I haven’t been personally buying shares for a while now. Since the S&P/ASX 200 Index (ASX: XJO) share market crash back in March prompted me to unload most of my cash position in the markets, I have been watching the ASX 200 crawl higher since. I’ve enjoyed watching my existing and new positions recover over the past 6 months, but I haven’t been spending any new funds, instead accumulating my dividends and stacking cash.

Why? Well, not because I think another crash is imminent (no one really knows that kind of thing). Rather, it’s because, given the current economic and geopolitical environment, I thought there was a fair chance of more turmoil and volatility in 2020. Thus, I thought having a decent cash position was prudent. Now, I have my cash position restored, and with the spate of recent market volatility, I’ve decided it’s about time to get back in the buyer’s seat.

So recently, I’ve purchased units of an ASX exchange-traded fund (ETF). And now that the Fool’s mandated waiting period for discussing said purchase has now expired, I’m free to share that with you!

From zero to F100

My new position is in the BetaShares FTSE 100 ETF (ASX: F100). This ETF tracks the largest 100 shares on the FTSE Index, which is the United Kingdom’s equivalent to our own ASX 200. So why this ETF?

Firstly, this ETF brings a lot of diversification to the table for me. ASX shares are fantastic, don’t get me wrong. But our ASX 200 index isn’t the most diversified in the world. Of the top 10 shares in the ASX 200 Index, 5 are banks. Out of the top 20, we also have 5 mining/drilling companies. Of the entire ASX 200 Index, financials make up 25.13% of the index’s weighting and materials 20.23%.

In contrast, the top 5 companies in the FTSE 100 are pharma giants AstraZeneca plc (LSE: AZN) and GlaxoSmithKline plc (LSE: GSK), followed by British American Tobacco PLC (LSE: BATS), HSBC Holdings plc (LSE: HSBA) and Diageo plc (LSE: DGE).

Following that, we have Unilever plc (LSE: ULVR), Rio Tinto plc (LSE: RIO) (yes, Rio Tinto Limited (ASX: RIO) is dual-listed in London), Reckitt Benckiser Group plc (LSE: RB), BP plc (LSE: BP) and Royal Dutch Shell Plc (LSE: RDSA).

The FTSE 100’s largest sector weighting is to Consumer Staples (17.8%). That brings a lot of diversification to an ASX-dominated portfolio in my view.

Secondly, I think it’s cheap right now. Ongoing ructions in Brexit negotiations, as well as a new outbreak of coronavirus cases in the UK (leading to more restrictions), has recently pushed both the FTSE index and the British Pound Sterling lower. Today, F100 units have a 52-week range of $7.20-$11.50. Yet today, they’re asking just $8.04. That looks pretty good to me.

Foolish takeaway

I was very happy to add this ETF to my portfolio recently. I don’t expect it to be the best performer in my portfolio (although I’m happy to be pleasantly surprised on that front). But it adds ballast in the form of some valuable diversification as well as a healthy stream of dividend income.

More reading

• Gold retreats! Is this a buying opportunity?
• How Elon Musk’s Tesla delivered a body blow to these ASX stocks
• Nufarm’s (ASX:NUF) share price retreats giving back yesterday’s gains
• BHP (ASX:BHP) share price falls despite new option agreement
• Crashing gold price could still rally to record high before year-end: Citi

Sebastian Bowen owns shares of Betashares FTSE 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Diageo, GlaxoSmithKline, HSBC Holdings, and Unilever. 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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While all eyes have been on the S&P/ASX 200 Index (ASX: XJO) and its near-5% slide over the past month, another asset has been slipping too. The gold price has accompanied the ASX 200 on the downwards slope, falling close to 10% in value since reaching a new record high of US$2,161 an ounce back in early August. Today (at the time of writing), gold is asking just US$1,857 an ounce. That’s even below the US$1,921 level, which was the 9-year all-time high that gold breached earlier this year.

Predictably with this move, ASX gold miners and exchange-traded funds (ETFs) have been feeling the pain. The share price of the ASX’s largest gold miner Newcrest Mining Limited (ASX: NCM) is down 17% since early August. Other mid-tier producers like Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) are also down – 11.15% and 19.15% respectively – over the same period. The VanEck Vectors Gold Miners ETF (ASX: GDX) is down 14.96% since 6 August, while the pure gold play ETFS Physical Gold ETF (ASX: GOLD) is down 7.3%.

So is this a buying opportunity for the yellow metal?

An auric opportunity for gold?

It has been interesting to see this precious metal fall so handily at the same time as the share market. Gold is normally viewed as a ‘safe haven’ asset. That means it should theoretically move conversely to ‘growth assets’ like shares. But that logic has always been very flexible anyway, so don’t take too much from it.

So, if you’re interested in owning gold, ask yourself why do investors traditionally own this asset? The conventional reasons range from ‘inflation hedge’ to ‘protection against a share market crash’ or for the more pessimistic investors out there: ‘a hedge against the system collapsing’.

All of these reasons have fairly strong historical backing but are not immune from the odd hole. Regardless, I do think there are strong arguments for a gold case in 2020, especially after this pullback. The biggest drawcard the yellow metal has right now (for me anyway) is its scarcity. Gold can’t be printed or issued, it can only be mined. We’re increasingly living in a world of financial engineering. What central banks around the world are doing right now is truly unprecedented. Never before has the United States had the levels of debt it does today. And never before has the US Federal Reserve had more than US$7 trillion in assets on its balance sheet.

Now it’s possible that all of these factors don’t amount to much in the future. But again, I don’t think we can say it won’t. With numbers of this scale, future inflation, future deflation and a loss of ‘reserve currency status’ are all possibilities for the US dollar. And a precious metal is a good asset to own in all of these scenarios.

Foolish takeaway

I look at gold as more of an insurance policy than anything else. It is a valuable asset that can give your portfolio some diversification and balance. But it’s also an unproductive asset offering no yield, as Warren Buffett often says. If you’re willing to accept these parameters and are looking to add a bit of gold to your portfolio (whether it be physical gold, an ETF or a gold miner), then I think today is a good time to do it.

More reading

• Why I just bought shares of this ASX ETF
• How Elon Musk’s Tesla delivered a body blow to these ASX stocks
• Nufarm’s (ASX:NUF) share price retreats giving back yesterday’s gains
• BHP (ASX:BHP) share price falls despite new option agreement
• Crashing gold price could still rally to record high before year-end: Citi

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited. 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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Elon Musk’s “Battery Day” turned out to a dud that dragged down not only the Tesla Inc (NASDAQ: TSLA) share price, but those of ASX lithium stocks too.

The Galaxy Resources Limited (ASX: GXY) share price crashed 9.7% to $1.16, Pilbara Minerals Ltd (ASX: PLS) share price tumbled 7.3% to $0.32 and Orocobre Limited (ASX: ORE) share price lost 2.1% to $2.54 during lunch time trade.

The Mineral Resources Limited (ASX: MIN) “only” fell 1.7% to $25 thanks to its sizable iron ore operations that’s providing diversification benefits.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) retreated 1.1% at the time of writing.

Tesla leaves ASX lithium miners behind

Lithium miners are coping a bigger beating after Elon Musk outlined plans for the next generation of batteries to power Tesla’s cars.

The new batteries will not only use less lithium, but Tesla will also start its own lithium mine and will improve recycling so it doesn’t need to mine as much.

That wasn’t what investors were expecting Elon to espouse. They thought he would outline plans to lower the cost of batteries, the largest cost component in an electric vehicle (EV). Lower prices will in turn drive increased demand for EVs and lithium.

Lower cost batteries to use less lithium

Well, he did have plans to cut the cost of batteries. Just not in the way the market thought.

“According to CEO Elon Musk, Tesla developed a new technology to extract lithium from hard rock using sodium chloride (table salt), which can lower their current lithium expenditure by 33% and at the same time make it more environmental [sic] friendly,” said Morgan Stanley in a research note.

“They will source spodumene from their own mine in Nevada without intermediaries. This means not only more supply, but also potentially lower costs that could spread across the industry.”

Setback for the lithium price recovery

This is exactly what lithium producers do not want to hear. Worries about an oversupply of the mineral are already depressing prices for the commodity.

What’s more, Elon said there is excess supply of lithium and that there is enough of the material in Nevada to convert all vehicles in the US to electric vehicles.

The outlook for lithium prices is looking pretty sombre even though the worst may be over.

“Prices have to stay below marginal cost of production for longer to adjust to the supply and prevent new capacity from coming online too early,” added Morgan Stanley.

“Lithium prices may have bottomed but we do not see a recovery any time soon.”

Better ASX stock to buy

The marginal cost of production stands at around US$7 to US$8 a tonne. That’s where the price of lithium will be stuck at for a while if the broker’s prediction is on the money.

Investors wanting upside exposure to the EV revolution might be better off betting on nickel miners like the IGO Ltd (ASX: IGO) share price. Elon’s new batteries require more nickel for higher energy density.

More reading

• Why I just bought shares of this ASX ETF
• Gold retreats! Is this a buying opportunity?
• Nufarm’s (ASX:NUF) share price retreats giving back yesterday’s gains
• Elon Musk’s ‘Battery Day’ could see these ASX mining shares soar, and volatility hits the markets
• BHP (ASX:BHP) share price falls despite new option agreement

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. owns shares of and recommends Tesla. 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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The Nufarm Limited (ASX: NUF) share price is down 6.9% in afternoon trading, erasing yesterday’s 5% share price gain.

Following the release of its 2020 full year financial results yesterday, shares were more than 8% higher in intraday trading before closing up 5%.

Year-to-date Nufarm’s share price remains down 33%, as it’s been unable to hold onto any gains made following the 33% COVID-19 induced selloff.

Nufarm is part of the S&P/ASX 200 Index (ASX: XJO). For comparison, the ASX 200 is down 1% today and 12% since 2 January.

What does Nufarm do?

Nufarm Limited was founded in Melbourne in the 1960s. Today Nufarm is a global developer and manufacturer of crop protection solutions and seeds.

Throughout the 1990s and 2000s, Nufarm embarked on a significant growth period, expanding operations across the globe. The company now has manufacturing and marketing operations spanning Australia, New Zealand, the Unites States, Europe, and Asia.

Nufarm’s products are designed to protect commercial crops from a variety of pests, weeds, and diseases to maximise crop yields. The company’s seeds business includes canola, sorghum and sunflower seeds. In addition to product supplies, Nufarm delivers support and services designed to ensure its customers are able to source the right products for their requirements.

Nufarm shares first began trading on the ASX in 1988.

Why is the Nufarm share price falling today?

There are no new announcements from Nufarm today, aside from the finance appendix the company released to the ASX, which appears in line with yesterday’s 2020 full year financial results.

Although Nufarm incurred a statutory net loss after tax of $362 million and suspended dividends until further notice, investors appeared pleased with the company’s balance sheet and outlook.

Net operating cash flow from continued operations increased by $137 million, and the company reported $687 million of cash on hand with $648 million available in undrawn facilities if required.

Looking ahead, Nufarm reported that the company is emerging from a “period of sustained headwinds”. It pointed to solid revenue growth from its continuing businesses in August.

With Nufarm’s share price still well down from the February highs, and a strong agricultural forecast for most of Australia’s core crops, this is a share to keep an eye on.

More reading

• Why I just bought shares of this ASX ETF
• Gold retreats! Is this a buying opportunity?
• How Elon Musk’s Tesla delivered a body blow to these ASX stocks
• BHP (ASX:BHP) share price falls despite new option agreement
• Crashing gold price could still rally to record high before year-end: Citi

Motley Fool contributor Bernd Struben 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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The iCandy Interactive Ltd (ASX: ICI) share price is skyrocketing today following a partnership update with Chinese e-commerce giant Alibaba Group (NYSE: BABA). The iCandy share price is currently trading 22.06% higher at 8.3 cents.

What does iCandy do?

iCandy develops and publishes mobile games and digital entertainment for a global audience. The Australian company’s diverse portfolio of award-winning mobile games is played by more than 350 million people. The company has won multiple awards in various coveted international events.

iCandy shares first began trading on the ASX in February 2016. The company has a market cap of $30 million.

Partnership update

The iCandy share price is storming higher after the company released an operational update on its strategic collaboration with 9Games, a unit of Alibaba Digital Media and Entertainment Business Group. iCandy reported that 9Games had applied to register iCandy’s hit music game Groove Planet for the People’s Republic of China (PRC).

An application is required because all online games need an International Standard Book Number (ISBN) which Chinese regulators have to approve before a product can be listed in Chinese app stores. The ISBN application in China involves several government bureaucracies. It’s a stringent process that now limits the number of game titles allowed in the lucrative Chinese game market.

Groove Planet is the first among 6 games that iCandy has identified for China. Other games will be put into the regulatory application process at a later date. 

So what does it mean?

China recorded more than US$36.5 billion in gaming revenue in 2019, placing it just behind the US as the world’s largest gaming market. According to Marketing to China, the mobile game segment is expected to reach 496.8 million users by 2023. Thus showing the potential the partnership has to offer and why investors are so excited.

The completion of documentation reflects an exciting opportunity for the Australian small-cap, and the iCandy share price has exploded today as a result. However, it must be noted that iCandy still must receive approval by Chinese regulators in order to reach China’s highly coveted app stores.

More reading

• Why the iCandy (ASX: ICI) share price is on a wild ride

Daniel Ewing owns shares of Alibaba Group Holding Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd. 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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The Lendlease Group (ASX: LLC) share price could be one of the biggest bargains on the S&P/ASX 200 Index (ASX: XJO) according to one leading broker.

At present the international property and infrastructure company’s shares are down 2.5% to $11.69 but could be destined to go materially higher from here in the coming months.

Who is bullish on Lendlease?

This morning analysts at Goldman Sachs retained their conviction buy rating and lifted their price target on Lendlease’s shares to $16.74.

This price target implies potential upside of 43% over the next 12 months excluding dividends.

It notes that Lendlease is beginning to look a lot like industrial property giant Goodman Group (ASX: GMG).

Goldman explained: “Applying LLC’s refreshed capital allocation and divisional return targets, we estimate a sustainable rate of EPS growth for the Group of ~7%pa. This is in line with the sustainable growth rate we have previously calculated for GMG.AX.”

“LLC’s business model and earnings mix are also increasingly shifting toward that of GMG (increased capital allocation to Investments; higher co-ownership stakes in managed funds; greater use of third-party development capital). This shift should in our view result in a more consistent, managed rate of EPS growth over time,” it added.

The broker notes that consistency is key and also the reason Goodman has smashed the market over the last few years.

“In our view, it is GMG’s consistency – as opposed to quality – of earnings growth that has driven much of its multiple re-rate over the last few years,” it commented.

Attractive valuation.

Goldman estimates that Lendlease trades on a forward price to earnings ratio of just 13, which is materially lower than Goodman at 31x forward earnings.

But this might not be the case for very long. The broker said: “We don’t expect the gap to close, but see plenty of scope for it to narrow as LLC executes on its strategy.”

Should you invest?

I completely agree with Lendlease and believe it could prove to be a bargain buy at the current level.

Goodman Group is one of my favourite blue chip shares. If Lendlease can replicate its success, then it could be generate very strong returns for investors over the next decade.

More reading

• Macquarie says ASX value shares will outperform growth stocks from here
• 2 outstanding ASX 200 shares for your retirement portfolio
• Bolster your portfolio with these outstanding ASX blue chip shares
• 4 of the best ASX 200 shares to buy in September
• 3 top ASX dividend shares I would buy next week

Motley Fool contributor James Mickleboro 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.

The post Is Lendlease (ASX:LLC) the new Goodman Group (ASX:GMG)? appeared first on Motley Fool Australia.

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The Bubs Australia Ltd (ASX: BUB) share price has been a very disappointing performer over the last 12 months.

Since this time last year, the infant formula and baby food company’s shares have lost 42% of their value.

As a comparison, over the same period the A2 Milk Company Ltd (ASX: A2M) share price has risen a sizeable 37%.

To put this into context, $10,000 invested in Bubs shares a year ago would now be worth $5,800, whereas $10,000 invested in a2 Milk shares would be worth $13,700. That a sizeable difference of $7,900.

Why is the Bubs share price underperforming?

There are a couple of reasons for Bubs underperformance over the last 12 months.

The first is its full year result for FY 2020. For the 12 months ended 30 June 2020, Bubs delivered a 32% increase in gross revenue to $62 million.

While this is strong growth, it was actually a slowdown on its first half revenue growth of 37%. Which is all the more surprising given the insatiable demand that a2 Milk experienced in the second half due to stock piling during the pandemic.

What else is weighing on Bubs’ shares?

Also weighing on the company’s shares has been its penchant for capital raisings.

Over the last two years the company has tapped the market or institutional investors no less than three times. This has caused significant dilution for shareholders.

Though, the company may think twice about another capital raising in the near future. The response from retail investors to its latest one wasn’t overly positive.

So much so, the Bubs share price is now trading at 76 cents. This is 5% lower than its share purchase plan price of 80 cents.

If there’s not a big improvement in its share price between now and the (recently extended) closing date, then the company is very likely to fall short of its capital raising target and be forced to scale back its plans. These plans include buying a manufacturing facility in China in the hope of gaining market access that way. 

Should you buy Bubs shares?

While Bubs may come good in the end, after years of overpromising and underdelivering, I’ve lost faith in management’s ability and have no intention to invest in the near term.

I would suggest investors stick to a2 Milk shares and watch Bubs from the safety of the sidelines.

More reading

• Where to invest $10,000 into ASX shares right now
• 3 great ASX blue chip shares I’d buy
• ASX 200 falls 0.7%, UK and travel shares drop
• Could these microcap ASX shares be the next A2 Milk (ASX:A2M)? 
• Why I would buy CBA (ASX:CBA) and this beaten down ASX share

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk. 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 The Bubs (ASX:BUB) share price is down 42% in 12 months: Is it a buy? appeared first on Motley Fool Australia.

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I think that the end of 2020 could be a good time to buy ASX tech shares.

There is a downwards trend of tech shares in the US at the moment. The NASDAQ-100 (INDEXNASDAQ: NDX) fell by 3.2% overnight and it has dropped 13% since 2 September 2020.

I believe that there are plenty of technology businesses that could be strong performers over the coming years and worth buying:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The upcoming US election could throw up a lot of volatility. Whatever happens next, it seems clear that whoever wins the next presidency will want the US stock market and its businesses to continue to do well over the long-term.

This exchange-traded fund (ETF) gives ASX investors the ability to indirectly invest in the best US businesses like Apple, Amazon, Alphabet (Google), Microsoft, Nvidia, Paypal, Adobe and so on. These are global companies that have extremely strong economic moats and could be almost impossible to dislodge by competitors.

Large ASX shares simply don’t offer the growth potential that the businesses in this ETF do. They have global growth aspirations with many compelling new products which drive earnings higher for many years.

At 31 August 2020, the ETF had excellent performance numbers. After fees (currently 0.48% per annum), the ETF had delivered a net return of 44% over the past year and 22.4% per annum since inception in May 2015.

Since 3 September 2020, the ETF has fallen 10%. The US election period could prove to be a compelling buying opportunity for the ETF if volatility (and declines) occur.

Altium Limited (ASX: ALU)

Altium is a leading electronic PCB software business. Its share price has been volatile since February due to COVID-19.

It is leveraged to the growth of the internet of things with a growing number of devices needing advanced electronics to operate.

The ASX share has an impressive number of large technological clients including: Apple, Disney, Microsoft, Google, Amazon, NASA, Space X, Tesla, John Deere, CSIRO, Honeywell, Broadcom and so on.

FY20 saw a lot of disruption with the company deciding to lower prices and offering longer payment terms so that it would continue to grow its subscriber base. Revenue only increased by 10% in FY20 and normalised earnings per share (EPS) – which excludes a one-off taxation change – went up 5%.

Over the long-term, Altium is aiming for US$500 million of revenue – perhaps by FY26 rather than FY25 because of COVID-19 impacts delaying revenue growth.

The ASX tech share is aiming to increase its profit margins over the longer-term which will hopefully mean growing dividends and good capital growth.

At the current Altium share price it’s trading at 47x FY23’s estimated earnings.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is one of the most exciting ASX tech shares in my opinion.

The donation payment business is aiming to double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) in FY21 to at least US$50 million.

The ASX tech share did really well in FY20, it grew its revenue by around a third. But most importantly, its profit margins grew significantly. Its gross profit margin increased from 60% to 65% and the EBITDAF margin improved from 17% to 22%.

I think that Pushpay could be much more profitable when (or if) it eventually reaches its US$1 billion annual revenue goal from the US church sector.

With so much growth potential, I think its valuation still looks very reasonable. At the current Pushpay share price it’s priced at 38x FY21’s estimated earnings.

Foolish takeaway

I think each of these ASX tech shares have very exciting growth potential. Each of them is linked quite strongly to the US, so the upcoming election could cause a lot of volatility. At the current prices I’d definitely go for Pushpay, though the other two could be good long-term performers.

More reading

• New to investing? I would invest $500 into these exciting ASX shares
• Why I would buy Altium (ASX:ALU) and these ASX growth shares
• 2 top ASX shares I’d buy with $2,000 right now
• Top brokers name 3 ASX shares to buy today
• Forget BrainChip (ASX:BRN) and buy and hold these outstanding ASX shares

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and PUSHPAY FPO NZX. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and PUSHPAY FPO NZX. 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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By most accounts, Tesla Inc‘s (NASDAQ: TSLA) much-hyped ‘Battery Day’ was a bit of a fizzer.

That’s what happens when investors build up overly optimistic expectations.

In this case, expectations had been running high following tweets from Musk that promised ‘insane’ developments in battery technology.

While new tech developments were presented, investors were clearly disappointed at the timeline. Musk announced that a new affordable car from Tesla, in the US$25,000 (AU$35,000) range, could hit the roads, but not for 3 more years.

The Tesla share price dropped 10.3% yesterday (overnight Aussie time). At time of writing, shares are down another 3.3% in afterhours trading.

But it was Musk’s comments on lithium and nickel that I believe should be of most interest to forward looking investors.

We’ll get back to that right after a look at the bubbling volatility and latest broad selloff hitting the United States and Aussie share markets.

“We’re going to have to see what happens”

In early afternoon trading the S&P/ASX 200 Index (ASX: XJO) is down 0.9%, after initially falling 1.6% within the first 15 minutes of the opening bell.

The S&P/ASX All Technology Index (ASX: XTX) — which tracks 50 of Australia’s leading and emerging technology shares — has lost twice as much, currently down 1.8%.

This follows the trend set by US shares yesterday, where the S&P 500 Index (SP: .INX) lost 2.4% while the tech-heavy NASDAQ-100 (NASDAQ: NDX) fell 3.2%.

Today’s slide in the ASX 200 comes after it gained 2.4% yesterday, its best day in 2 months.

These kinds of big daily moves will keep most short-term investors on edge, trying to judge which direction shares will head next. Which is why we Fools recommend taking the long-term view. This means ignoring the short-term volatility and holding onto (and buying more of) the shares you’re convinced offer value at their current prices.

But, if the daily ups and downs are losing you sleep, you may want to tune out from the financial news for while.

As Candice Bangsund, portfolio manager of global asset allocation at Fiera Capital Corp says, share market volatility could be with us well into November (as quoted by Bloomberg):

It’s a volatile trade right now because the market is trying to digest the incoming data, prospects for a vaccine — there’s a lot of moving parts. The re-emergence of volatility and more erratic trading conditions have been consistent with what we believe will be a choppy market environment between now and the US elections in November.

And, love him or hate him, US President, Donald Trump, will do what he can to drive shares higher. But he isn’t going to help smooth the share market waters. At least not if he loses a contestable election.

Asked whether he would willingly hand over the keys to the White House to Democratic presidential candidate, Joe Biden, Trump replied, “We’re going to have to see what happens.”

How’s that for a dash of uncertainty?

How Musk is moving these ASX miners’ share prices

Getting back to ‘Battery Day’, Elon Musk surprised many when he said lithium is a plentiful resource, with enough reserves in the US to meets all its electric vehicle needs. “It’s important to note that there is a massive amount of lithium on earth. Lithium is not like oil; there’s a massive amount of it pretty much everywhere.”

And when Musk talks, investors listen.

The Lithium Australia NL (ASX: LIT) share price is down 3.6% in intraday trading. The Pilbara Minerals Ltd (ASX: PLS) share price is down 5.8%. Galaxy Resources Limited (ASX: GXY) shares are down 9.3%. Most of the other lithium focused miners are seeing heavy selling today as well.

But Musk had a different opinion on nickel, which he feels is in short supply.

His concerns haven’t sparked a rally in most ASX nickel shares yet. But quality nickel shares may be something to consider adding to your portfolio. There are a number out there to choose from.

Like Nickel Mines Ltd (ASX: NIC). The Nickel Mines share price is also sliding today, down 1.1%. But shares are up 7.1% year to date, and up 125% since 17 March after rebounding from the COVID driven market rout.

Looking beyond nickel, John Forwood, portfolio manager at the Lowell Resources Fund, has his focus squarely on copper shares. As quoted by the Australian Financial News, Forwood says:

The way we really like to play the electrification theme – all the charging stations, the cars themselves – require a lot more copper. So that’s probably the safest bet. Rather than trying to pick battery chemistry – is it going to be cobalt, is it going to be titanium, is it going to be tin or zinc or whatever. Every month, there’s a new battery chemistry that gets touted.

As with nickel, there are a number of quality copper miners listed on the ASX.

Sandfire Resources Ltd (ASX: SFR) is one to consider. Sandfire owns the DeGrussa copper mine in Western Australia, which also produces gold as a by-product.

The Sandfire share price is down 0.5% today. And it’s still down 29% in 2020, having yet to fully recover from the big selloff in February and March.

Since its 23 March lows, the Sandfire share price is up 49%.

More reading

• Tesla’s ‘Battery Day’ is a dud; stock tumbles
• Ecograf (ASX:EGR) share price moves after Tesla’s Battery Day presentation
• ASX investors were buying Tesla (NASDAQ:TSLA) and Snowflake (NYSE:SNOW) shares last week
• Should ASX investors follow Buffett and bet on oil shares?
• Tesla Weighs on Nasdaq — Will Investors Believe Musk This Time?

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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.

The post Elon Musk’s ‘Battery Day’ could see these ASX mining shares soar, and volatility hits the markets appeared first on Motley Fool Australia.

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Washington H. Soul Pattinson & Co Ltd (ASX: SOL) has once again proven why it’s the king of the ASX dividend shares.

The industrial conglomerate was a latecomer to earnings season, only reporting its full-year earnings for the 2020 financial year this morning. The markets initially liked what they saw, given that the Soul Patts share price spiked as high as $23.99 earlier this morning.

And fair enough too. See, Soul Patts announced something very special today, something that makes this ASX dividend share pretty unique. It wasn’t the statutory profit after tax of $953 million though (up 284.3% year on year). Or the near 50% increase in cash flows from investments to $252.3 million.

No, it was the dividend announcement.

An ASX dividend aristocrat

On the surface, Soul Patts’ final dividend of 35 cents per share, fully franked and set to be paid on 14 December, doesn’t look that special. After all, it brings the company’s dividends to 60 cents per share for 2020 (a 2.4% rise over 2019), which, on current prices, equates to a yield of 2.57% (or 3.67% grossed-up with franking).

2.57% is nothing to sneeze at of course, especially in our environment of record-low interest rates. But it’s not as numerically appealing as some other ASX dividend shares out there.

But what does make this dividend unique is its history. Soul Patts, with this announcement, becomes the only ASX dividend share in the All Ordinaries Index (ASX: XAO) to boast a history of increasing its dividend every year since the year 2000. That’s 20 years of uninterrupted dividend hikes. Just take a look at this beautiful graph below for a visual illustration.

Now that’s what you want to see in an ASX dividend share — dividends growing from 11 cents per share in 2000 to 60 cents per share in 2020. That’s an average compounded annual growth rate (CAGR) of 9.2% per annum. That 9.2% makes a difference over time too! Anyone who bought Soul Patts’ shares exactly 20 years ago for $3.55 per share would be looking at a yield on-cost of 16.9% per annum today. That’s the power of a good dividend growth share.

Is the Soul Patts share price a buy today?

I think the Soul Patts share price is definitely a buy for any long-term dividend investor today. That kind of dividend royalty makes this company very special in my view. Its varied portfolio of ASX shares and unlisted assets make this company a balanced and diversified investment. Through this company, you are also owning quality shares like TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC) and Brickworks Limited (ASX: BKW). Soul Patts won’t make you rich overnight (like all good investments), but can offer the kind of slow-and-steady growth that can really compound over time. As such, I think it is a must-own for any ASX dividend investor today.

More reading

• ASX 200 down 1.2%: Westpac hit with $1.3bn penalty, Brickworks disappoints, tech shares lower
• Soul Pattinson (ASX:SOL) share price higher after full year results release
• Brickworks (ASX:BKW) share price on watch after posting 38% profit decline
• 3 ASX shares now trading at crazy cheap prices
• 5 things to watch on the ASX 200 on Thursday

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