After an incredible few months on the share market, I’m sure many an ASX investor is feeling flush right now. The S&P/ASX 200 Index (ASX: XJO) is up more than 33% since bottoming out on 23 March. That represents a lot of ASX 200 shares that have given investors impressive gains over the last 5 or so months.

And for some ASX shares, it’s an even better story. Afterpay Ltd (ASX: APT) shares are still up more than 800% since 23 March, despite this week’s heavy selling. It’s a similar story with Zip Co Ltd (ASX: Z1P), Marley Spoon AG (ASX: MMM) and Sezzle Inc (ASX: SZL).

But now we are putting some of these (frankly) sometimes ridiculous gains in the rear-view mirror, I’m sure there are many investors wondering ‘what’s next’. After all, we investors are trained to be ever-wary of good times turning sour in a rapid fashion. And there’s never an investor who feels more vulnerable than one sitting on a triple-digit profit margin after just a few months.

Of course, there’s nothing to indicate that markets are today in any danger of a crash in the near-term future. The ASX 200 is (at the time of writing) up a healthy 1.7% to 6,057 points, pretty standard.

But one piece of news has caught my eye this week, and I think it doesn’t bode too well for investors.

Enter the Future Fund

The Future Fund is Australia’s national sovereign wealth fund that was initially set up in 2006 by the then-government of John Howard. It was established to help fund the federal government’s payment of Commonwealth superannuation liabilities. Today, it manages $161 billion worth of assets, which are invested in a range of asset classes including cash, foreign currencies, bonds, shares and unlisted assets such as infrastructure.

According to reporting in the Australian Financial Review (AFR), the Future Fund has turned bearish on global share markets. That’s the conclusion I’m drawing from the fund’s decision to increase its cash position from 9.6% to 17% of its total asset allocation over the quarter ending 30 June 2020, anyway.

Further evidence for this bold claim? Well, the AFR reports that Future Fund chief executive Raphael Arndt had this to say on the growing cash position:

We don’t feel any pressure to deploy that liquidity… There is not a lot of distress baked into asset pricing, but there’s certainly the potential for that to emerge as the stimulus is pulled back over the next year or so… And that’s why we think we’re much better off being positioned in a cautious way right now.

To me, this statement reads ‘shares are looking overvalued and we think there’s a significant chance they will be a lot cheaper sometime in the next year’. In other words, the Future Fund is positioning itself for another share market crash, or something close to it.

Cash is king?

So should ASX investors take this hint and start stockpiling cash? Well, yes and no in my opinion. I do think now is the time to start building a modest cash position out in your investment portfolio if you haven’t done so already – perhaps a 10% or 20% allocation. The gains we have seen over the last 5 or so months are unlikely to be repeated over the next 5 months, at least in my opinion.

But I’m also not advocating investors sell everything and go underground. There’s a difference between hedging your portfolio’s risk exposure with cash and trying to time the markets with everything you’ve got. Everyone has different volatility tolerances, but if you’re one of those investors who can’t stomach a market drop, remember, it’s usually too late to take money off the table during a market crash.

More reading

• 3 fantastic ASX growth shares to buy and hold
• Latest ASX stocks brokers are urging you to buy today
• Praemium share price edges higher after Powerwrap offer goes unconditional
• Strike Resources share price wanes despite moving closer to an off-take agreement
• Some ASX winners and losers from a high Aussie dollar

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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 Reject Shop Ltd (ASX: TRS) share price is trading 2.01% higher today after the company signed a new deal with a supermarket giant.

Reject Shop share price lifts on deal with Tesco

Earlier today an article on news.com.au broke the news that the Reject Shop had inked a new 3-year deal with UK supermarket giant, Tesco.

According to the article, the new partnership will see Tesco-branded grocery items stocked in 354 Reject Shop stores. The first products to be stocked will include packaged food, health, beauty and household products.

The Reject Shop’s management highlighted that the deal will offer customers more choice and high quality products at a discount price.

Reject Shop CEO Andre Reich stated: “We’re all facing tough economic times, and The Reject Shop will always help people save money”.

How did the Reject Shop perform in FY20?

For FY20, the Reject Shop reported a huge improvement in its financial performance.

After delivering a $16.9 million loss in FY19, the company reported a net profit of $1.1 million for FY20. Despite the return to profitability, shares in the Reject Shop dropped as the company missed net profit expectations.

The company also reported a 3.4% increase in sales for FY20 of $820.6 million and 30.1% surge in earnings before interest, taxes, depreciation and amortisation (EBITDA) of $23.7 million.

According to the company, sales growth was fuelled by strong consumer demand for ‘essential’ products during the COVID-19 pandemic. The Reject Shop reported strong performances in cleaning products, groceries, toiletries and pet care. 

Why the Reject Shop could be a recession-buster

Following today’s news of a 7% contraction in GDP growth, Australia is facing its first recession in nearly 30 years. As a result, discount retail operators like the Reject Shop could be poised to benefit.

With traditional retailers facing troubling times, shoppers could turn to budget retailers like Reject Shop. The company has a firm footing in in Australia’s ‘dollar shop’ industry and could see a surge in demand as economic times get tougher.

In addition to deals with supermarket giants like Tesco, Reject Shop is embarking on an ambitious growth plan. Additional initiatives include establishing more physical stores and online shopping facilities. This potential has been reflected in the Reject Shop’s share price, which has bolted more than 123% for the year.

More reading

• Here are the highlights of this ASX reporting season
• Reject Shop share price dives 12% on FY20 results
• 2 ASX retail shares on my radar in 2020
• 2 ASX shares that have benefitted from measures to reboot the economy

Motley Fool contributor Nikhil Gangaram 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 The Reject Shop could be a recession-buster after signing new deal appeared first on Motley Fool Australia.

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Are you looking for growth shares that you can buy and hold? Then you might want to consider the ones listed below.

I believe all three have the potential to grow very strongly over the next decade and could provide market-beating returns for investors.

Here’s why I would buy these ASX growth shares:

Afterpay Ltd (ASX: APT)

The first growth share to consider buying is Afterpay. I believe the buy now pay later provider is a quality long term pick due to its leading position in an industry growing rapidly. And while competition is heating up in the industry after PayPal announced its Pay in 4 offering, I remain confident Afterpay’s first-mover advantage has given it an almost unassailable lead. Looking ahead, there’s still a very long runway for growth in the $5 trillion United States market. It also recently announced its launch into Europe and has its eyes on the Asian market. All in all, if everything goes to plan, I believe Afterpay has the potential to become a giant of the payments industry in the future.

Altium Limited (ASX: ALU)

Another growth share to buy and hold is Altium. I’m a big fan of the electronic design software company due to its key Altium Designer product and its exposure to the rapidly growing Internet of Things and artificial intelligence markets. Given how these markets are underpinning the proliferation of electronic devices globally, Altium looks well-positioned to benefit from increasing demand for its software. Overall, I believe it is well placed to achieve its revenue target of US$500 million later this decade. This is a big lift on its revenue of US$189 million in FY 2020.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX growth share to buy and hold is Pushpay. It is a fast-growing donor management platform provider for the faith and not-for-profit sectors. After smashing expectations in FY 2020, the company is on course for more strong growth in FY 2021. Management provided guidance for EBITDAF of between US$48 million and US$52 million. This will be a 91.2% to 107% increase, respectively, year on year. Pleasingly, its strong growth looks unlikely to stop there. Pushpay is targeting a 50% share of the medium to large church market in the future. This represents a US$1 billion opportunity and is many multiples of its current revenue.

More reading

• The Future Fund is stockpiling cash. Should ASX investors take the hint?
• Some ASX winners and losers from a high Aussie dollar
• Here’s why the Sezzle share price crashed 37% lower in just a few days
• Why we’re on track for more record ASX share prices
• Why the Zip share price is plummeting 15% 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 and recommends Altium. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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.

The post 3 fantastic ASX growth shares to buy and hold appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (Index:^AXJO) bounced back from yesterday’s sharp sell-off and ASX stocks that are on brokers’ latest buy list are outperforming.

The lack of any major negative surprises from the reporting season and signs of optimism in the fight against COVID-19 means equities are well placed to keep running ahead.

One stock that Goldman Sachs is sure will keep rising is the Lendlease Group (ASX: LLC) share price.

Conviction buy candidate

Shares in the construction and property group jumped 1.9% to $12.10 at the time of writing, but it’s still down by 33% since the start of 2020.

But it may not be lagging for long as Goldman reiterated its “buy” recommendation on the stock, which is also on its “conviction list” as it believes Lendlease is about to re-rate.

New strategy to unlock value

The group is aiming to get an 80% plus lift in its annual rate of development production. The earnings benefit from this will come from its Investments business in the form of faster funds under management (FUM) formation and greater cornerstone investments.

This is opposed to stronger development profits or return on invested capital (ROIC).

Management will also create additional core-plus and value-add funds and lower its exposure to peripheral businesses (e.g. US telco tower and retirement assets).

Further, Lendlease is removing non-cash mark-to-market movements from its core operating profit measure.

Re-rating opportunity

“All of these moves should in our view help to reframe investor perceptions of LLC,” said Goldman.

“The Group is already a leading manager of Real Estate assets, with A$36bn of FUM globally and arguably unrivalled product creation capabilities.

“In the past however, we believe the value of LLC’s high quality investment management platform has been obscured by its ‘lumpy’ development profit contributions, relatively low level of earnings visibility from period to period, and exposure to higher risk Engineering earnings (and losses).”

The broker’s price target on the stock is $16.37 a share.

Lower risk profile to trigger uplift

Another stock that is expected to benefit from a re-rating is the Cleanaway Waste Management Ltd (ASX: CWY) share price, according to Morgan Stanley.

The company posted a pleasing full year profit result and the broker sees further upside in the stock from a de-risking.

“We view CWY’s business resilience and growth opportunities as appealing, and its risk-adjusted return potential is in the top quartile of our utilities and infrastructure coverage,” said Morgan Stanley.

Better than its peers

Cleanaway revenue is less impacted by COVID-19 than its peer Bingo Industries Ltd (ASX: BIN). It also has greater ability to cut costs and its earnings are getting increasingly more defensive.

“We estimate that CWY earned ~28% of revenue and 37% of EBITDA from long-term municipal contracts or infrastructure assets in FY20,” added the broker.

“Over FY21-22, these utility/infrastructure earnings are likely to grow.”

Morgan Stanley’s 12-month price target on Cleanaway is $2.78 a share.

More reading

• The Future Fund is stockpiling cash. Should ASX investors take the hint?
• Praemium share price edges higher after Powerwrap offer goes unconditional
• Strike Resources share price wanes despite moving closer to an off-take agreement
• Why we’re on track for more record ASX share prices
• UBS picks the best and worst ASX stocks from the reporting season

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.

The post Latest ASX stocks brokers are urging you to buy today appeared first on Motley Fool Australia.

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The Praemium Ltd (ASX: PPS) share price is up 4.12% in late afternoon trading after an initial slow gain of 2% in morning trade.

Praemium’s share price is edging higher after news its offer to Australian wealth management platform Powerwrap shareholders is now totally unconditional. Praemium expects the offer to close on 21 September and urges Powerwrap shareholders to accept the offer “without delay”.

On July 9, Praemium first announced its takeover offer for Powerwrap.

What does Praemium do?

Praemium is global provider of technology platforms for managed accounts, investment administration and financial planning. Its fully integrated account management platform is suitable for both small and large account holders, enabling clients to see all their portfolios in one place. Its platform is used across the world by almost 1,000 financial institutions and more than 500,000 investors.

Praemium was founded in 2001, and Praemium shares began trading on the ASX in 2006. The company is based in Australia.

What did Praemium offer to Powerwrap shareholders?

On 9 July, Praemium announced a $55.6 million cash-and-scrip takeover offer for Powerwrap Limited. At that time Praemium already owned 14.7% of Powerwrap. Its offer covers all the remaining shares of Powerwrap it does not already own.

Praemium offered Powerwrap shareholders 7.5 cents cash and one Praemium share for every two Powerwrap shares they hold. According to the company, that represented an 82.3% premium to Powerwrap’s 90-day volume weighed average price (VWAP).

The initial offer came with conditions including 90% minimum acceptance by Powerwrap shareholders. As of this morning, the offer is unconditional.

Together, the group’s funds under administration (FUA) would exceed $27 billion.

What the management says

Both Powerwrap’s chair and Praemium’s CEO were positive about the offer.

Addressing the initial offer, Powerwrap chair Anthony Wamsteker said:

Powerwrap’s board believes the offer presents an excellent opportunity for Powerwrap shareholders to participate in the upside of a merged group that stands to benefit from significant potential synergies. With Powerwrap’s strong customer base and Praemium’s track record of profitability and cutting-edge technology, the benefits to Powerwrap shareholders are clear to the board. We encourage Powerwrap shareholders to take this next step in the company’s journey.

Praemium CEO Michael Ohanessian said:

We know Powerwrap well as one of their core technology partners. Together we are stronger with significant synergies between the two companies and higher growth potential in a combined entity. We believe the merged company would be a formidable force in the Australian platform industry, and are happy that the Powerwrap board sees the value and has recommended that their shareholders accept the offer to share in the success of a larger and better combined company.

The Praemium share price is up more than 32% since it made the initial offer on 9 July.

In comparison, the All Ordinaries Index (ASX: XAO) is up less than 3% over that same time.

More reading

• Strike Resources share price wanes despite moving closer to an off-take agreement
• Why we’re on track for more record ASX share prices
• UBS picks the best and worst ASX stocks from the reporting season
• ASX 200 jumps 1.6%: Afterpay tumbles, IOOF crashes, CBA pushes higher
• 5 things to watch on the ASX 200 on Wednesday

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 Praemium Limited. The Motley Fool Australia has recommended Praemium 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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At present the Commonwealth Bank of Australia (ASX: CBA) is offering a base rate on its savings account of just 0.05%. This is largely in line with what the rest of the big four are offering.

This means that if you have $5,000 sitting in one, it would gain interest of just $25 per year.

Unfortunately, with economists tipping the cash rate to remain on hold at 0.25% for the next three years, things are unlikely to get any better in the near future.

On the assumption that this base rate will stay the same for the next three years, that $5,000 would grow to be worth a touch over $5,075 in September 2023.

Historically, the share market has generated a return of ~10% per annum for investors over the long term.

If you were to invest that $5,000 into the share market and earned a 10% annual return for three years, those funds would be worth $6,655 in September 2023. That’s a difference of $1,580!

In light of this, if I had $5,000 in a savings account and no immediate use for it, I would consider investing into the share market.

But which ASX shares should you buy? Two that I like are listed below:

Appen Ltd (ASX: APX)

The first share to consider buying is Appen. It is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Given the explosive growth of these markets, I believe it is well-positioned to deliver strong earnings growth over the 2020s.

ResMed Inc. (ASX: RMD)

Another option for the $5,000 is ResMed. I believe the medical device company could be a long term market beater. This is due to its leading position in the fast-growing sleep treatment market. The vast majority of sleep apnoea sufferers are yet to be diagnosed, but education around the condition is increasing. I expect this to lead to more and more diagnoses over the next decade, supporting consistently solid earnings growth.

More reading

• 3 ASX 200 shares to buy for strong returns
• UBS picks the best and worst ASX stocks from the reporting season
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Top ASX Stock Picks for September 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. 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 Where to invest $5,000 into ASX shares right now appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) is a great place to find good ASX shares to invest in.

If a business is in the ASX 200 it probably means it has grown enough to command an attractive market position in its industry. If you ignore the ASX 20, there are plenty of ASX shares with enough growth potential to beat the market over the longer-term.

That’s why I really like the below three ASX 200 shares:

ResMed Inc (ASX: RMD)

ResMed is one of the ASX’s leading healthcare businesses in my opinion.

A key focus of the business is developing equipment and technology used to help treat sleep apnoea which help people sleep better. However, over the past six months it has been a key business involved in helping support the COVID-19 pandemic response.

The ASX 200 share is a manufacturer of ventilators, including bilevels, as well as ventilation mask systems. In the fourth quarter of its FY20 it saw revenue grow by 9% and underlying net profit growth of 24%. Over FY20 it managed to grow its gross margin by 80 basis points to 59.8%. This increasing profitability helps the business grow net profit faster.

It also helps that ResMed is accelerating the launch of its cloud-based remote monitoring software for ventilators and Lumis devices across Europe. This increases the attractiveness of the ResMed offering.

I think ResMed is a very promising business, particularly with its growing software as a service segment which comes with high gross profit margins.

At the current ResMed share price it’s trading at 35x FY22’s estimated earnings. I think it could be smart time to buy this ASX 200 share whilst the Aussie dollar is looking stronger compared to the US dollar.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk is perhaps the world’s best infant formula business. ASX investors are lucky to be able to buy a piece of this New Zealand business.

It has been quite a few years since bare supermarket infant formula shelves first made news headlines and the company has kept growing strongly since 2015.

In FY20 alone the ASX 200 share reported full year revenue growth of 32.8% to NZ$1.73 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 32.9% to NZ$549.7 million and net profit after tax (NPAT) growth of 34.1% to NZ$385.8 million.

It’s growing impressively in both China and the US. The gross profit margin keeps improving. Even the ANZ segment keeps delivering double digit growth.

A2 Milk is expecting further strong revenue growth in FY21 and it may use some of its large cash pile to buy a 75% stake in Mataura Valley Milk, which has a newly-commissioned manufacturing facility in New Zealand.

I believe A2 Milk has many years of double digit growth ahead of it. Particularly because it keeps expanding its product range to new markets.

The A2 Milk share price is trading at 27x FY22’s estimated earnings. It has fallen back over the past few weeks, presenting a good buying opportunity in my opinion.

Service Stream Limited (ASX: SSM)

This ASX 200 share looks like a solid investment opportunity to me.

It’s somewhat of an infrastructure play as it’s involved in the design, construction and maintenance of various networks such as telecommunications and utilities.

The company boasts that more than 84% of its revenue is ‘annuity revenue’ with long-term, low-risk agreements. Its customer base are clients like network owners, operators, regulators and government organisations. Sounds like a reliable group of clients to me.

The underlying performance of the business in FY20 was good with revenue growth of 9% to $929.1 million and EBITDA growth of 15.9% to $93.3 million. The EBITDA margin improved by 90 basis points to 11.4%.  

Service Stream said it continues to have a good pipeline of opportunities and it’s also looking for acquisition targets.

The ASX 200 share has a grossed-up dividend yield of 6.6%. Combine that good yield with the fact it’s trading at only 14x FY21’s estimated earnings makes me think this is an undervalued growth share.

Foolish takeaway

I believe all three of these ASX 200 shares have a higher-than-average chance of beating the market over the next 12 months and the longer-term at today’s prices. I think A2 Milk could produce the best return of my three ideas, though Service Stream looks like a solid dividend idea right now.

More reading

• Where to invest $5,000 into ASX shares right now
• Some ASX winners and losers from a high Aussie dollar
• UBS picks the best and worst ASX stocks from the reporting season
• 3 ASX shares to buy for international growth
• The a2 Milk share price sank 12% lower in August: Should you buy the dip?

The post 3 ASX 200 shares to buy for strong returns appeared first on Motley Fool Australia.

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I don’t usually get to give guarantees.

ASIC, the financial services regulator, rightly takes a very dim view of such language.

And frankly I wouldn’t usually give one, either – I don’t sell false promises.

But this time, in full view of the corporate cop, I get to give you a rock-solid, cast-iron, guaranteed return.

But first, let me ask you some questions:

How far would you go to save 5c a litre on petrol?

What about 10c.

Do you shop at different supermarkets sometimes, to get their specials?

Money for jam, right? (If you’ll excuse the pun)

Do you shop around for the best price on your favourite beer, wine or whisky?

And how long has it been since you got a pay rise?

What would you say if your boss offered you more money?

If the answer is ‘no’, please say ‘yes’ anyway, and you can just send me the extra cash you don’t want!

These are smart and simple ways to save money… (but please don’t drive 40km to save 2c a litre on juice!)

But what if I offered you something even better than all that.

What if, with a single phone call, you could be better off by thousands of dollars – maybe even tens of thousands… and tax free?

No, I’m not spruiking some ‘get rich quick’ foreign exchange or CFD trading ‘system’.

No, it’s not a Nigerian Prince email scam.

It’s way simpler than that.

I don’t want your bank details. I don’t want you to stay up all night trading the Yen Sterling cross (that’s a thing, right?).

I want you to make a single phone call.

No, not to a dealer of illicit substances. And no, you’re not going to start demanding protection money.

This is a very simple, polite phone call, with a very simple request.

And it’s to your bank.

To explain, I want you to take a trip of logic with me.

Let’s say there are maybe 40 lenders of significance in Australia (there’s probably closer to double that, but let’s keep it simple).

And let’s say they each offer 5 different loan types (again, that’s likely to be a significant underestimate.)

Simple multiplication tells us there are at least 200 different loan products available.

Now, let’s assume half of those are unsuitable for you, for one reason or another.

That leaves 100 different loan ‘products’ you could be choosing.

And with each of those loans having different interest rates, fees, features, terms and conditions, that means there’s essentially a 1% chance you’re using the product that’s best for you.

Put another way, I reckon the odds are excellent that 99 out of every 100 people reading this, right now, are paying too much for their home loan.

Now, if your bank is your favourite charity, that’s cool.

By all means, donate extra to their CEO bonuses, Christmas parties and cheesy marketing budgets.

But if it’s not…

And if you think the money could be better spent elsewhere…

Then don’t you owe it to yourself to make sure you’re not paying too much on your home loan?

Let’s see what the numbers say.

If you have a $500,000 mortgage, and you can get a 0.5 per cent reduction in your interest rate, that’ll save you $50,000 over the life of a 30-year loan.

That’s a new car.

Again, if you don’t want a new car, or you can’t find anything else to do with 50-large, email me and I’ll send you my bank account details.

(Or, you know, you could find a charity that desperately needs more donations, right now.)

But trust me when I say your bank doesn’t need your generous donation.

Now, back to my guarantee.

I can’t make promises of future market returns. I can’t promise you won’t lose money on shares, property, art or Beanie Baby collections.

But the easiest guarantee in the world is one I don’t even need to promise – because the money will be right there, in your bank account, every single month: the money you save by paying less interest on your loan.

And, on your own home, it’s tax-free!

Now, I’ve been running something of a campaign on social media this week.

I’m using the hashtag #getabetterrate

(You can follow me on Twitter, Facebook or Instagram to see it in action!)

Here are three pieces of feedback:

“I recently moved to ANZ fixed rate 2.19. Unfortunately, I was with another lender with 3.85 last year. I’m saving around $700 each month now.”

“Finally changed to Macquarie this year after being too lazy to look into it. 2.19% fixed for next two years was 4.6% elsewhere #getabetterrate”

And:

“For my investment loan, moved from 3.67% with a monthly fee, to 2.83% without a monthly fee and 100% offset. Had to change banks. The old bank just could not match it. The new bank made it easy, just needed to fill in a few forms. Glad I was able to #getabetterrate”

Seriously. Can you imagine how much those people are saving?

And not just this week, this month or this year.

That’s extra money in their pockets.

And, hopefully, they kept their repayments at the same level, meaning they’ll pay the loan off a helluva lot faster.

Yes, normally I write to you about investing. I think it’s a wonderful way to secure your financial future.

But if I’m going to do that, I should also be helping you in other ways – after all, the sooner you pay off your loan, and the less you waste in unnecessary interest, the closer you are to your goal and the quicker you’ll get there!

So, the ball is in your court, fellow Fool.

You can donate more to your bank.

Or you can #getabetterrate.

I know which one I’d prefer.

– – –

Oh, and if you’re wondering, here’s a very, very simple template for you to follow:

1. Check your loan statement, and find out what interest rate you’re paying.

2. Jump online and use a comparison site to see what else is on offer for your circumstances.

3. Call your bank, and ask them to match the best rate you can find, so you don’t have to leave.

4. If they won’t match – or won’t get close enough – then start the process of switching. Yes, there’s paperwork, but it could save you thousands!

See – it’s that easy.

– – –

So, what’s stopping you? Go on… #getabetterrate

(Oh, and if you do end up benefiting, please pay it forward by adding your story on social media using the #getabetterrate hashtag, so others might be motivated to try! Thanks in advance!)

Fool on!

More reading

• Praemium share price edges higher after Powerwrap offer goes unconditional
• Where to invest $5,000 into ASX shares right now
• 3 ASX 200 shares to buy for strong returns
• Strike Resources share price wanes despite moving closer to an off-take agreement
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Scott Phillips 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 Strike Resources Limited (ASX: SRK) share price may be a victim of buy the rumour, sell the fact.

Shares in the iron ore hopeful fell 2.9% to 16 cents even as the broader market rallied hard with the S&P/ASX 200 Index (Index:^AXJO) jumping 2% at the time of writing.

The sell-off comes on the back of news that Strike Resources took a step forward in completing its off take agreement at its t Paulsens East project in Western Australia.

Strike Resources share price outperforming

But Strike Resources shareholders are unlikely to be too fussed. The stock is still sitting on 170% gains over the past month.

The miner announced today that it completed a test pit and collected approximately three tonnes of bulk samples. The rock samples will be used for marketing, metallurgical test work and plant design.

The excavation exposed the multiple bands of high-grade hematite iron ore, which extend to depth and three kilometres east to west along strike.

Striking while the iron’s hot

The test pit is close to the eastern edge of the three kilometre long outcropping hematite ridge. This ridge contains the Joint Ore Reserves Committee Code (JORC) Indicated Mineral Resource of 9.6 million tonnes at 61.1% iron ore content.

Some of the samples were taken to ALS Ltd’s (ASX: ALQ) labs in Perth for testing. The results will help Strike Resources design of the mine crushing and screening circuit at Paulsens East.

Samples were also sent to potential customers who have expressed interest in securing an offtake agreement with Strike Resources. Management said that this was a key step in advancing discussions to a final agreement.

Are stars aligning for Paulsens East?

“The test pit excavation and bulk sample extraction are important steps in the advancement of the high grade Paulsens East Iron Ore Project,” said Strike Resources’ managing director, William Johnson.

“The excavation clearly highlighted the bands of high-grade hematite iron ore, which extend from the top of the ridge to depth and which make up the three kilometre long outcropping ridge.   

“Testwork on the sample material will allow us to optimise our final plant design and the production of Lump and Fines samples, which will be representative of our final products, will be important for concluding agreements with our potential customers.”

Strong interest in the sector

Investors interest in iron ore is burning hot as the price of the gravity-defying price of the commodity is stuck above US$120 a tonne.

Analysts have been continually upgrading their forecast for the iron ore price over the next three years. They may be forced to keep playing catchup the longer the iron ore price stays at current levels as their 2021 forecasts are well below the spot price.

The growing optimism towards the steel making ingredient is the key reason behind the Fortescue Metals Group Limited (ASX: FMG) share price and Rio Tinto Limited (ASX: RIO) share price rally.

More reading

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• Top brokers name 3 ASX shares to buy today
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• Why we’re on track for more record ASX share prices
• UBS picks the best and worst ASX stocks from the reporting season

Motley Fool contributor Brendon Lau owns shares of Rio Tinto 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $20.00 price target on this iron ore producer’s shares. With the spot iron ore price trading well above expectations, the broker appears to believe there could be upside risk to earnings forecasts. In addition to this, Macquarie is positive on dividends in FY 2021 and expects the miner to payout 80% of its earnings to shareholders. This is the high end of its guidance range. I agree with Macquarie and think Fortescue is a good option in the resources sector.

Temple & Webster Group Ltd (ASX: TPW)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and lifted the price target on this online retailer’s shares to $10.50. According to the note, the broker was pleased with its strong performance in FY 2020 and the operating leverage it is achieving. And while it acknowledges that current growth rates won’t be sustainable over the long term, it remains positive on its prospects in the near term and sees value in its shares at the current level. While I think Macquarie makes some good points, I feel its shares are looking a bit expensive now.

Westpac Banking Corp (ASX: WBC)

Analysts at Credit Suisse have retained their outperform rating and $20.60 price target on this banking giant’s shares. According to the note, the broker feels that softness in its capital position is weighing on its shares. However, it notes that Westpac is currently undertaking a major strategic review of its operations. It feels the bank could remove these concerns by divesting some of its non-core businesses. The broker estimates it could command upwards of almost $5 billion in total if it sold the majority of these businesses. I agree with Credit Suisse and feel it is worth sticking with Westpac.

More reading

• Some ASX winners and losers from a high Aussie dollar
• A strange thing is happening with index funds…
• Why the Fortescue share price went backward in August
• ASX 200 down 1.7%: Afterpay sinks on PayPal news, QBE sacks its CEO, bank shares lower
• This chart shows why big banks are in trouble

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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