So, you have some spare cash available to spend on ASX shares right now? Great!

Here are 2 which I think are worth considering: Bubs Australia (ASX: BUB) and Cochlear Limited (ASX: COH). Both are top-quality companies with compelling business models and entrenched market positions in their respective industry niches. I am also confident that both companies have strong growth potential over the next 5–10 years.

Bubs

Bubs is an Australian based producer of goat milk products. It has successfully built a portfolio of premium, high-margin brands. Bubs concentrate on infant formula products, but its product range also spans across organic baby food, cereals and toddler snacks, as well as adult goat dairy products.

This ASX share has already established an entrenched market position in the Australian market. Bubs is Australia’s only vertically integrated producer of goat milk formula. It holds an exclusive milk goat supply agreement with the largest goat herd in Australia.

Bubs have seen recent strong growth due to rising demand for its goat milk products. There has been a growing consumer trend towards alternative baby nutrition options, particularly goat milk which is easier for children to digest. Goat’s milk also has a higher calcium content and is less likely to result in skin and gut reactions. This results in better absorption of the milk’s nutrients, especially for babies.

Recent revenue growth for Bubs has been very strong. In Q3 FY20 to 31 March 2020, Bubs delivered a 67% increase in revenue to $19.7 million compared to the prior corresponding period.

Bubs is now targeting growth in the Asian market and already that strategy is starting to bear fruit. Chinese revenue soared 104% higher in the third quarter.

Cochlear

Another ASX share that I think is worthy of adding to your share portfolio is Cochlear.

Cochlear is a global manufacturer and distributor of cochlear implantable devices for the hearing impaired. Despite operating in a very small niche in the healthcare market, Cochlear has raised its profile over the last 2 decades to become an Australian household name.

Cochlear has been impacted by the coronavirus crisis due to a reduction in elective surgeries. In particular, Cochlear has suffered a significant decline in Cochlear implant surgeries in the US and Western Europe.

However, I believe the long term future for Cochlear remains very positive. As the proportion of the global population over 65 continues to grow, the demand for hearing products and solutions continues to rise. This demand is set to continue for the next few decades.

More reading

• Why I’d buy and hold a2 Milk shares until 2025
• Top ASX Stock Picks for July 2020
• My ASX share for the week
• Do you have $1k to invest? Buy 1 of these ASX shares
• Are you in your 20s? Here’s why I would buy these quality ASX shares

Phil Harpur owns shares of Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and Cochlear Ltd. The Motley Fool Australia has recommended BUBS AUST FPO and Cochlear 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.

The post These are 2 quality ASX shares to buy with $2,000 appeared first on Motley Fool Australia.

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You may be aware of the WAAAX tech consortium, which includes well-known ASX tech companies such as Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO), and Appen Ltd (ASX: APX). However, what you may not be aware of is that there’s an exciting range of other emerging ASX tech shares.

Here are 2 of my top picks in this category: Bigtincan Holdings Ltd (ASX: BTH) and Dicker Data Ltd (ASX: DDR). I am confident that both have exciting long-term growth prospects.

Bigtincan

Bigtincan’s platform enables organisations to access, collaborate on content, and improve customer engagement. It operates in a fast-growing IT software niche commonly referred to as ‘sales enablement’.

The company operates under the software-as-a-service (SaaS) business model. Bigtincan is, therefore, a capital-light, scalable and highly-efficient business through its subscription-type model. It also benefits from high customer retention rates.

For 1H FY 2020, Bigtincan posted annualised recurring revenue (ARR) of $32.4 million. This was a very strong 55% increase on the prior corresponding period. This ASX tech share continues to win new deals and expanded its customer base.

Bigtincan was only listed on the ASX in 2017 and is yet to become profitable. So it, therefore, could potentially be viewed as a risky type of share investment, compared to more established technology companies listed on the ASX, such as Carsales.Com Ltd (ASX: CAR) and REA Group Limited (ASX: REA). It will need to keep its operating costs under control and maintain its high customer retention rate moving forward.

However, I am confident that the long-term future shines bright for Bigtincan. It currently appears to be on track to reach the breakeven point as it gains further scale. This hopefully will then lead to growing profitability in the years ahead.

Dicker Data

Another ASX tech share that I would consider adding to your ASX share portfolio is Dicker Data. This IT company is a wholesale distributor of computer hardware, software and cloud-based solutions. In addition, it’s the largest Australian-owned hardware distributor in the Australia and New Zealand markets.

Dicker Data has transformed and evolved its business over the past 40 years. It started out as just a family-run business and now is a corporation with a market capitalisation of around $1.2 billion today.

Dicker Data recorded its highest-ever revenue month to date in March. Its FY 2020 first-quarter net profit before tax (NPAT) increased by 36.3% to $18.4 million. The trend of working from home during the coronavirus pandemic has also benefitted the company. 

I believe that Dicker Data is well placed to capitalise on the growing demand for IT services connected with cloud computing over the next decade.

Dicker Data also currently pays a forward fully franked dividend yield of around 4.36% at the time of writing.

More reading

• Millionaire maker increases share price 28 times in FY20
• Are Newcrest shares set to take off in FY21?
• ASX 200 stocks to watch for FY2021
• These were the best performing ASX 200 shares in FY 2020
• Afterpay and these shares were the best performers on the ASX 200 in June

Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO and Xero. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, carsales.com Limited, and REA Group 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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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) looks set to start the new financial year on a positive note. At the time of writing the benchmark index is up 0.9% to 5,949.1 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

The Avita Medical Ltd (ASX: AVH) share price is down 2% to $8.82. This follows its debut on the Nasdaq index overnight after successfully redomiciling. Avita is a regenerative medicine company with a technology platform positioned to address unmet medical needs in burns, chronic wounds, and aesthetics indications.

The Brickworks Limited (ASX: BKW) share price is down 2% to $15.52. This decline may be the result of a spot of profit taking after the company’s shares surged notably higher on Tuesday. Investors were buying Brickworks’ shares after its joint venture with Goodman Group (ASX: GMG) signed a 20-year agreement with ecommerce giant Amazon.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is down 3.5% to $31.73. Investors may be taking a bit of profit off the table after some very strong gains over the last 12 months. In fact, the medical device company was among the best performers on the index during the 2019-20 financial year with a gain of more than 100%.

The WiseTech Global Ltd (ASX: WTC) share price has continued its slide and is down a further 4% to $18.55. Investors have been selling the logistics solutions company’s shares over the last couple of days after it revealed heavy insider selling. According to the notice, over the past few trading days its founder and CEO, Richard White, has sold almost $46 million worth of shares. The chief executive has not provided an explanation for the sales. Though, it is worth noting that Mr White does still own approximately 151 million WiseTech shares.

More reading

• These were the best performing ASX 200 shares in FY 2020
• Afterpay and these shares were the best performers on the ASX 200 in June
• ASX stock of the day: Avita Therapeutics share price climbs 8.4% as company redomiciles
• Leading brokers name 3 ASX 200 shares to sell today
• Why James Hardie and its peers are surging higher today

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 Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Avita Medical 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.

The post Why Avita, Brickworks, Fisher & Paykel Healthcare, & WiseTech Global are tumbling lower appeared first on Motley Fool Australia.

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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is on course to start the financial year in a very positive fashion. The benchmark index is currently up 0.9% to 5,949.5 points.

Here’s what has been happening on the market today:

Big four banks push higher.

The big four banks have started the financial year strongly and are all on course to record gains. One of the best performers in the group has been the Westpac Banking Corp (ASX: WBC) share price. Its shares are up 1.2% at the time of writing. This appears to have been driven by a positive broker note out of Westpac. Its analysts have upgraded the banking giant’s shares to a buy rating with a $20.13 price target.

Suncorp announces new operating model.

The Suncorp Group Ltd (ASX: SUN) share price has dropped lower after announcing a new operating model and leadership structure. It believes these changes will drive further improvements in its core insurance and banking businesses. It also expects the initiatives to accelerate its digital and data driven transformation. It appears as though investors have given the changes a lukewarm response.

NEXTDC announces new contract wins.

The NEXTDC Ltd (ASX: NXT) share price is surging higher today after announcing major new contract wins for its New South Wales data centres. NEXTDC’s contracted commitments at its New South Wales facilities have now increased by approximately 4MW, to more than 36MW. This has the potential to increase further in the future, with expansion options potentially lifting its contracted commitments to 60MW. In light of this, NEXTDC has committed to completing the Sydney-2 centre fit-out to a total planned capacity of 30MW.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Wednesday has been the NEXTDC share price with a gain of 8.5%. This follows its announcement of new contract wins. The worst performer on the index has been the Ampol Limited (ASX: ALD) share price with a decline of 3%. This is despite there being no news out of the fuel retailer previously known as Caltex.

More reading

• Why Polynovo and JB Hi-Fi shares outperformed in FY20
• Why Alterity Therapeutics, Flight Centre, NEXTDC, & Telix are surging higher
• Are Newcrest shares set to take off in FY21?
• Suncorp share price edges higher after announcing its new operating model
• Why I’d buy and hold a2 Milk shares until 2025

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited and Westpac Banking. 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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It’s fair to say that investors in Polynovo Ltd (ASX: PNV) and JB Hi-Fi Limited (ASX: JBH) shares enjoyed a bumper last 12 months.

For the financial year ending 30 June 2020 (FY20), both Polynovo and JB Hi-Fi shares rocketed around 63.9% higher.

That’s good news for shareholders given the benchmark S&P/ASX 200 Index (INDEXASX: XJO) slumped 11.4% lower in FY20.

So, what have been the major growth factors for the Aussie biotech company and retailer, and is there more in store for FY21?

Why Polynovo and JB Hi-Fi shares rocketed higher in FY20

Let’s start with Polynovo before looking at why JB Hi-Fi shares surged higher. The Polynovo share price had another bumper 12 months and is up 2,479% in the last 5 years.

One factor that’s fuelling the Aussie biotech company higher is strong sales growth from its NovoSorb Biodegradable Temporising Matrix (BTM) product. 

PolyNovo posted record US quarterly sales of $4.49 million for the March quarter despite the coronavirus pandemic outbreak. For context, that figure was 166% higher than Polynovo’s March 2019 quarter sales of $1.69 million.

The strong start to the year came after Polynovo posted $2 million worth of monthly NovoSorb BTM sales for the first time in December 2019, up 134% compared to December 2018 levels.

However, JB Hi-Fi shares also enjoyed a successful year on the markets. Unlike Polynovo, much of that growth has actually come in the first half of 2020.

Much of the JB Hi-Fi share gains this year have actually been due to the pandemic. Many Aussies were forced to work from home from March onwards which saw the retailer’s electronics sales surge higher.

People flocked to the retailer to secure laptops, monitors and other accessories in preparation for the shift in working arrangements. This boosted JB Hi-Fi Australia sales by 11.6% in 3Q FY20 while The Good Guys sales climbed by 13.9% year-on-year.

Foolish takeaway

Clearly, both of these ASX 200 shares have performed well in the last 12 months on the back of strong sales. While the demand drivers are quite different, a strong growth trajectory could leave both Polynovo and JB Hi-Fi shares well-positioned for the next 6-12 months.

More reading

• Are Newcrest shares set to take off in FY21?
• Why I’d buy and hold a2 Milk shares until 2025
• 3 ASX ETFs to hedge your portfolio
• ASX 200 stocks to watch for FY2021
• These were the best performing ASX 200 shares in FY 2020

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. 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 S&P/ASX 200 Index (ASX: XJO) is on course to start the new financial year with a solid gain. At the time of writing the benchmark index is up 0.65% to 5,936.2 points.

Four shares that have climbed more than most today are listed below. Here’s why they are surging higher:

The Alterity Therapeutics Ltd (ASX: ATH) share price has rocketed an incredible 1,841% to 33 cents. Investors have been scrambling to buy the biotech company’s shares after it revealed that its meeting with the U.S. FDA has provided it with a development pathway for its ATH434 candidate. ATH434 is the company’s lead compound for the treatment of Multiple System Atrophy (MSA), a Parkinsonian disorder.

The Flight Centre Travel Group Ltd (ASX: FLT) share price has jumped 4.5% to $11.61. This morning the travel agent announced that it has secured access to a debt facility of up to 65 million pounds. These funds will be draw down if and when it is necessary to offset the coronavirus’ impact on its United Kingdom-based operations. The funding has been made available to the company via the Bank of England’s COVID Corporate Financing Facility.

The NEXTDC Ltd (ASX: NXT) share price has surged 6.5% higher to $10.53 after announcing major new contract wins in New South Wales. According to the release, the company’s contracted commitments at its New South Wales data centre facilities have now increased by approximately 4MW, to more than 36MW. And including expansion options, its data centres in the state are now approaching a sizeable 60MW.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price has jumped 16.5% to $1.49. The catalyst for this gain was an announcement which reveals that the U.S. FDA has granted Breakthrough Therapy designation for Telix’s renal cancer imaging product TLX250-CDx. The FDA will work closely with Telix to provide guidance on the development of TLX250-CDx for the diagnosis of indeterminate renal masses that have been identified on CT or MRI imaging.

More reading

• These were the worst performing ASX 200 shares in FY 2020
• NEXTDC share price jumps 8% on new contract wins
• Flight Centre share price on watch after new funding deal
• Webjet and these shares were the worst performers on the ASX 200 in June
• Top ASX Stock Picks for July 2020

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited and TELIXPHARM DEF SET. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

The post Why Alterity Therapeutics, Flight Centre, NEXTDC, & Telix are surging higher appeared first on Motley Fool Australia.

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Zoono Group Ltd (ASX: ZNO) has seen more explosive share price growth than any company on the S&P/ASX All Ordinaries (INDEXASX: XGD) in FY20. In one financial year, it has grown by more than 2,788%! Dreams are made of this stuff. It’s even greater than Afterpay Ltd’s (ASX: APT) success story.

Zoono produces a new formulation for anti-bacterial hand sanitiser and disinfectant. The product is packaged in individual, bulk and industrial sizes and can be used for both hands and surfaces.

 It is a product tailor-made for our current times. Accordingly, the company’s share price tracked the progress of the pandemic. 

The Zoono share price year in review

January

Towards the end of the 2019 calendar year, the company saw its share price increase substantially due to a series of announcements.

First, a global distribution agreement on a product built for the poultry farming sector. In addition, the product was used successfully to disinfect against the African Swine Flu. This led to a deal with a group of Chinese industry leaders for exclusive distribution in the animal health and agribusiness sectors.

By the end of 1H FY20, the share price had risen a mere 600%! Then came the coronavirus. On 30 January the company mentioned the coronavirus for the first time revealing its products had been successfully tested against similar viruses in the past. They also disclosed that they were starting to see an unprecedented level of sales, primarily from China and Hong Kong.

February

Zoono enters into an exclusive distribution agreement with a Beijing company for the childcare and hotel sectors in China. A 5-year deal guaranteeing escalated sales volumes to NZ$3 million in its third year of the agreement. Then increasing by 10% in every year following. All payments to be prior to shipping. 

This was followed by 2 additional distribution deals. The first with Singapore under similar conditions to the Beijing deal. Then a deal with Eagle Health Holdings Limited (ASX: EHH) for distributing Zoono’s products in China.

On 28 February, Zoono announced its product tested positively against COVID-19. By this stage, its share price had risen by 2,011% since the start of the financial year.

Zoono’s current situation

As well as all of the distribution deals previously signed the company has signed additional deals in an exclusive arrangement for the Middle East and Africa. Moreover, they signed an additional deal with Johns Lyng Group Ltd (ASX: JLG), for the business to business (B2B) market in Australia.

By 5 May the company announced further distribution deals. In its company update, it announced further deals in the UK and Europe. It also disclosed revenue in April alone was in excess of NZ$11 million. This was only for B2B sales. 

In the entire first half of FY20, the company had a total revenue stream of a mere NZ$1,714,980. This by itself was an increase of 144% on the previous corresponding period.

Foolish takeaway

This company was a golden ticket for anybody who invested in it on 1 July of last year. After a 2,788% increase, the share price appears to be still going strong. The product was ideally suited to the pandemic, yet that alone was not enough.

Zoono was agile enough and wise enough to rapidly pull together distribution deals covering most of the globe. In addition, it ramped up production to levels the management could not have dreamt of in December 2019. No matter what happens from this point forward, large-scale sanitization of workplaces is likely to continue.  

The company’s FY20 report release in August will be very interesting, in my eyes. What an outstanding achievement.

More reading

• Are Newcrest shares set to take off in FY21?
• ASX 200 stocks to watch for FY2021
• These were the best performing ASX 200 shares in FY 2020
• Afterpay and these shares were the best performers on the ASX 200 in June
• Afterpay shares have exploded 142% in FY20

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Newcrest Mining Limited (ASX: NCM) share price hasn’t been one of the ASX’s star performers over the financial year that’s just been. Yes, today is 1 July, which means it’s the first day of the 2021 financial year.

Whilst some ASX shares have performed enviably throughout FY20, others have been less rewarding. On one level, this is understandable. The coronavirus pandemic has hobbled the S&P/ASX 200 Index (ASX: XJO) highs we saw back in February when the index broke through 7,000 points for the first time. Despite a considerable recovery since the bear market, the ASX 200 was still down around 11% for FY2020.

But on another level, we should always be striving for the best performance possible for our ASX portfolios. So today, let’s consider Newcrest Mining’s potential for FY2021.

How did Newcrest shares perform in FY20?

Newcrest shares were asking $31.26 on 1 July last year. Yesterday, they closed at $31.53, which tells us that Newcrest has returned 0.86% over the past 12 months. That’s still pretty decent when compared with the returns of the broader market, but not as good as some other ASX shares like Afterpay Ltd (ASX: APT) or Fortescue Metals Group Limited (ASX: FMG).

This is surprising to me, considering the price of gold (which is what Newcrest mines) has had a stellar run over the past year. Gold started FY2020 at around US$1,395 per ounce and rounded out the financial year more than 27% higher at US$1,776.

Newcrest’s ‘performance drag’ can probably be partly explained by numerous production issues it has endured over the past 12 months, which includes a scale back of production at its flagship Cadia mine.

But it also tells me that there might be some upside for Newcrest going into FY2021.

Will the gold miner take off in FY21?

I’m still very bullish on Newcrest for FY2021 and beyond. This ASX gold miner is the largest of its kind in Australia. As of its 2019 annual report, the company estimated it has gold reserves of approximately 54 million ounces across its portfolio of mines. At the current gold price of US$1,776 per ounce, this gives Newcrest’s reserves a value of US$95.5 billion (or $138 billion in Australian dollars). Newcrest’s current market capitalisation is around $26.3 billion. Bargain? It doesn’t look like a bad deal to me.

I also think there is a strong case for the gold price over the next year or two. Due to the ongoing coronavirus crisis, together with the ultra-loose monetary policy central banks have been implementing around the world, I think demand for ‘safe haven’, inflation-resistant assets like gold will hold up well. Thus, I definitely think one could argue that Newcrest shares are undervalued at their current price. As such, I wouldn’t be surprised if the Aussie gold miner’s shares made up for their flat performance in FY20 over the coming financial year.

More reading

• Why Polynovo and JB Hi-Fi shares outperformed in FY20
• Millionaire maker increases share price 28 times in FY20
• Why I’d buy and hold a2 Milk shares until 2025
• 3 ASX ETFs to hedge your portfolio
• ASX 200 stocks to watch for FY2021

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Are you thinking about starting to invest but on the fence about getting your money into the market during these turbulent times? 

It’s natural to be worried about investing in a recession, especially as the stock market has been somewhat volatile lately (to put it mildly). But while you may be uncertain about jumping in with both feet, there are a few great reasons it makes sense to get your money into the market ASAP. 

That doesn’t mean investing is right for everyone, though. So here are three big reasons to invest now along with three reasons to wait. 

3 reasons to invest now

Why to get your money into the market, ASAP. 

1. There’s never a wrong time for long-term investors to get started: When you’re investing for the long term, it doesn’t really matter when you buy in since you should (hopefully) make a profit over time. That’s true even if you buy during a bubble, because while you may suffer short-term losses during a market correction, your investment should come back strong during the recovery that will inevitably follow. 
2. Recessions present buying opportunities: Periods of economic downturn often provide the opportunity to buy index funds or shares of high-quality companies when they’re on sale. You could potentially set yourself up for higher returns down the line by buying at a discount. 
3. Trying to time the market could cost you thousands: Over a long investing career, missing just a few key days could cost you hundreds of thousands of dollars. It’s impossible to predict when those important days will happen; few people see rallies coming before they occur. Instead of trying to wait to invest until stocks hit rock-bottom prices, it’s better to get your money in now so you won’t miss out on any market surges that could net you major profits. 

3 reasons to wait 

Although there’s no wrong time for long-term investors to get started, there could be a wrong time for you to personally start investing if your finances aren’t in good shape. There are three key reasons now may be a bad time to put your money into the market. 

1. You don’t have an emergency fund: At all times, but especially in these turbulent times, you need to have an emergency fund because you never know when an illness, income cut, or other financial emergency could occur. You don’t want to invest only to have to sell soon after (potentially at a loss) because you need the money for an emergency. So make sure you have liquid funds first, to cover at least three to six months of living expenses, before putting your money into the market. 
2. You have a lot of high-interest debt: Although stocks have, over time, produced a better average return than virtually any other investment presenting a reasonable risk, it’s very unlikely they’ll produce a return on investment that’s higher than the one you’d get from paying off high-interest debt. If you owe money on credit cards, payday loans, or other debt that’s costing you a fortune in interest, get that taken care of before investing.
3. You haven’t devised an investment strategy: Long-term investors with a sound strategy almost always do well over time. But first, you need that sound investment strategy. If you’re willing to spend time learning about and monitoring your stocks, you may be able to beat the market by purchasing shares of individual companies. But unless you’re really interested in doing that, your best bet may be to build a diversified portfolio of index funds. 

Should you invest or check other items off your to-do list first?

The bottom line is, if you have the financial basics covered, there’s no bad time to invest in the market. Whether you buy during a correction or the peak of a bubble, you should still do well if you pick solid investments and leave your money alone over time. History has proved it. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why Polynovo and JB Hi-Fi shares outperformed in FY20
• Why Alterity Therapeutics, Flight Centre, NEXTDC, & Telix are surging higher
• Millionaire maker increases share price 28 times in FY20
• Are Newcrest shares set to take off in FY21?
• Suncorp share price edges higher after announcing its new operating model

Christy Bieber 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 3 reasons to invest now, and 3 reasons to wait appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Suncorp Group Ltd (ASX: SUN) share price is edging higher on Wednesday after announcing a new operating model and leadership structure.

At the time of writing the insurance and banking giant’s shares are up 0.25% to $9.25.

What did Suncorp announce?

Suncorp has announced a new operating model and leadership structure which it believes will drive further improvements in its core insurance and banking businesses. It also expects the initiatives to accelerate its digital and data driven transformation. The latter of which has increased in importance following the pandemic.

Suncorp’s CEO Steve Johnston explained: “COVID-19 has resulted in changes such as the faster adoption of digital channels by customers and new, more innovative and agile internal ways of working. It has changed our perspective on what is possible.”

“We now need to seize this opportunity to speed up the execution of our priorities so we can continue to deliver for our people and customers, while growing returns and creating better outcomes for our shareholders,” he added.

What changes are being made?

According to the release, the key operating model changes are as follows:

• Accountability for the performance of Insurance (Australia) to be assumed by two executives. One will be focused on underwriting, distribution, brands, marketing, product design, and innovation. The other will be responsible for all aspects of claims management and operations.
• Combining a number of Insurance (Australia) and company functions to create a more streamlined and efficient organisation.
• Greater end-to-end operational accountability within Banking & Wealth and Suncorp New Zealand to drive improved performance.
• Aligning Group Strategy and Technology to fast-track digital and automation capabilities and opportunities.

FY 2021 Reinsurance Program.

Suncorp also advised that it has finalised its catastrophe reinsurance program for FY 2021.

The structure of the program will remain largely consistent with prior years. However, the maximum loss limit is lower than FY 2020 as a result of reduced Commercial Insurance exposures in Australia and increased building coverage through the Earthquake Commission in New Zealand.

Suncorp’s maximum event retention remains at $250 million. The main catastrophe program includes one prepaid reinstatement which covers losses up to $6.5 billion for a second event and two further prepaid statements at the lower layer. These will cover losses up to $500 million for the third and fourth events.

In addition to this, Suncorp has purchased dropdown aggregate protection and Aggregate Excess of Loss (AXL) cover.

Finally, management also provided an update on its COVID-19 impact. The impact on its profit and loss is expected to be broadly neutral in FY 2020. Though, this is excluding investment market movements and Bank impairment losses.

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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.

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