Jun.28 — James Zhao, co-founder and managing partner at LYFE Capital, discusses the healthcare sector, Hong Kong’s IPO market and Kangji Medical’s Hong Kong IPO. He speaks on “Bloomberg Markets: China Open.”
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Healthcare Is Always a Resilient Sector: LYFE Capital’s Zhao
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3 star ASX 200 shares for all types of investors
The S&P/ASX 200 Index (ASX: XJO) is home to 200 of the biggest and brightest companies that Australia has to offer.
But with so many options to choose from, it can be hard to decide which ones to buy. In order to narrow things down, I have picked out three top ASX 200 shares that I believe might appeal to certain investors.
They are as follows:
Appen Ltd (ASX: APX)
If you’re a growth investor, then you might want to consider an investment in Appen. It is a tech company that prepares the data to go into artificial intelligence (AI) and machine learning models. This is a vital part of the process in creating successful models and is likely to mean that its services remain in demand for many years to come. Especially given how important these models are becoming for businesses and the high level of investment being made in them. Overall, I expect this strong demand to underpin above-average earnings growth for many years to come.
Coles Group Ltd (ASX: COL)
Income investors that are on the lookout for dividend shares might want to consider this supermarket operator. I believe Coles is well-placed to deliver solid earnings growth over the next decade thanks to its refreshed strategy, defensive business, and expansion opportunities. And with the company planning to pay out upwards of 90% of its earnings to shareholders, I feel this bodes well for its dividends in the future. At present I estimate that its shares offer a fully franked 3.9% FY 2021 dividend.
Telstra Corporation Ltd (ASX: TLS)
Finally, I think that Telstra would be a good option for value investors. At present the telco giant’s shares are changing hands for an estimated 19x full year earnings. I think this is great value given its increasingly positive outlook. After several very tough years, I believe a return to growth is on the cards in the coming years. This is thanks to rational competition, the easing of the NBN headwind, its material cost reductions, and the arrival of 5G internet. In addition to this, I’m confident its dividend cuts are over and that 16 cents per share will be sustainable from its cash flows for the foreseeable future.
3 “Double Down” Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- Broker survey points to more upside for JB Hi-Fi and these ASX stocks
- ASX 200 drops 1.15%: Fisher & Paykel Healthcare impresses, big four banks tumble
- Fortescue Metals and 2 other ASX 200 shares to buy in a recession
- Why you probably won’t buy stocks in the next market crash either
- Comments from CUA brings hope to COVID-19 stricken ASX banking stocks
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Appen Ltd and COLESGROUP DEF SET. 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 U.S.-China Feud Gets Nasty
(Bloomberg) — The U.S. and China are moving beyond bellicose trade threats to exchanging regulatory punches that threaten a wide range of industries including technology, energy and air travel.The two countries have blacklisted each other’s companies, barred flights and expelled journalists. The unfolding skirmish is starting to make companies nervous the trading landscape could shift out from under them.“There are many industries where U.S. companies have made long-term bets on China’s future because the market is so promising and so big,” said Myron Brilliant, the U.S. Chamber of Commerce’s head of international affairs. Now, they’re “recognizing the risk.”China will look to avoid measures that could backfire, said Shi Yinhong, an adviser to the nation’s cabinet and a professor of international relations at Renmin University in Beijing. Any sanctions on U.S. companies would be a “last resort” because China “is in desperate need of foreign investment from rich countries for both economic and political reasons.”Pressure is only expected to intensify ahead of the U.S. elections in November, as President Donald Trump and presumptive Democratic nominee Joe Biden joust over who will take a tougher line on China.Trump has blamed China for covering up the coronavirus pandemic he has mocked as “Kung Flu,” accused Beijing of “illicit espionage to steal our industrial secrets” and threatened the U.S. could pursue a “complete decoupling” from the country. Biden, likewise, has described President Xi Jinping as a thug, labeled mass detention of Uighur Muslims as unconscionable and accused China of predatory trade practices.And on Capitol Hill, Republicans and Democrats have found rare unity in their opposition to China, with lawmakers eager to take action against Beijing for its handling of Covid-19, forced technology transfers, human rights abuses and its tightening grip on Hong Kong.“China is going to be a punching bag in the campaign,” said Capital Alpha Partners’ Byron Callan. “But China is a punching bag that can punch back.”China has repeatedly rejected U.S. accusations over its handling of the pandemic, Uighurs, Hong Kong and trade, and it has fired back at the Trump administration for undermining global cooperation and seeking to start a “new cold war.” Foreign Minister Wang Yi last month said China had no interest in replacing the U.S. as a hegemonic power, while adding that the U.S. should give up its “wishful thinking” of changing the country.Both sides have already taken a series of regulatory moves aimed at protecting market share.The U.S. is citing security concerns in blocking China Mobile Ltd., the world’s largest mobile operator, from entering the U.S. market. It’s culling Chinese-made drones from government fleets and discouraging the deployment of Chinese transformers on the power grid. The Trump administration has also tried to constrain the global reach of China’s Huawei Technologies Co., the world’s largest telecommunications equipment manufacturer.Meanwhile, China prevented U.S. airline flights into the country for more than two months and, after the U.S. imposed visa restrictions on Chinese journalists, it expelled American journalists. It has stepped up its scrutiny of U.S. companies, with China’s state news agency casting one probe as a warning to the White House. China also has long made it difficult for U.S. telecommunications companies to enter its market, requiring overseas operators to co-invest with local firms and requiring authorization by the central government.One of the most combustible flash points has been the Trump administration’s campaign to contain Huawei by seeking to limit the company’s business in the U.S. and push allies to shun its gear in their networks.The U.S. Federal Communications Commission moved to block devices made by Huawei and ZTE Corp. from being used in U.S. networks. And the Commerce Department has placed Huawei on blacklists aimed at preventing the Chinese company from using U.S. technology for the chips that power its network gear, including tech from suppliers Qualcomm Inc. and Broadcom Inc.After suppliers found work-arounds, Commerce in May tightened rules to bar any chipmaker using American equipment from selling to Huawei without U.S. approval. The step could constrain virtually the entire contract chipmaking industry, which uses equipment from U.S. vendors such as Applied Materials Inc., Lam Research Corp. and KLA Corp. in wafer fabrication plants.The curbs also threaten to cripple Huawei. Although the company can buy off-the-shelf or commodity mobile chips from a third party such as Samsung Electronics Co. or MediaTek Inc., going that route would force it to make costly compromises on performance in basic products.Huawei was on a list the Pentagon unveiled last week of companies it says are owned or controlled by China’s military, opening them to increased scrutiny. The Ministry of Foreign Affairs in Beijing accused the Trump administration of “violating the very market economy principle the U.S. champions.” “We are strongly opposed to this,” the foreign ministry said Sunday in response to question last week about the Pentagon’s designation. “China urges the U.S. to stop suppressing Chinese companies without reason and provide a fair, just and non-discriminatory environment for Chinese companies to operate normally in the U.S.”After the new restrictions, the editor of the Communist Party’s Global Times newspaper tweeted that China would retaliate using an “unreliable entities list” that it first threatened at the height of the trade war last year. Although China didn’t identify companies on the list, the Global Times has cited a source close to the Chinese government as saying U.S. bellwethers such as Apple Inc. and Qualcomm could be targeted.The fallout could extend to companies heavily reliant on Chinese supply chains, as well consumer-facing brands eager to expand sales in Asia. Boeing Co., which recorded $5.7 billion of revenue from China in 2019, and Tesla Inc., the biggest U.S. carmaker operating independently in China, are among companies most exposed if relations sour further.“We’re playing in a much wider field now,” said Jim Lucier, managing director of research firm Capital Alpha Partners. “We’re not simply talking about ‘you tariff me’ and ‘I tariff you.’ The playing field is virtually unlimited.”Planes and AutomobilesU.S. automakers have also been singed. In June, China fined Ford Motor Co.’s main joint venture in the country for antitrust violations, saying Changan Ford Automobile Co. had restricted retailers’ sale prices since 2013.Aviation has been another source of tension, as both countries squabble over access to their skies. China’s decision to limit U.S. airlines operations to those services scheduled as of March 12 hurt carriers such as United Airlines Holdings Inc., Delta Air Lines Inc, and American Airlines Group Inc. that had suspended passenger flights to and from China because of the coronavirus pandemic.The U.S. responded earlier this month by initially threatening to ban all flights from China, then relenting to allow two flights weekly once Chinese officials eased their restrictions. Now, in what appears to be a staged de-escalation, China gave U.S. passenger carriers permission to operate four weekly flights to the country and earlier this month, the Trump administration matched the move by also authorizing four flights from Chinese airlines.It’s happening outside of aviation too. Consider the U.S. government’s decision to seize a half-ton, Chinese-made electrical transformer when it arrived at an American port last year and divert the gear to a national lab instead of the Colorado substation where it was supposed to be deployed. That move — and a May executive order from Trump authorizing the blockade of electric grid gear supplied by “foreign adversaries” of the U.S. in the name of national security — have already sent shock waves through the power sector.The effect has been to dissuade American utilities from buying Chinese equipment to replace aging components in the nation’s electrical grid, said Jim Cai, the U.S. representative for Jiangsu Huapeng Transformer Co., the company whose delivery was seized. Although Cai said the firm has supplied parts to private utilities and government-run grid operators in the U.S. for nearly 15 years without security complaints, at least one American utility has since canceled a transformer award to the company, Cai said.Trump’s directive is tied to a broader effort to bring more manufacturing to the U.S. from China. “This is a part of the administration’s efforts to impair China’s supply chains into the United States,” said former White House adviser Mike McKenna.Escalating tensions could jeopardize the U.S. economic recovery, as well as China’s trade commitment to purchase $200 billion in American goods and services. Trump declared on Twitter last week that the pact “is fully intact,” adding: “Hopefully they will continue to live up to the terms of the Agreement!”It may also affect the November presidential election. Former U.S. national security adviser John Bolton alleges in a new book that Trump asked Xi to help him win re-election by buying more farm products — a claim the White House has dismissed as untrue.“I don’t expect one single blow to send this relationship in a tailspin,” the chamber’s Brilliant said. “Each side will calibrate their reactions in a way that will not tip the scales too far.”Take the recent spat over media access. After the U.S. designated five Chinese media companies as “foreign missions,” China revoked press credentials for three Wall Street Journal staff members over an article with a headline describing China as the “real sick man of Asia.”Then the Trump administration ordered Chinese state-owned news outlets to slash staff working in the U.S. Beijing responded in March by effectively expelling more than a dozen U.S. journalists working in China.Both the U.S. and China have ample opportunities to ratchet up regulatory pressure. A bill passed by the Senate last month could prompt the delisting of Chinese companies from U.S. stock exchanges if American officials aren’t allowed to review their financial audits.And last week, as the U.S. State Department imposed visa bans on Chinese Communist Party officials accused of infringing the freedom of Hong Kong citizens, a senior official made clear the move was just an opening salvo in a campaign to force Beijing to back off new restrictions on the city.China, similarly, can slow licensing decisions and regulatory approvals, launch investigations under its anti-monopoly law and squeeze financial firms that want to do business in the country. For instance, the country could rescind pledges to let U.S. financial firms take controlling stakes in Chinese investment banking joint ventures, according to a Cowen analyst.“China will not make any significant compromise and will retaliate whenever and wherever possible,” said Shi, the Renmin University professor.Companies are still lured to China and its massive local market — and tensions with the U.S. don’t overcome the Asian superpower’s appeal. Just one-fifth of companies surveyed by the American Chamber of Commerce in China late last year said they had moved or were considering moving some operations outside of the country, part of a three-year downward trend.But the coronavirus pandemic has subsequently pushed more companies to reckon with the risks of relying too heavily on any single country for their supply chains, amid existing concerns about forced technology transfers, cost and rising tensions that could damp investment in China.China is no longer the lowest-cost manufacturer, and companies are more reluctant to invest there, said James Lewis, director of the Technology Policy Program at the Center for Strategic and International Studies in Washington.“Everyone would like to be in the China market — everyone wants it to be like 2010 — but things are changing.”(Updates with Chinese Foreign Ministry comment in 17th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Microsoft is giving up on retail
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.
Shortly after giving up on live-streaming, Microsoft (NASDAQ: MSFT) is doing likewise with retail. The company announced last week that it would be permanently closing all physical retail stores in a major strategic shift, thus ending a decade-long experiment in replicating Apple‘s (NASDAQ: AAPL) success in retail. The first Microsoft Store opened in October 2009, nearly 11 years ago.
Here’s why the software giant is pulling the plug on its stores.
Four locations will be repurposed
Like many retailers, Microsoft stores have been crushed by the COVID-19 pandemic. Locations have been closed since March as a result of various virus-related lockdown orders, and none have reopened even as some local restrictions have eased. Employees have still been able to assist customers, including average consumers and enterprise customers, remotely with virtual training and support calls.
Only four locations in London; New York City; Redmond, Washington; and Sydney will remain open, but they will be repurposed as Microsoft Experience Centers instead of traditional retail stores. Microsoft expects to eat a pre-tax charge of approximately $450 million, or $0.05 per share, in the second quarter.
Microsoft told The Verge that it would not be laying off any employees as a result of the decision. Instead, those workers will transition to other corporate offices where they will remotely work on sales, training, and support. Accordingly, the aforementioned pre-tax charge should relate primarily to things like lease terminations and other associated costs instead of severance or termination benefits.
Meanwhile, the enterprise software tech behemoth will invest heavily in its digital storefronts — which Microsoft says collectively have 1.2 billion monthly visitors — to facilitate virtual interactions.
“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,” Microsoft exec David Porter said in a statement. “We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”
Chasing Apple
It was always clear that Microsoft was hoping to emulate Apple. The stores were designed to look almost identical to Apple stores, including the use of minimal aesthetics and overall layout. Microsoft often positioned them in close proximity to Apple stores. But Microsoft was never able to achieve the same level of success. Foot traffic was always uninspiring, and the company has never provided much financial detail around the segment.
Apple, on the other hand, often tops retail rankings for sales per square foot. Apple is trying to reopen its stores as local conditions permit, but the Mac maker has had to reclose stores in certain states where coronavirus cases are spiking.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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!
*Extreme Opportunities returns as of June 5th 2020
More reading
- These 2 ASX shares are perfect for a beginner investor
- These are the 4 cheapest ETFs on the ASX
- Here are 3 top ASX tech shares to buy with $5,000 today
- Dow Jones Tumbles 1,200 Points on Virus Fears; Apple Stock Outperforms; Disney Stock Plunges
- ASX investors brace to ride the next wave of “irrational exuberance”
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Evan Niu, CFA owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has recommended Apple. 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.
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Faith in Fed to Get Fresh Test as Markets Shudder at Virus
Jun.28 — Danielle DiMartino Booth, former adviser to Dallas Fed President, discusses the recovery of the U.S. economy despite rising numbers of coronavirus cases. She speaks on “Bloomberg Markets: China Open.”from Yahoo Finance https://ift.tt/3iltvtE
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Here are 2 easy ways to invest in quality international shares on the ASX
If you’re wanting to add a little exposure to international markets to your portfolio, then the simplest way to do this is by investing in exchange traded funds (ETFs).
This is because there are ETFs out there that give investors access to whole indices, sectors, themes, and countries.
Two which I think are good options for investors wanting to invest in international shares are listed below:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The BetaShares Asia Technology Tigers ETF could be a great option for investors looking for exposure to the Asian market. This ETF aims to track the performance of an index comprising the 50 largest technology and ecommerce shares in Asia (excluding Japan). This includes the likes of Alibaba, Tencent, Baidu, and JD.com.
BetaShares notes that the ETF provides investors with diversified exposure to a high-growth sector that is under-represented in the Australian share market. Given how these companies are rapidly changing the lives of billions of people in the region, I believe the fund is well-placed to generate strong returns over the next decade and beyond.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
But if you’re more interested in gaining exposure to the U.S. share market, then you might want to consider the BetaShares NASDAQ 100 ETF. This fund gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. This means investors will be buying a piece of household names such as Amazon, Apple, Facebook, Netflix, and Starbucks through just a single investment.
Given the positive long term outlooks of many of the companies on the index, I believe the BetaShares NASDAQ 100 ETF could provide stronger returns than the ASX 200 over the next decade. This has certainly been the case over the last five years, with the ETF generating an average return of 20.54% per annum.
3 “Double Down” Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- 3 five-star ASX stocks to buy in July
- How I would construct a $50,000 growth portfolio
- These 2 ASX shares are perfect for a beginner investor
- Add some diversity to your portfolio with these quality ETFs
- Where I would spend $2000 on ASX shares right now
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers 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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Leading brokers name 3 ASX shares to buy right now
With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.
The good news is that brokers across the country are doing a lot of the hard work for you.
Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:
Redbubble Ltd (ASX: RBL)
According to a note out of Goldman Sachs, its analysts have upgraded this ecommerce company’s shares to a buy rating with a $2.35 price target. The broker made the move after Redbubble’s very strong trading update led to a revision to its estimates. Goldman has lifted its EBITDA estimates materially over the next couple of years to reflect higher revenues and lower customer acquisition costs. I think Goldman Sachs makes some good points and Redbubble could be worth a closer look.
Sigma Healthcare Ltd (ASX: SIG)
Analysts at Citi have upgraded this pharmacy chain operator and wholesaler’s shares to a buy rating with a 75 cents price target. The broker has been looking at the industry following the announcement of the new Community Pharmacy Agreement. This agreement aims to improve patient choice and health literacy about access to medicines through community pharmacies. Citi appears to have seen enough positives in it to upgrade Sigma’s shares. I’m not a big fan of Sigma, but it could be worth a closer look following this agreement.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of UBS reveals that its analysts have retained their buy rating and $14.80 price target on this wine company’s shares. Although the broker’s research indicates that Treasury Wine is continuing to lose market share in the United States, it feels investors should be focusing on the future. It sees a lot of value in its shares given its strong balance sheet, the restructure of the Americas business, and the potential spin off of the Penfolds business. I agree with UBS and feel Treasury Wine would be a good buy and hold option.
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!
*Extreme Opportunities returns as of June 5th 2020
More reading
- Could these ASX 100 shares help you retire early?
- The latest ASX shares to be upgraded by top brokers to “buy”
- Why AMP, IOOF, Redbubble, & Westpac shares are charging higher
- ASX retailers beware! Amazon.com is gearing up for its next major attack
- Redbubble share price rockets 40% on bumper Q4 sales growth
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended REDBUBBLE 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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Broker survey points to more upside for JB Hi-Fi and these ASX stocks
The JB Hi-Fi Limited (ASX: JBH) is bucking the sharp market sell-off as a broker survey finds it to be COVID-19 resistant. And it isn’t the only one either.
Shares in the electronics retailer jumped 1.3% to $42.80 in morning trade when the S&P/ASX 200 Index (Index:^AXJO) tumbled 1.3%.
Worries about a second wave of coronavirus infections are gripping global markets, but investors should stand ready to back ASX shares that are well placed to benefit from the crisis.
Survey’s surprising results
JP Morgan undertook a survey of 500 consumers to test some of its assumptions about the winners and losers from the pandemic – and some of the results were surprising.
“The COVID-19 pandemic and its lingering aftereffects look all but certain to fundamentally change how we work, consume, travel, interact and socialise,” said the broker.
“These tectonic shifts will have deep and far-reaching implications for a range of sectors and industries, with many likely to endure permanent structural change.”
The respondents to the survey were chosen across age, gender and employment status. This is to ensure they represented Australia’s demographic distribution.
Not so super for Supermarkets
The results throw into doubt JP Morgan’s belief that investors should be underweight on consumer discretionary stocks and neutral on consumer staples during the crisis.
“Consumers expect to shop online for food more post-COVID-19, yet surprisingly intend to also eat out more frequently,” said JP Morgan.
“We had expected a result showing food retail gaining share from cafes and restaurants.”
This feedback holds mixed implications for the broker’s “overweight” recommendation on Coles Group Ltd (ASX: COL) and Metcash Limited (ASX: MTS).
Malls are down but not out
Another surprise from the survey was consumer attitudes towards shopping malls. The surge in online sales from stuck-at-home consumers is a major risk factor for ASX-listed retail landlords.
“Somewhat surprisingly, only a small [number] of people expect to visit shopping centres less post-COVID-19 than more, with the average visitation also expected to be down only slightly,” added JP Morgan.
“We view this as positive for retail landlords, as we had expected a more dramatic shift given how they are priced.”
I still hold a negative view to the sector as visitations don’t necessarily equate to sales, but JP Morgan’s top pick here is GPT Group (ASX: GPT).
Driving better than flying
Another interesting finding was that nearly half of respondents expected to fly less even after state and international border restrictions are eased.
Further, 68% said they won’t fly internationally until a vaccine is found. This means driving holidays may be entering a renaissance period, and the stocks on the broker’s buy list that are leveraged to this are petrol stations Viva Energy Group Ltd (ASX: VEA) and Ampol Ltd (ASX: ALD).
On the flipside, the survey shows why the path to recovery for Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas Airways Limited (ASX: QAN) may take longer to eventuate.
Finally, the work-from-home culture that’s incubated during the pandemic is likely to continue to be a tailwind for JB Hi-Fi.
Around 45% of respondents intended to increase their spending on technology and JP Morgan is recommending investors buy this stock.
3 “Double Down” Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- ASX 200 drops 1.15%: Fisher & Paykel Healthcare impresses, big four banks tumble
- E-commerce is the COVID-19 success story. These businesses are the clear winners.
- Fortescue Metals and 2 other ASX 200 shares to buy in a recession
- Why you probably won’t buy stocks in the next market crash either
- Comments from CUA brings hope to COVID-19 stricken ASX banking stocks
Motley Fool contributor Brendon Lau 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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Shale pioneer Chesapeake Energy files for bankruptcy
Chesapeake Energy Corp filed for Chapter 11 on Sunday, becoming the largest U.S. oil and gas producer to seek bankruptcy protection in recent years as it bowed to heavy debts and the impact of the coronavirus outbreak on energy markets. The filing marks an end of an era for the Oklahoma City-based shale pioneer, and comes after months of negotiations with creditors. Reuters first reported in March the company had retained debt advisers.
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Worried about investing in a recession? Take this advice from Warren Buffett
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.
The stock market has been on a wild ride lately, and investors aren’t enjoying it. In fact, a Gallup poll taken at the end of April 2020 revealed just 21% of people think stocks or mutual funds are the best long-term investment. This was the lowest level since 2012. And that was well before it was announced that the country had officially entered a recession.
If you’re concerned about buying stocks now, you aren’t alone. But you may also be making a big mistake as a recession is as good a time to invest as any — or perhaps an even better one.
Don’t take my word for it either. Heed the advice of the Oracle of Omaha, as Warren Buffett, one of the world’s best investors, has a lot to say about investing in troubled times. Here are some pearls of wisdom to take to heart.
1.”Widespread fear is your friend as an investor because it serves up bargain purchases”
More than half of all Americans fear the market hasn’t hit bottom yet. If you’re one of them, you shouldn’t let fear prevent you from putting your money in.
As Buffett explained, when most people are fearful, it’s a good opportunity to purchase shares of stock at low prices. And who doesn’t want to buy low and sell high?
2. “The best chance to deploy capital is when things are going down”
While the market has largely recovered from the coronavirus-driven crash in March, another correction is inevitable as many investors are still overvaluing stocks because they aren’t taking into account the full economic impact COVID-19 could have throughout the summer and fall.
If the market ends up crashing again, you may be tempted to sit on the sidelines and wait until the bad times have passed. Instead, heed Buffett’s advice about the opportunity to invest on the downswing and take the chance to get your money in to score even deeper discounts.
3. “Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance”
A quick glance at the news shows that commentators aren’t very hopeful about the future. And with the country in a recession, coronavirus cases rising, and justifiable fear of a second wave, you won’t get much reassurance right now.
But according to Buffett, that’s a good thing because you won’t be paying a high price for words that mean nothing in the end since, after all, no one can predict what’s coming.
4. “Risk comes from not knowing what you’re doing”
Americans may be wary of stocks because they’re worried about the risk of loss — and March’s market crash didn’t help allay their fears. But, as Buffett points out, putting your money into the market really only carries big risks if you don’t know how to do it right.
Of course, any investment could lose money. But if you know how to pick solid companies to invest in (or you invest in index funds that track the market’s performance) and you build a diversified portfolio, the most likely outcome based on decades of historical data is that you’ll earn a reasonable return overall, over time.
This doesn’t mean no investments will perform poorly, and it doesn’t even mean that you won’t have bad years. But it does mean that when you take the time to learn how to invest, you invest for the long term, and as you make informed decisions in building a diversified portfolio, you reduce your risk — even if you’re investing in a recession.
Of course, on the flip side, if you think you can invest your money during the downturn and make a quick buck without taking the time to learn the fundamentals of sound investing, you could be setting yourself up for disaster.
5. “Predicting rain doesn’t count; building arks does”
There’s plenty of reason for doom and gloom during the 2020 recession, but anticipating bad times does little to help you survive them.
Instead, follow Buffett’s wise words and take the time to build your ark. You can do this by developing a solid investment strategy, researching and picking stocks you’ll be happy holding for a while, and making sure you’ve taken the steps needed to recession-proof your finances.
Don’t let the opportunity to invest during a recession pass you by
Recessions almost always present buying opportunities, but this one is unique because it wasn’t driven by natural economic cycles but rather by a black swan event. If effective treatments are developed for coronavirus or a vaccine comes along sooner than expected, economic recovery may be swift.
Don’t miss out on the chance to invest when things look bleak — as long as you do it wisely. Otherwise, you could very well come to regret it.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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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 Worried about investing in a recession? Take this advice from Warren Buffett 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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