Stock Pick

  • Nord Stream 2 Could Sever Transatlantic Ties

    Nord Stream 2 Could Sever Transatlantic Ties(Bloomberg Opinion) — U.S. President Donald Trump is furious at Germany for many reasons, not all of them fathomable. In phone conversations with Angela Merkel, he’s allegedly called the German chancellor “stupid” and denigrated her in “near-sadistic” tones. Though this be madness, as the Bard might say, there is — on rare occasions — method in it. One such case is Nord Stream 2.It is an almost-finished gas pipeline under the Baltic Sea between Russia and Germany, running right next to the original Nord Stream, which has been in operation since 2011. “We’re supposed to protect Germany from Russia, but Germany is paying Russia billions of dollars for energy coming from a pipeline,” Trump roared at a recent campaign rally. “Excuse me, how does that work?”As is his wont, the president thereby conflated many things. One of his grievances is that Germany has long been scrimping on its military spending, in effect free-riding on U.S. protection, for which he wants to punish his “delinquent” ally. Another is that the European Union, which he considers Germany’s marionette, allegedly takes advantage of the U.S. in business. Trump also wants to sell Europe more American liquefied natural gas (LNG).But Trump isn’t the only American trying to stop Nord Stream 2. In December, Congress aimed sanctions at a Swiss company that supplied the ships to lower the pipes into the water. This delayed the pipeline’s launch. Then Russia sent another vessel to finish the job. So this week a bipartisan group of Senators moved to widen the sanctions in order to kill Nord Stream 2 altogether.The problem is that if this new round becomes law, it will amount to an all-out economic assault on Europe. It could hit individuals and companies from many countries that are only tangential to the project — by underwriting insurance for the pipeline, say, or providing port services to the ships involved.Considering this an instance of illegal American extraterritoriality, the German government now plans to make the EU retaliate against the U.S. Trump, in the heat of America’s “silly season” leading up to November, could then strike back with new tariffs on German cars or a full-blown trade war. The transatlantic alliance, which was already frayed, is close to tearing.To me, this situation increasingly resembles “chicken,” a classic in game theory. The question is whether both sides are merely feigning recklessness (as the game assumes) or are already too far gone. And that applies just as much to the Germans. They like to play the reasonable side in transatlantic fights but deserve just as much blame as Trump and Congress for causing this mess.If Russia were a normal country, the German rationale for this pipeline might make sense. Europe will need more gas, especially to replace much dirtier coal and to supplement renewable sources of energy on the way to becoming carbon-neutral. And to get that gas, it makes sense to diversify — between Norwegian imports, American LNG or any other sort, including the Russian stuff. And piping it into Europe along the shortest route — through the Baltic — is efficient.But Russia is far from a normal country. It has for years been waging hybrid warfare in Europe, ranging from disinformation campaigns to aggression in Ukraine. At Germany’s urging, Russia recently extended a contract with Kiev to keep piping gas through Ukraine for several more years. But in the longer term, the new pipeline gives Russia dangerous geopolitical and strategic options.With two pipelines through the Baltic and another big one through the Black Sea, Russia could in the future cut all central and eastern European countries out of billions in transit fees. The country already controls almost 40% of the EU’s gas market even without Nord Stream 2. Once that goes online, the rest of Europe may become too dependent and therefore vulnerable to blackmail. When Trump calls Germany “a captive to Russia,” he has half a point.This is why Poland and the Baltic republics of Latvia, Lithuania and Estonia also oppose Nord Stream 2. As NATO’s eastern front line and former victims of invasion and aggression, they fear Russia more viscerally than Germans do nowadays. Psychologically, the Poles distrust any deal between Germany and Russia over their heads, because it reminds them of the Molotov-Ribbentrop Pact of 1939, which carved up their region between Nazi and Soviet spheres of influence.My question to the Germans, then, is why they have for years been deaf to these strategic concerns by their partners in NATO and the European Union, while coddling their own pro-Russian business lobbies and, of course, the Kremlin.German intransigence looks even more unsavory when considering who within Germany is most passionately in favor of the pipeline. Support for it skews sharply to the left, with its long tradition of anti-American and pro-Russian leanings. The most egregious example is Gerhard Schroeder, a Social Democrat who was Angela Merkel’s predecessor as chancellor. He’s always been buddies with Russian President Vladimir Putin. These days he also chairs the supervisory board of Nord Stream AG, which is owned by Gazprom PJSC and thus controlled by the Kremlin, as well as the board of Rosneft Oil Co PJSC, a Russian oil giant.This week, Schroeder testified to the Bundestag that Germany and Europe should prepare tough countermeasures against U.S. sanctions. He won support from The Left, a party that descends from the former regime in East Germany.Nord Stream 2 was and is a terrible idea. It’s a geopolitical project disguised as a private business deal. It has shown Germany to be an insensitive and naïve ally, and the U.S. to be a truculent one. It is now rending what little remains of their former relationship. If there is any way to leave these pipes buried and forgotten under the sea, all involved should discreetly and diplomatically search for it. Otherwise, this game of chicken will end the way it’s not supposed to.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andreas Kluth is a columnist for Bloomberg Opinion. He was previously editor in chief of Handelsblatt Global and a writer for the Economist. He's the author of "Hannibal and Me." For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Stock market crash round 2: why more buying opportunities could be ahead

    road sign saying opportunity ahead against sunny sky background

    A second stock market crash in 2020 could occur over the coming months. Risks such as a second wave of coronavirus and rising tensions between the United States and China may contribute to weak earnings growth across many industries.

    While this may lead to disappointing returns in the short run, it could provide buying opportunities for the long run. Through buying high-quality businesses while they offer wide margins of safety, you could benefit from a likely long-term recovery in stock prices.

    A further market crash

    Many listed companies have delivered impressive rebounds since the stock market crash earlier in 2020. However, their performances could be negatively impacted by ongoing risks facing the world economy’s outlook that may lead to a second downturn for share prices.

    Relatively little is still known about coronavirus. As such, it may be too early to say that lockdowns across many major economies will be successful in combatting it. Likewise, even though there was apparent progress in trade talks between the US and China prior to the pandemic, tensions between the two countries could rise. This may cause investor sentiment to come under pressure, which could lead to falling share prices over the near term.

    Margin of safety

    While a further stock market crash may cause some investors to worry, it could provide long-term investors with an opportunity to buy high-quality companies while they offer wide margins of safety.

    Buying a stock at a discount to its intrinsic value may equate to a more attractive risk/reward ratio, since many of the risks it faces may already be priced in. As such, buying undervalued shares could be a means of building a solid portfolio that is well placed to deliver long-term growth as the economy recovers.

    During a stock market downturn, there may be a wide range of businesses that appear to offer good value for money. As such, it may be worth assessing their financial strength and being selective about which companies you purchase.

    Furthermore, buying a diverse range of stocks could be a shrewd move. It may help to protect your portfolio against challenging trading conditions for specific companies and sectors during what could prove to be a difficult period for the world economy.

    Recovery potential

    A stock market crash is not an especially unusual event. Stock prices have a track record of experiencing sharp downturns in a short space of time. The key takeaway for investors is that the stock market has always recovered from its bear markets to produce record highs.

    Therefore, even if there is a further decline in stock prices over the near term, a recovery is very likely. Through purchasing a range of companies while they offer wide margins of safety, you could generate higher returns in the coming years as investor sentiment and company earnings gradually improve.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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  • 2 ASX dividend shares with yields over 6%

    Happy young man and woman throwing dividend cash into air in front of orange background

    With interest rates now at a fresh record low of 0.25%, the attraction of ASX dividend shares has rarely been more acute. Many investors are asking themselves why they’re settling for an interest rate under 2% from the bank when some ASX dividend shares are offering more than triple that in potential yields. After all, 2% will barely cover inflation as it is, you wouldn’t be too much worse having your cash under the mattress.

    But 2020 has seen a lot of former dividend heavyweights deliver cuts in their shareholder payouts. These include the big four ASX banks, Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD).

    So here are 2 ASX dividend shares that: 1) offer grossed-up dividend yields over 6%; and 2) are not likely (in my opinion) to cut said dividend going forward.

    Origin Energy Limited (ASX: ORG)

    Origin is a utility company that provides electricity and gas connections as well as owning several electrical generation assets. I like these kinds of companies as dividend plays, because energy is a very inelastic service (meaning its use doesn’t fluctuate too much, regardless of what else is happening in the economy). Origin shares haven’t been doing too well as of late. Friday’s closing price was $5.95, which is still well below the ~$8.70 highs we were seeing back in February.

    Still, I think this is a safe-and-steady kind of investment that will give off some robust returns over the next few years, especially from dividend payments. On current prices, Origin shares are offering a trailing dividend yield of 5.04%, which grosses-up to 7.2% with full franking credits.

    Metcash Ltd (ASX: MTS)

    Metcash is the company behind the IGA chain of grocery stores in Australia, as well as the Mitre 10 and Home Timber & Hardware chains. The company also owns a small network of bottle shops, which include the Thirsty Camel and Bottle-O brands. Metcash is perennially the underdog in the grocery war, often overlooked for its larger rivals Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL).

    But I think there is value still left in this underdog. Many people prefer shopping at the smaller, friendlier IGAs and the company has managed to hold on to a small but significant market share in the grocery industry overall. And hardware is also a fairly robust and defensive business to be in as well.

    On current prices, Metcash shares are offering a trailing dividend yield of 4.45% – which grosses-up to 6.36% with full franking.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, and Woolworths Limited. 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.

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  • 2 dirt-cheap ASX shares to buy next week

    piles of Australian silver coins

    As the S&P/ASX 200 Index (ASX: JXO) keeps climbing (up another 0.42% on Friday), many investors will be celebrating. Rising ASX share prices normally equates to rising wealth for anyone already invested in ASX shares. But for those investors who might still be sitting on a cash position and looking for more opportunities to invest in, it’s also a bittersweet time to be alive. That’s because the higher ASX shares climb, the more unattractive adding new money to one’s share market portfolio becomes.

    So that’s why I’ve found 2 ASX shares that I still think are dirt cheap today.

    1) A diversified ASX conglomerate

    Washington H. Soul Pattinson & Co Ltd (ASX: SOL) is one of the oldest companies on the ASX and is even older than our modern nation, having started life back in pre-Federation days. Back then, Soul Patts owned a small chain of chemists in Sydney. Today, Soul Patts is a diversified conglomerate that is often described as the ASX’s answer to Warren Buffett’s Berkshire Hathaway. That’s because this company primarily invests in other ASX companies these days (although it still retains a couple of pharmacies). Some of its largest stakes are in the newly-merged TPG Telecom Ltd (ASX: TPG), Brickworks Ltd (ASX: BKW) and New Hope Corporation Ltd (ASX: NHC).

    The Soul Patts share price has recovered somewhat since the lows of March but is still trading far below the highs we saw back in February. At under $20 a share, I think this company is dirt cheap right now.

    2) An ASX telco giant

    Telstra Corporation Ltd (ASX: TLS) is our second dirt-cheap ASX share today. Telstra shares have had an exceptionally good week, rising from $3.12 on Monday to finish on Friday at $3.36 (up 7.7%). Despite this, I think this company is still undervalued. We were seeing prices above $4 last year, and I think Telstra can easily get back there when investors start appreciating its solid dividend yield. On current prices, this amounts to 4.76% (or 6.8% grossed-up with full franking) if you include the special nbn dividends.

    Further, Telstra is also investing heavily in a new 5G network, which could end up paying off handsomely over the rest of the decade. The commercial impacts of a 5G rollout are not too certain just yet, but I’m optimistic Telstra will be able to work it’s new network into a profitable business venture. As such, I think this telco is a good deal at the current prices, with (in my view anyway) a lot of potential upside without too much downside

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. 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.

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  • ASX 200 closes 0.4% higher, Cochlear share price up 6%

    ASX 200

    The S&P/ASX 200 Index (ASX: XJO) finished higher by 0.4% today to 6,068 points. It has managed to stay above that 6,000 level going into the weekend.   

    There continue to be worries about the Victorian COVID-19 outbreak spreading across the state and into other states which are free of community transmissions.

    Cochlear Limited (ASX: COH) leads the way

    The Cochlear share price went up by more than 6% today. It was the best performer within the ASX 200.

    The share price rose after an announcement that the US FDA has approved four of Cochlear’s new products.

    The hearing device business has received approval for the Nucleus Kanso 2 Sound Processor, the Nucleus 7 Sound Processor for Nucleus 22 implant recipients, the Custom Sound Pro fitting software, and the Nucleus SmartNav system.

    These four new systems will be commercially released in the US and Western Europe in the next few months, subject to local approvals.

    The Nucleus Kanso 2 Sound Processor is the first and only off-the-ear cochlear implant sound processor to offer direct streaming from compatible Apple or Android devices. The Nucleus SmartNav system provides wireless, actionable, intraoperative insights to help surgeons with real-time navigation, helping improve surgical outcomes.

    Adbri Ltd (ASX: ABC) share price collapses

    The Adbri share price was crunched by 25.4% today after giving an update about its Alcoa lime supply contract.

    Cockburn Cement, a subsidiary of Adbri (previously known as Adelaide Brighton), has been told by Alcoa of Australia that it won’t be renewing its current lime supply contract. The contract expires on 30 June 2021. 

    The contract makes up around $70 million in annual revenue for the ASX 200 business. However, the loss of the contract isn’t expected to hurt revenue until after June 2021. Management will evaluate potential actions. At this stage management can’t quantify the full financial impact of the contract loss. 

    Adbri CEO Nick Miller said: “We are disappointed with Alcoa’s decision to displace locally manufactured product with imports from multiple sources, particularly considering our almost 50-year uninterrupted supply relationship. We will work quickly to mitigate the impact on local jobs supporting our lime business and we remain committed to supplying our WA resources sector customers.”

    Worley Ltd (ASX: WOR) wins another contract

    The Worley share price dropped around 1% despite announcing another contract win today.

    Worley has been awarded a services contract for its European battery material investment project in Finland. The project is to build a plant that will produce precursor battery material for the European market. The plant will be powered by electricity generated from renewable energy.

    Worley will provide engineering, procurement and construction management services. The ASX 200 company has already completed early engineering and design services for the project. The plant will be built in Finland for the fast-growing electrical vehicle market.

    Pointsbet Holdings Ltd (ASX: PBH) signs on with a US baseball team

    Pointsbet just announced it has been chosen as the first sports betting partner for any Major League Baseball (MLB) team.

    It has signed a multi-year deal to become the gaming partner of the Detroit Tigers MLB team. It’s also the first partnership with any professional sports team in Michigan.

    Pointsbet will have television broadcast-visible branding at Comerica Park and will be featured on the Detroit Tigers Radio Network. It will also have a sponsored presence on the Tigers’ digital platforms. Pointsbet will also feature on ‘The Wood on Woodward’ which is a twice-weekly live streaming show. Finally, Pointsbet will appear in relevant apps.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Pointsbet Holdings Ltd. 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.

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  • Wirecard’s Missing Executive Played Alleged Role in India Deals

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  • Here are the 10 shares that move global markets

    Global Growth

    We Aussies are mostly preoccupied with the S&P/ASX 200 Index (ASX: XJO) and the companies within it for our day-to-day investing activities. And fair enough too. We are a relatively small country, but we have every right to be proud of our companies and the wealth they have created for generations of Australian families.

    But when it comes to the global stage of investing, even ASX blue-chip shares like Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW) are relatively insignificant. I doubt too many investors in Hong Kong, the United Kingdom or the almighty United States of America really care what these companies are doing.

    Last month, I looked at the top 10 companies that move our ASX 200 index. But today, I want to take things up a notch and take a look at which companies move global markets. I’ll be drawing from the Vanguard MSCI Index International Shares ETF (ASX: VGS) for this exercise. VGS tracks the MSCI World Index, which tracks the largest companies across the advanced economies of the world, including the USA, Japan, Canada, the UK and Europe.

    1) Apple

    Everyone knows Apple. The iPhone is perhaps as ubiquitous a product as any – I think almost every person on the planet would know what an iPhone is and how it works. And this is perhaps why Apple is the largest publicly listed company in the world right now. The company’s core product remains the iPhone, but its iPad, Mac, services (like Apple Music and TV) and accessories lines are also formidable in their own right

    2) Microsoft

    Microsoft is a rare breed of company. It remains the only US-listed company to still be in the top 10 American businesses by size in the year 2000 and today in 2020. Its Office suite of products is also renowned around the world, as is its flagship Windows operating system. Microsoft is also heavily invested in the gaming space, where its Xbox consoles remain industry-leading. Microsoft is the ‘original tech blue chip’ and it’s not a company I would want to bet against.

    3) Amazon.com

    Amazon is perhaps one of the most phenomenal growth stories in corporate history. Just 20 years ago, this was a company with a share price of around US$42.50. Today, those same shares of this e-commerce behemoth will set you back around US$2,890 – a staggering 6,700% return. No wonder Amazon’s founder Jeff Bezos is the richest man in the world right now.

    4) Facebook

    Again, everyone knows Facebook and its ambitious and talented (if not controversial) founder and CEO Mark Zuckerberg. But you may not know that Facebook also owns the Messenger, Whatsapp and Instagram platforms as well. The company has also been working on a cryptocurrency of its own as well as a line of virtual reality equipment known as Oculus. Like Zuck or not, Facebook shares are certainly written off at your own peril.

    5) Alphabet

    Facebook’s largest competitor in the world of online advertising is the search engine pioneer known as Alphabet. Alphabet is best known for its Google subsidiary, which holds a fairly monopolistic grip on the global search engine market (outside China anyway). But the company also owns video platform YouTube, the G suite platform of productivity apps, the Android mobile operating system, and (of course) Google Maps.

    6) Johnson & Johnson

    Johnson & Johnson is by far the largest healthcare company in the world. You might know it from its Band-Aid and Listerine personal hygiene products, but that’s just the tip of this company’s iceberg. It is also heavily involved with medical equipment research and manufacturing and also makes pharmaceuticals and other medicines.

    7) Visa

    Visa is a global payments giant. Its devilishly simple business model of clipping the ticket of every transaction going through its network has transformed this former collective into a global payments giant. Chances are every reader gracing this article with their presence has a card in their wallet (or on their phone) with a Visa logo in the corner. Think about that scale, and you have a fair idea of how large this company is.

    8) Nestlé

    Our first non-American company is this Swiss global foods and drinks titan. Nestlé has its finger in so many pies it’s hard to keep track of them all. Nescafe is probably Nestlé’s most successful product line, but there are many others that you might not have even heard of. A large presence in an evergreen industry is never a bad thing, so it’s no surprise Nestlé joins our market movers list.

    9) Procter & Gamble

    Like many large conglomerates, you might not have directly heard of Procter & Gamble. But you will almost certainly have heard of some of their brands. This company is a consumer staples giant, with a truly global market. Some of its brands include Gillette razors, Tide laundry detergent, Old Spice deodorant, Fairy dishwashing liquid and Oral-B toothpaste.

    It wouldn’t be uncommon to find at least one of Procter & Gamble’s products in any Australian household. Think about that in a global context, and we can see why P&G makes the list.

    10) JPMorgan Chase & Co

    JP Morgan is the largest bank in the United States and one of the largest banks in the world. Think of it as a quasi-equivalent of one of our own ASX big four banks, for the US. It has extensive retail banking operations through its Chase branches as well as significant presence in commercial banking as well. It’s also a company with a certain myth surrounding it. J.P. Morgan was a ‘titan of industry’ back in his day and is still held up today as one of America’s capitalistic forefathers.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, Procter & Gamble, JPMorgan, Johnson & Johnson, Telstra Limited, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Facebook, and Visa. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Alphabet (A shares), Facebook, and Vanguard MSCI Index International Shares ETF. 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.

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  • Where to invest $5,000 into ASX 200 shares immediately

    asx growth shares to buy,

    Given the bleak outlook for interest rates in Australia, if I had $5,000 sitting in a bank account, I would put it to work in the share market.

    This is because the potential returns on offer with ASX shares are vastly superior to the 0.05% base rate you’ll get on the Australia and New Zealand Banking GrpLtd (ASX: ANZ) Online Saver account.

    But which ASX shares should you buy? Here are three top ASX 200 shares which I think could provide strong returns for investors over the coming years:

    Altium Limited (ASX: ALU)

    I think this electronic design software provider is a great long term investment option. Especially after recent weakness in the Altium share price means it is trading 20% lower than its 52-week high. This weakness has been caused by a disappointing performance in FY 2020. However, it is worth noting that this has been caused by the pandemic and should only be a short term headwind. Looking ahead, I believe its outlook is as positive as ever. This is thanks to its exposure to the Internet of Things boom which looks like to accelerate in the coming years thanks to 5G internet.

    Nanosonics Ltd (ASX: NAN)

    Another top share that I would invest $5,000 into is Nanosonics. I think the infection control company has a very bright future ahead of it thanks to its market-leading disinfection system for ultrasound probes. Although it has been growing its footprint materially over the last few years, it still only has a 19% share of its global addressable market. Given its status as the best in its class, I expect further market share gains in the coming years. This should lead to strong unit sales growth and recurring revenues from the consumables it requires. But perhaps best of all, is that Nanosonics is planning to launch new products in the near future targeting unmet needs. If these are anywhere near as successful, it could launch the Nanosonics share price materially higher over the coming years.

    Nearmap Ltd (ASX: NEA)

    A final share to consider investing $5,000 into is Nearmap. It is a leading aerial imagery technology and location data company. Its products allow users to conduct accurate virtual site visits without leaving the home or office. This ultimately enables informed decisions, streamlined operations, and, importantly, significant cost savings. Given the quality of its software and the highly fragmented market it operates in, I believe it is well-positioned to grow its market share materially in the coming years. And with the Nearmap share price down 36% from its 52-week high, now could be an opportune to make a patient long term investment.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    See The 5 Stocks

    *Returns as of June 30th

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited and Nearmap Ltd. The Motley Fool Australia owns shares of Altium. 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.

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  • EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive Week

    EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive WeekEUR/USD Current Price: 1.1234 * US upbeat employment data gave high-yielding assets a temporal boost. * Record coronavirus cases in the US put at doubt a possible economic recovery. * EUR/USD neutral, trading within familiar levels for a third consecutive week.The EUR/USD pair hit a daily high of 1.1302, but gave up and settled near daily lows, in the 1.1230 price zone. Risk-appetite lead the way for most of the day, boosted early in the US session by an upbeat Nonfarm Payroll Report. According to official figures, the US added 4.8 million new jobs in June, while the unemployment rate contracted to 11.1%. The headline reading for May was upwardly revised to 2.7 million, adding to the good news. However, the US also reported a record 51,000 new coronavirus cases. New York delayed the re-opening of some indoor activity after California lockdown some areas on Wednesday. Also, Houston reported that ICU capacity is at 102%. Despite hopes a vaccine is nearby and that the economy is doing pretty well, the reality is that things are only getting worse in the world's largest economy.The US celebrates a holiday this Friday, which means the day will be over with London's close. During the European morning, Markit will publish the final versions of the Union's services PMI, seen little changed from preliminary estimates.EUR/USD short-term technical outlook The EUR/USD pair is technically neutral, confined to a 1.1170/1.1330 range for a third consecutive week. In the 4-hour chart, the pair is between Fibonacci levels and moving averages, with the 100 SMA converging with the 23.6% retracement of its latest daily advance at 1.1270. Technical indicators eased within positive levels, now flat around their midlines. There's no scope for a significant breakout during the upcoming sessions, but the risk is skewed to the downside, with better chances of a bearish extension being the next relevant move.Support levels: 1.1210 1.1170 1.1125 Resistance levels: 1.1270 1.1310 1.1350 View Live Chart for the EUR/USDSee more from Benzinga * AUD/USD Forecast: Struggling To Rally Beyond The 0.6900 Threshold * EUR/USD Forecast: Pressuring The Upper End Of The Range * AUD/USD Forecast: Neutral-To-Bearish In The Short-Term, Could Recover Once Above 0.6925(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • The latest ASX stocks to be downgraded by top brokers today

    thumbs down

    The S&P/ASX 200 Index (Index:^AXJO) running out of puff with the big banks like the National Australia Bank Ltd. (ASX: NAB) share price giving up their morning gains.

    But there are others that could be facing some pressure after these leading brokers downgraded their recommendations on these ASX stocks today.

    Weakening platforms

    The Hub24 Ltd (ASX: HUB) share price and Netwealth Group Ltd (ASX: NWL) share price took a hit today after Credit Suisse cut its rating on both.

    The HUB share price tumbled 1.3% to $18.66 while the NWL share price slumped 7% to $8.82 at the time of writing.

    The broker was reviewing the latest industry data for ASX-listed wealth platforms, which saw the industry record its second consecutive quarter of capital inflows in the three months to March.

    Good times can’t last

    “We expect the inflows to be short-lived with the impact of COVID-19 to result in outflows in the typically seasonally stronger June quarter due to superannuation withdrawals and lower contributions,” said Credit Suisse.

    “NWL/HUB remained leaders on net flows, capturing an outsized share from the major institutional platforms who generally remained in outflow.

    “While NWL/HUB are benefiting from switching, we expect switching to temporarily slow in the June quarter as COVID-19 diverts advisers’ attention to servicing clients.”

    Both stocks have also outperformed in recent months and the broker believes consensus expectations may be too lofty.

    Credit Suisse lowered its recommendation on HUB24 to “neutral” from “outperform” and Netwealth to “underperform” from “neutral”.

    Singing out of key

    Meanwhile, UBS cut its rating on the Chorus Ltd (ASX: CNU) share price to “sell” from “neutral”. The NZ and ASX-listed telco outperformed through the coronavirus pandemic as investors sheltered under its relatively defensive earnings and dividends.

    But there’s too much optimism priced into the stock and the broker warns that the company could be cutting its dividend.

    Bad news-flow

    “CNU benefits from being a COVID-19 defensive but share price assumes ‘more for more’ with implied cumulative over-recovery of ~$2bn and implied retail prices over $100 which most consumers can’t afford,” said UBS.

    “Our catalyst tracker expects neutral/negative news over the next 12 months (regulation, dividend policy & 5G launches).”

    The broker is forecasting around a 10% drop in Chorus’ long run dividend to NZ55 cents a share from NZ60 cents a share.

    UBS’ 12-month price target on the NZ stock is NZ$6.75 a share.

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    Brendon Lau owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. 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.

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