on 21 February 2020.

And in case you’re wondering, the ASX 200 has now gained a rather astonishing 52% since the post pandemic closing low of 4,817 points on 20 March 2020.

This same trend has played out across most major global indexes.

In the United States markets, for example, the S&P 500 (INDEXSP: .INX) closed at another new record high on Friday. (Markets were closed yesterday – overnight Aussie time – for the July Fourth holiday.)

The S&P 500 is up 18% in 2021 and up an eye-popping 89% from the 20 March 2020 pandemic lows.

These kinds of rapid fire gains have many investors feeling a bit skittish that the bull run may be coming to an end. Yet, while there are reasons to be cautious, many market experts believe share markets can keep running higher into 2022…or beyond.

3 reasons the ASX 200 could reset record highs

The top 3 reasons analysts point to in supporting an extended bull run for share markets are the strong rebound in corporate earnings, continued support from global central banks with rock bottom interest rates and quantitative easing (QE), as well as vaccination programs getting ahead of the virus.

We’ve already seen these factors help boost the ASX 200 to new records. But as Bloomberg reports, big names like BlackRock Inc, State Street Global Markets, UBS Asset Management and JPMorgan Asset Management all “expect equity markets to keep rising in the second half of the year”.

Esty Dwek is head of global market strategy at Natixis Investment Managers. According to Dwek:

Vaccination is accelerating globally, major central banks remain extremely accommodative, fiscal support is still present and earnings continue to recover. In such an environment, it is difficult to imagine a very negative scenario for equities.

Marija Veitmane, senior multi-asset strategist at State Street Global Markets agrees that getting a handle on COVID is crucial to supporting the continued bull run. “We still see the success in vaccinations and economic re-opening as the key driving force behind improving economic and earnings outlook, and ultimately equity market gains,” Veitmane said.

Cash on the sidelines

Another factor likely to offer healthy tailwinds to global share markets, like the ASX 200, is that there is still a tremendous amount of money sitting on the proverbial sidelines. And this in an environment with near record low bond yields and cash deposit rates.

How much money?

According to Goldman Sachs (as reported by Bloomberg), US money-market fund assets reached a record US$5.5 trillion (AU$7.2 trillion) during the pandemic.

Carsten Roemheld, capital markets strategist at Fidelity International, says that, “Many indicators suggest there is still overwhelming liquidity in the system that is looking for a home.”

Of course, we can’t expect the same skyrocketing returns over the next 12 months we’ve witnessed over the past 12 months. You have to remember the ASX 200 and other global markets were recovering from a historic pandemic hit.

As for the simmering fears of central banks raising interest rates, signaling the end to the easy money that share markets love, Ben Lofthouse, head of global equity income at Janus Henderson Investors, doesn’t believe that’s a current concern. “For now, monetary policy and fiscal policy remain loose around the world and, in reality, it will be some time before rates start to rise,” he said.

Claudia Panseri, a global equity strategist at UBS Global Wealth Management, agrees. According to Panseri:

The market is usually down quite a bit when you have growth scares and when you believe that there will be a strong tightening or big change in the monetary policy. And I think that both conditions are still not in place to have a major correction.

Nigel Bolton, head of BlackRock’s Fundamental European Equity team, sees the bull run potentially continuing into 2023:

We see really strong earnings growth, not just for this year, not just the bounce back, but actually going forward into 2022 and also, at a slower pace, into 2023 as well. So all of those factors are the reasons why you are still looking at a bull market and we will have wobbles on the way.

Now all shares are not created equal. So which ones are likely to run hottest in the year ahead?

According to Seema Shah, chief global strategist at Principal Global Investors, “Within equities, cyclicals and value should continue to benefit from the likely surge in consumer spending, but investors should also consider secular growth stocks, such as mega-cap technology.”

How the ASX 200 has moved this year

Following a stellar recovery from the COVID-fuelled market meltdown, the ASX 200 has continued to march higher in 2021.

Year-to-date, the index has gained 9.2%.

The post Near all-time highs, why the ASX 200 could keep running higher appeared first on The Motley Fool Australia.

More reading

• Suncorp (ASX:SUN) share price bucks market downtrend on ~$84m divestment
• Blazing it? How the top ASX cannabis shares performed in FY21
• How these top ASX biotech shares performed in FY21
• ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer
• Why ASX energy shares are set to rise again today

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 Bruce Jackson.

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Commonwealth Bank of Australia (ASX: CBA) has been one of the top performing ASX 200 companies of 2021, with the CBA share price jumping more than 20% higher so far this year.

In light of this, investors will no doubt be interested to know where analysts think the CBA share price will be going next, among other things.

What are leading brokers saying about the CBA share price?

With the CBA share price currently fetching $99.35, many leading brokers believe it could have reached its peak for the time being.

For example, a recent note out of Citi reveals that its analysts have a neutral rating on CBA’s shares. And the broker’s CBA share price target of $95.00 implies potential downside of 4.4% over the next 12 months.

Citi is positive on Australia’s largest bank and is expecting a significant share buyback in the near future. However, this isn’t enough for a more positive rating on CBA shares.

The broker commented: “Given the rapid improvement in the domestic economic recovery above expectations, coupled with building excess capital, we have pulled forward our buyback assumptions. We have now incorporated a $5bn buyback in 1H22, which we expect will be announced at the FY21 results in August. The pull forward of our buyback assumption sees us upgrading FY22/23E EPS by ~2.5%. Our target price remains unchanged at $95.”

In respect to the CBA dividend in 2021, Citi is forecasting a fully franked $3.50 per share dividend. Based on the current CBA share price, this will mean a 3.5% yield.

What else are brokers saying?

One leading broker that believes CBA shares are overvalued is Goldman Sachs. Its sell rating and CBA share price target of $80.26 suggests potential downside of ~19% over the next 12 months.

Although the broker acknowledges the strength of the bank, it doesn’t believe it deserves to trade at such a premium.

In May, Goldman explained: “While CBA’s balance sheet is strong, with a sector leading capital position and operationally superior performance on volume growth versus its major bank peers, we do not believe this justifies the 42% premium it is currently trading on versus peers (peers adjusted for ex-dividend; versus 16% 15-yr average).”

However, Goldman Sachs is more positive on the CBA dividend in 2021 than its peers. It is forecasting a fully franked $5.39 per share dividend. Based on the current CBA share price, this represents a 5.4% yield currently.

Another neutral broker

Another broker that believes CBA shares are a fully valued now is Credit Suisse. In May the broker retained its neutral rating and lifted its CBA share price target in line with Citi’s to $95.00.

It believes that CBA’s strong balance sheet could allow the company to undertake a $4 billion share buyback later this year. Credit Suisse also suspects that further buybacks could be coming in the years that follow. Nevertheless, it remains neutral for valuation reasons.

In respect to the CBA dividend in 2021, Credit Suisse has pencilled in a fully franked $3.35 per share dividend. This represents a 3.4% based on where CBA shares are trading this afternoon.

The post Here’s what leading brokers are saying about the Commonwealth Bank of Australia (ASX:CBA) share price in July 2021. 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 Bruce Jackson.

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