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There is still much uncertainty with ASX shares at the moment.

The Reserve Bank has indicated there are more interest rate hikes to come. Inflation is still raging. And no one knows how hard the economy will be hit.

So in this environment, you need to have high belief in a stock to pluck up enough courage to buy it with your hard-earned.

Thankfully, Morgans investment advisor Jabin Hallihan named two ASX shares this week that he currently rates as high-conviction pickups:

Buying opportunity for huge upside

Silk Logistics Holdings Ltd (ASX: SLH) shares have lost more than 10.7% since the start of June.

The team at Morgans believes this just gives it more upside.

“This integrated logistics provider posted [an] underlying group net profit after tax of $15.8 million in fiscal year 2022, a 45% increase on the corresponding period,” Hallihan told The Bull.

“Silk Logistics continues to evaluate merger and acquisition opportunities as a means of adding further capacity across port and contract logistics.”

He added that management is also seeking more warehouse sites to upgrade the capability of its network.

Hallihan’s team has a price target of $3.50 for Silk Logistics shares, which represents a 62% upside from the current level.

Shaw and Partners also agrees with this assessment. Its analysts rate the stock as a strong buy, according to CMC Markets.

‘A bright outlook’ for analysts’ pet

Lovisa Holdings Ltd (ASX: LOV) is a favourite among analysts at the moment.

That’s despite a stunning 84.3% rally in the share price since mid-June.

The opinion seems to be that due to its low-cost focus, the accessories retail chain will be resistant to any forthcoming economic downturn.

Hallihan’s positive on the business.

“Lovisa offers a bright outlook,” he said.

“Investors reacted positively to its fiscal year 2022 result.”

Lovisa’s “broad product range” and high gross margins puts it into Hallihan’s good books.

“This fashion jewellery and accessories retailer has developed a vertically integrated business model that’s capable of responding rapidly to changing trends.”

QVG Capital last week liked the expansion progress in Lovisa’s latest performance update.

“Its result was glittering and the global roll-out of high returning stores appears to be accelerating.”

The post 62% upside: Expert names 2 ASX shares looking beautiful right now appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• 3 ASX All Ordinaries shares hitting all-time highs on Monday
• Why A2 Milk, BHP, Lovisa, and Nickel Industries shares are charging higher
• I shouldn’t have sold this ASX share two years ago: fund
• 3 ASX 300 shares hitting new highs on Friday

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Silk Logistics Holdings Limited. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Silk Logistics Holdings Limited. 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 A2 Milk Company Ltd (ASX: A2M) share price was on form on Monday.

The infant formula company’s shares rose 2.5% to $5.70 following the release of a positive update on its Chinese product registration.

This means the A2 Milk share price is now up over 15% since this time last month.

Can the A2 Milk share price keep rising?

The good news for investors is that one leading broker still sees plenty of upside in the A2 Milk share price.

According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company’s shares to $6.60.

Based on where its shares are trading today, this implies potential upside of 16% for investors over the next 12 months.

What did the broker say?

Bell Potter highlights that Australia-China exports, which is seen as a daigou proxy, were up 111% year over year in July. It notes that this is “strongest read in nine months.”

In addition, China infant formula imports were up 31% year over year in July. The broker highlights that “China landed volumes seemed to find a floor in Apr’22 and have been climbing since.”

All in all, the broker appears to see this data as supportive of its estimates. As a result, the broker continues to forecast strong earnings growth in the coming years. It commented:

Our Buy rating is unchanged. If A2M can execute on its strategy to achieve ~NZ$2Bn in FY26e revenues and EBITDA margins in the teens, then it would imply compound double digit EPS growth through to FY26e. With an increased focus on direct channels to market (73% of 2H22 IMF sales) we see the offline expansion program as key to achieving these targets, noting that A2M is relatively underrepresented in this segment, suggesting a reasonable runway of growth.

The post Broker says the A2 Milk share price can charge even higher appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, BHP, Lovisa, and Nickel Industries shares are charging higher
• Why is the A2 Milk share price storming 6% higher on Monday?
• A2 Milk share price on watch following China update
• Why A2 Milk, Life360, Nine, and Ramsay shares are dropping
• Why is the A2 Milk share price tumbling lower today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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 world can be a frightening place at the best of times, but uncertainty has dominated even more than usual in 2022.

First there were inflation and interest rates fears, then Russian troops invaded Ukraine, followed by oil and gas prices skyrocketing. Then came the actual interest rate rises, recession fears and second-guessing when central banks might stop the pain.

All this anxiety has caused most non-mining ASX shares to tumble in value over the year.

There was some relief over July and August, but much of those gains have been forfeited since and, overall, everyone’s portfolios are well down on where they were a year ago.

And, most critically, no one knows what’s going to happen next.

Was the July-August rally a dead cat bounce? Or was it the start of a new bull run?

Will the Reserve Bank and United States Federal Reserve stop raising rates at the end of the year? Early next year? End of 2023?

It’s not surprising many investors are confused about what they should do.

It’s always darkest before dawn

Forager Funds chief investment officer Steve Johnson confirmed in a memo to clients that uncertainty paralysis is widespread at the moment.

“Are you waiting for clarity before putting more money into the market? Keen to see what happens with inflation and interest rates before investing more in volatile equities?

“You aren’t on your own. It’s the most common feedback we hear from investors at the moment. Everyone wants to wait and see.”

But he warned that only disappointment awaits those who remain idle.

He shared a quote from CMO founder Jeremy Grantham in his March 2009 letter to investors in the midst of the global financial crisis:

The tide doesn’t turn when there’s light at the end of the tunnel. The tide turns when it’s pitch black, just a shade less pitch black than the day before.

Those words are forever seared into Johnson’s brain.

“For those who don’t remember, the world economy was staring down the prospect of another great depression,” he said.

“Six months later the S&P 500 Index (SP: .INX) of US-listed stocks was up 51%. Australia’s All Ordinaries Index (ASX: XAO) had risen 48%.”

He pointed out that all these spectacular climbs came well before the cloud over the economy had moved away.

“We were well into 2010 before the risk of economic meltdown had abated. Yet all of the gains came before the coast was clear.”

So by sitting and waiting, those non-investors could miss out on a once-in-a-decade rally before they even realise what’s happened.

By the time uncertainty clears, it’s too late

Johnson made it clear that his team does not pretend to know whether the worst is behind the share markets.

“Trying to pick the top or bottom of the markets is nigh on impossible,” he said.

“If you do want to nail it, though, history has shown that waiting for less uncertainty is not going to help. You need to pick the point of maximum pessimism, the point where uncertainty is at its peak.”

By the time the economic and geopolitical uncertainties have resolved themselves, it’ll be too late. ASX shares, as a barometer of the future, will have already made their chunkiest gains.

“Whether this is a false dawn or the real one, you don’t get to wait until the sun comes up and still get to buy cheap stocks,” said Johnson.

“We believe it is uncertainty that creates the opportunity and, the second the uncertainty disappears, the opportunities disappear with it.”

He added that already many ASX shares in Forager’s funds are trading much higher than their 2022 troughs.

Private capital seems to realise that there are bargains to be had on the ASX. 

“On the ASX, two holdings in the Forager Australian Shares Fund have been subject to takeovers in August,” said Johnson.

“Don’t let uncertainty be the thing that holds you back from great long-term investments.”

The post Are you waiting to see what happens to ASX shares? DON’T appeared first on The Motley Fool Australia.

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More reading

• Analysts say these ASX dividend shares are buys
• 5 things to watch on the ASX 200 on Tuesday
• Down 21%, what happened to the MA Financial share price today?
• Up 50% so far this year, is it too late to buy Woodside shares?
• Tyro share price dips amid Potentia pressure rumours

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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If you’re wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for investors to look at is footwear retailer Accent.

After a very tough time in FY 2022, Accent appears to be back on track this year. Its recent full year results release revealed that like for likes sales were up strongly during the early stages of FY 2023.

The team at Bell Potter remain very positive on the company and recently put a buy rating and $2.00 price target on its shares. It commented:

The first 7 weeks of FY23 has seen positive like-for-like (LFL) sales +18.9% vs the -16% LFL sales growth for the same period in FY22 and -13% for 1H22. The company’s focus on achieving full gross margins was encouraging as the company executes on a disciplined growth strategy to sustain earnings growth.

Bell Potter is also forecasting some attractive dividend yields in the coming years. It is expecting fully franked dividends of 9.5 cents per share in FY 2023 and 12.7 cents per share in FY 2024. Based on the current Accent share price of $1.43, this would mean yields of 6.6% and 8.8%, respectively, over the next couple of years.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is fellow retailer Harvey Norman.

Analysts at Goldman Sachs rate the company highly and have named it as a buy recently with a $4.80 price target. The broker continues to believe that Harvey Norman is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics. It expects this to support stronger than consensus earnings in FY 2023. Goldman explained:

Our FY23 NPAT is +7% vs FactSet consensus and our TP implied ex-property FY24E P/E of ~5x with dividend yield of 8%. We believe that HVN offers 21% TSR at an attractive valuation; reiterate buy.

Another positive is that the broker expects Harvey Norman to provide investors with generous dividends in the near term. It is forecasting fully franked dividends per share of 38 cents in FY 2023 and 32 cents in FY 2024. Based on the current Harvey Norman share price of $4.42, this will mean yields of 8.6% and 7.2%, respectively.

The post Analysts say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• Are ‘cracks starting to show’ for ASX 200 retail shares?
• Analysts are tipping 6%+ yields from these ASX dividend shares
• Brokers name 3 ASX shares to buy today
• Brokers name 2 top ASX dividend shares to buy now
• 3 ASX 300 shares trading ex-dividend today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Accent Group. 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a very positive fashion. The benchmark index rose 1% to 6,964.5 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market is expected to rise again on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 41 points or 0.6% higher. In the United States, the Dow Jones rose 0.7%, the S&P 500 was up 1.1%, and the NASDAQ climbed 1.3%. Investors appear to be betting on an upcoming US economic data release showing that inflation is easing.

AGL outage update

The AGL Energy Limited (ASX: AGL) share price could come under pressure on Tuesday. After the market close on Monday, the energy company revealed that the Loy Yang A Unit 2 will be out of action for longer than expected. During testing in the final assembly of the generator rotor, a defect was identified. This is expected to delay the return of Loy Yang A Unit 2 until late October. However, management expects its strong performance during August and September to help offset the earnings impact.

Oil prices push higher

It could be a good day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$87.96 a barrel and the Brent crude oil price has risen 1.5% to US$94.19 a barrel. Supply uncertainty has been boosting prices.

Allkem tipped as a buy

The Allkem Ltd (ASX: AKE) share price may have been on fire recently but analysts at Bell Potter still see plenty of room for it to climb higher. According to a note this morning, the broker has retained its buy rating and lifted its price target on the lithium miner’s shares to $20.04. This implies potential upside of 29% for investors over the next 12 months.

Gold price lifts

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.4% to US$1,736.0 an ounce. A softer US dollar and easing inflation bets gave the precious metal a boost.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• 2 ASX lithium shares leaping more than 9% on Monday
• Santos share price dips amid sell-off rumours
• The AGL share price has tumbled 16% in a month. What’s next?
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX lithium shares to buy

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 MA Financial Group Ltd (ASX: MAF) share price endured a tough session on Monday, which included an unexpected trading halt. Shares in the company were 21.76% lower at $3.99 at the close today.

The MA Financial share price went tumbling, and an unprecedented velocity of shares traded on the red candles this morning before being halted. This afternoon, the company issued an ASX market update concerning media coverage around the speculated axing of the significant investor visa (SIV).

The company attempted to dispel investor fears in its update by reconfirming its FY22 guidance “for 30% to 40% underlying earnings per share growth on FY21”.

MA Financial also supplied other details to the market. Let’s cover the highlights.

What did the company say?

In reaffirming its guidance, the company described its business model as “highly diversified” with asset management, lending, corporate advisory and equities segments.

The company also responded to the description that its asset management business was almost equally funded by resident and non-migration investors. It noted that 63% of its assets under management (AUM) were non-migration related, which was a higher percentage than the 52.8% originally reported in the Australian Financial Review.

It provided some nuance to this side of the business, saying:

In the first eight months of FY22, 85% of gross fund inflows into the asset management business related to non-migration investors, with the remaining 15% sourced from clients under migration-related programmes.

In its response to the price query, the company noted that today’s price and volume action happened alongside the government’s review of its immigration system and SIV visa and that it had no other news or explanation for these movements.

MA Financial share price snapshot

The MA Financial share price is down more than 55% year to date. In comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 8.25% over the same period.

The company’s market capitalisation is $702 million at the time of writing.

The post Down 21%, what happened to the MA Financial share price today? appeared first on The Motley Fool Australia.

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More reading

• Why Chorus, MA Financial, Tyro, and Vulcan Energy shares are dropping
• Why did the MA Financial share price just crash 20% before being halted?
• 3 ASX 300 financial shares climbing on earnings updates
• Why these 2 ASX shares rocketed 40% last month

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Tyro Payments Ltd (ASX: TYR) share price dropped by more than 5% today. It was reported that the potential suitor of the payments business, Potentia Capital Management, has been trying to get shareholders to accept its offer.

For readers who didn’t see it last week, Tyro received an “unsolicited, non-binding and indicative proposal”. The offer was from a consortium of private investors, led by Potential Capital Management. The offer was $1.27 per share, with the option for shareholders to receive shares in a private Tyro business.

Potentia advised that it has entered into a voting and acceptance deed with Mike Cannon-Brookes’ Grok in relation to its 12.5% shareholding in Tyro.

The Tyro board rejected the offer, indicating that it significantly undervalued Tyro and that it’s highly opportunistic given the offer price is “substantially below” where the Tyro share price has traded in the last year. It pointed out that the company has attractive growth prospects as it increases its market share. The company said it’s expecting to achieve strong and improving operating leverage in the medium-term.

What happened today?

The Australian reports that Potentia has been trying to convince shareholders to accept the takeover bid. It reported that Cannon-Brookes wants to be a co-owner of Tyro if a sufficiently better bid doesn’t come in.

The newspaper reported that other shareholders are unlikely to accept the deal because of how quickly the offer was rejected.

Morgan Stanley analysts think that an offer of between $2 to $2.50 would be the “going rate” for similar companies. Don’t forget, the company’s initial public offer (IPO) price was $2.75 per share. So the offer price represented an offer of less than half.

Tyro Payments share price snapshot

Over the last month, Tyro shares have risen by around 30%. This rise came after the Potentia bid.

The broker UBS has a buy rating and a price target of $1.80 on the business after the initial takeover bid came in. That represents a rise of more than 30%, if the broker ends up being right.

The post Tyro share price dips amid Potentia pressure rumours appeared first on The Motley Fool Australia.

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More reading

• Why Chorus, MA Financial, Tyro, and Vulcan Energy shares are dropping
• Tyro share price climbs another 10%. Could a fresh takeover bid be on the horizon?
• Nitro now Tyro: Could there be ‘Potentia-l’ for other ASX tech shares?
• Tyro share price rallies 31% following rejected takeover bid
• 2 heart-breaking ASX shares finally turning it around: Morgans

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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 MC Mining Ltd (ASX: MCM) share price was on fire again on Monday after returning from a trading halt.

The coal explorer’s shares jumped a further 14% to 57 cents.

This means the MC Mining share price is now up 87% since this time last week.

Why is the MC Mining share price on fire?

Investors have been scrambling to buy MC Mining and other ASX coal shares such as Whitehaven Coal Ltd (ASX: WHC) recently in response to sky high coal prices.

In addition, after the market close on Friday, the company responded to a price query response from the ASX.

MC Mining suggested that the positive work that has been happening at its operations recently could be behind the rampant buying. The company explained:

[T]he Company has recently made a number of positive announcements (including in relation to the potential optimisation of its flagship Makhado hard coking coal project (Makhado) and in relation to a sales and marketing agreement which is expected to facilitate the sale and export of coal from the Company’s Uitkomst Colliery) at favourable API4 prices.

MC Mining also notes that these positive developments have occurred at a time when coal is a hot commodity.

The above noted positive announcements have been made by the Company at a time of robust hard coking coal prices, recent major corporate activity in the (increasingly buoyant) coal sector in Australia, and internationally, and renewed investor interest in advanced coal exploration, project development and mining companies.

Funding update

MC Mining also provided a small update on the its plans to implement a comprehensive financing solution to enable the development of the Makhado project.

While no agreement or decision has been entered into or made, the company continues to explore various fundraising options including both debt and equity financing. However, although talks are well advanced, it warned that they are still incomplete and there can be no certainty that any such transaction will be initiated.

The post Boom! This ASX coal share has rocketed 90% in a week appeared first on The Motley Fool Australia.

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More reading

• Why did the De Grey share price leap 5% to a 4-month high today?
• Have BrainChip shares been a good investment so far in 2022?
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• The Northern Star share price has dumped 8% in a month. So what’s the dividend yield right now?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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) ended up having a stellar start to the trading week during this Monday’s session. At the closing bell, the ASX 200 finished up at 6,964.5 points, a healthy gain of 1.02% over Friday’s close. But the De Grey Mining Limited (ASX: DEG) share price fared even better than that.

De Grey shares finished up at $1.14 each at market close, up a pleasing 5.07% from last Friday’s close of $1.08 per share. This latest rise means the De Grey share price has gained an impressive near-60% from the 52-week low of 72 cents per share that we saw only a few months ago. It also means De Grey is now at its highest share price in four months.

So what caused such an enthusiastic share price gain for De Grey shares this Monday?

What gave the De Grey share price its glitter today?

Well, it seems like it was nothing to do with any ASX announcements out of the company itself, seeing as there were none today. However, last Friday did see ASX broker Macquarie come out with a new outperform rating on the company.

As we covered at the time, Macquarie gave De Grey an optimistic 12-month share price target of $1.65. This was spurred by some good news out last week for the miner’s Mallina gold project in Western Australia.

But we also have another potential catalyst to discuss: the gold price itself.

As a gold miner, De Grey’s fortunes are heavily dependent on what price the yellow metal itself can command.

And, as my Fool colleague James covered this morning, gold has indeed had a positive movement in recent days. As stated this morning, “the spot gold price was up 0.4% to US$1,727.6 an ounce on Friday night. A softening US dollar gave the precious metal a boost”.

So this could be feeding into the stellar gains De Grey shares saw today as well. Other ASX gold shares like Newcrest Mining Ltd (ASX: NCM) and Gold Road Resources Ltd (ASX: GOR) also had positive days today, which adds credence to this hypothesis.

So it’s likely that it’s this mix of rising gold prices, positive developments out of the company and some love from brokers, that has led the De Grey share price to such a rewarding day today.

At the current De Grey Mining share price, this ASX 200 gold share has a market capitalisation of $1.61 billion.

The post Why did the De Grey share price leap 5% to a 4-month high today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Popular tech share BrainChip Holdings Ltd (ASX: BRN) has all the hallmarks of being a 10-bagger.

The company is the worldwide leader in edge artificial intelligence (AI) on-chip processing and learning.

Its first-to-market neuromorphic processor, Akida, mimics the human brain to meet the complex demands of edge devices.

Some of BrainChip’s clients include major automobile company Mercedes and United States aerospace giant NASA.

While shares in the AI company have see-sawed as of late, this hasn’t been the case for 2022.

Let’s look at how the share price has performed for the year so far.

How have BrainChip shares tracked so far in 2022?

The BrainChip share price kicked off the 2022 year at 68 cents apiece, closing in on its record high of 97 cents on 9 September 2020.

However, the new year brought fortunes to investors as hype kicked in, and the share rocketed to a new all-time high of $2.34 on 19 January.

Unfortunately, this was short-lived as profit-takers swooped in, sending BrainChip shares to tumble under the $1 mark in March.

For most of the year, BrainChip continued to trade in a sideways channel as the company kept quiet on its announcements.

When market volatility hit in June, BrainChip shares tanked to a year-to-date low of 76.5 cents.

Fears of an impending recession sparked a strong sell-off across the market.

A rebound quickly ensued as bargain-hunters took up positions and sent the AI company’s shares to as high as $1.365 on 28 July.

While for now the share has retraced to 95 cents at Monday’s close, investors would be up 40% for 2022. That is a decent run, given the average return for a stock is around 7% per year.

Keep in mind, though, that the United States Federal Reserve is meeting this month to decide whether or not to lift interest rates.

If it does, this could see the tech-heavy Nasdaq fall, which would have consequences for BrainChip shares.

Should the Fed Reserve hold interest rates, the rally will likely continue, pushing BrainChip shares higher.

The post Have BrainChip shares been a good investment so far in 2022? appeared first on The Motley Fool Australia.

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More reading

• Why did the Brainchip share price blast 6% higher today?
• Megaport share price soars 10% as ASX tech shares trump on Thursday
• What is the highest BrainChip shares have ever been?
• Burning through cash: Is BrainChip or Weebit chewing up more capital?
• Why is the BrainChip share price in the red on Thursday?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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