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It’s been a bleak start to the week for ASX shares so far this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has lost a meaty 1.33% and is well back below 7,400 points. But ASX tech shares are faring far worse on the whole today.

For starters, the S&P/ASX All Technology Index (ASX: XTX) has plunged past the losses of the broader market, currently down a nasty 3.94%. But, as you might expect, some ASX tech shares are suffering even more. Take Xero Limited (ASX: XRO), down a horrible 5.79% at $90.77 a share. Tyro Payments Ltd (ASX: TYR) has also fallen 5.82%, while WiseTech Global Ltd (ASX: WTC) is down 6.6%. And Pro Medicus Limited (ASX: PME) has lost a painful 6.5%.

So what’s going on with this clear sector-wide move?

Why are ASX tech shares getting sold off?

Well, there’s nothing specific impacting the tech sector today. However, we often see moves like this when there is broad selling pressure in the market. ASX tech shares tend to outperform the market on good days, and underperform on bad days. Today is a prime example of the latter.

Additionally, the US tech sector has been going through some significant volatility of late which is also likely spilling over into our local markets as well. Last week, we saw several of the US the giants report their earnings. And many, such as Amazon.com Inc (NASDAQ: AMZN), disappointed. On Friday night (our time), the tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX) fell a shocking 4.47%, led by Amazon’s painful 14.05% drop.

It’s these factors that are the most likely explanation as to why ASX tech shares are getting so hammered today. No doubt investors will be hoping things improve later in the week, but we shall have to wait and see.

The post Why are ASX tech shares having such a dire run on Monday? appeared first on The Motley Fool Australia.

More reading

• The Pilbara Minerals share price just dropped 6%. Time to pounce?
• Why is the Xero share price sinking 6% today?
• Why is the Pro Medicus share price sinking on Monday?
• What’s the outlook for ASX 200 mining shares in May?
• Up 80% in 2022, are Coronado shares heading for the ASX 200?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Pro Medicus Ltd., Tyro Payments, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd., WiseTech Global, and Xero. The Motley Fool Australia has recommended Amazon and 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 1.3% to 7,335.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 4% to $6.39. Investors have been selling Appen and other tech shares on Monday following a major selloff on the tech-focused Nasdaq index on Friday night. Not even a positive broker note out of Citi could stop Appen’s shares from sinking today. Its analysts have retained their buy rating and $9.15 price target on the company’s shares.

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price has crashed 24% to $4.20. This follows the release of a trading update which included a number of negatives. The main ones are downgrades to the top end of its earnings and broadband connections guidance for FY 2022. In respect to the former, Aussie Broadband was previously guiding to EBITDA of $27 million to $30 million. Whereas it now expects EBITDA to be $27 million to $28 million.

IGO Ltd (ASX: IGO)

The IGO share price is down almost 6% to $12.42. Investors have been selling this battery materials miner’s shares in response to the release of its quarterly update after the market close on Friday. That update revealed that the commissioning of Train 1 at Kwinana is progressing. However, it has not yet successfully produced battery grade lithium hydroxide. Management advised that the debugging process and understanding of what it needs to do to deliver quality product and consistent operations is being progressed.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down a further 3% to $3.79. This ecommerce company’s shares have been hammered over the last two trading sessions following an abject quarterly update. The team at Credit Suisse responded to its update this morning by downgrading Kogan’s shares to an underperform rating and slashing its price target by almost a third to $3.75.

The post Why Appen, Aussie Broadband, IGO, and Kogan shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Aussie Broadband share price is crashing 25% today
• These are the 10 most shorted ASX shares
• Best ASX shares to buy in May 2022
• Why Kogan, Reliance, ResMed, and Sandfire shares are dropping
• Kogan share price crashes 12% to multi-year low amid Q3 sales decline

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 Appen Ltd, Aussie Broadband Limited, and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Aussie Broadband 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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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.

To say that the first four months of 2022 have been turbulent from an investing standpoint would be an understatement. Stocks have been volatile since January and many portfolios are down significantly year to date.

But while it’s never fun to lose in the range of 10% to 15%, some investors are growing increasingly concerned over a fully-fledged, prolonged bear market. That’s when stocks fall 20% or more from a recent high.

Bear markets can be tough to endure and harder to recover from than stock market downturns that are more modest. But if you make these moves, you won’t have to sweat a bear market at all.

1. Make sure your assets are allocated appropriately

It’s one thing to have a portfolio that’s 80% stocks in your 40s or 50s. But it’s another thing to go that heavy on stocks in your mid-60s when retirement might only be a year or two away.

One of the trickiest things about bear markets is that it’s hard to predict how long they’ll last. Our most recent bear market, which happened in early 2020 on the heels of the COVID-19 outbreak, was fairly short-lived. But a bear market could last years.

If you’re nearing retirement, it’s important to keep a substantial portion of your assets outside of the stock market (such as in cash or bonds). But if retirement is decades away, you probably don’t need to make any changes to your asset allocation, even if stocks comprise the bulk of your IRA or 401(k) plan. That’s because you should, in theory, have ample time to recover from a downturn.

2. Shore up your emergency fund

Many people assume they’re doomed to lose money during a bear market. But if you leave your portfolio alone and wait for it to recover, you may not lose so much as a dollar.

That’s why it’s important to have a solid emergency fund — one that can ideally cover up to six months’ worth of essential living costs. That way, you’ll be less likely to land in a situation where you have to liquidate stocks when they’re down to access cash.

3. Stockpile some cash to invest with

Bear markets can be scary for investors, but they can also spell opportunity. Once you’ve beefed up your emergency fund, try setting aside extra cash for investing purposes.

When the stock market tumbles broadly, the value of quality stocks can drop as well. But that gives you a chance to scoop those shares up at a discount. You’ll need cash to make that happen, though, so do your best to free some up.

That said, don’t raid your emergency savings to scrounge up money to invest with. Doing so could lead to that same unwanted scenario of having to lock in losses should a need for money arise at a bad time.

Being prepared for a bear market could position you to get through one unscathed. And so rather than spend time fearing a bear market, set yourself up to get through the next one.

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

The post How worried should you be about a bear market? appeared first on The Motley Fool Australia.

More reading

• Why Appen, Aussie Broadband, IGO, and Kogan shares are sinking today
• The Pilbara Minerals share price just dropped 6%. Time to pounce?
• Why is the Xero share price sinking 6% today?
• Broker says the South32 share price is cheap at current levels
• 2 ASX shares exploding more than 100% on Monday

The Motley Fool has a disclosure policy.

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

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The S&P/ASX 200 Index (ASX: XJO) is having a pretty dire day so far this Monday. At the time of writing, the ASX 200 is down by a depressing 1.24% at just under 7,350 points. So it’s perhaps no surprise that the Pilbara Minerals Ltd (ASX: PLS) share price is also suffering.

Pilbara Minerals shares are currently down by a nasty 6.14%, sitting at $2.68. What a way to start the week.

This latest fall means that the Pilbara share price is now down by a tad over 22% over the past month. so with this latest plunge, some investors, and perhaps lithium enthusiasts, will no doubt be wondering if the Pilbara share price is in the buy zone.

Is the Pilbara Minerals share price in the buy zone today?

So let’s see if some ASX expert investors reckon it’s time to pounce on Pilbara. Stephane Andre from Alphinity and Mike Murray from Australian Ethical Investment Limited (ASX: AEF) recently spoke to Livewire Markets. Here’s what Murray had to say on Pilbara:

It’s a hold for us. We were buyers of Pilbara at around 70 cents and it’s been a wild ride. I think it fell to 15 cents and then up above $3 and now around that $2.50 level. There’s a lot to like about the position of their resource. It’s positioned reasonably well on the cost curve.

Lithium demand is growing probably in excess of 20% per annum due to EV uptake and the market in deficit. When I look at spodumene, the price is currently around that US$5,000 per tonne level. In the long run, we think that will settle somewhere between US$800 and US$1,000 per tonne. So it’s just moved a bit hard on the upside for us.

Buy, hold or sell?

So lukewarm on Pilbara shares right now from Murray and Australian Ethical. But let’s hear what Andre had to say:

[Pilbara is] a buy for me. I still really like the dynamic of lithium. I completely agree with Mike. The growth and demand are going to be significant. Some forecast six times growth between 2020 and 2030. Supply is there, but it’s going to take time to ramp up the supply. So I think there’s going to be a deficit in lithium for quite a few years. So that means elevated prices of lithium for longer.

The company is aiming to triple its production between now and the next five years. So that’s also a strong growth. We think earning surprise and there’s going to be a lot of cash flows. Capital management is also going to be featured here on this stock. So for us, earning surprise on price, volume, and capital management, it’s a buy.

So far more optimism from Andre and Alphinity. It just goes to show that even expert investors don’t always see eye to eye. But one thing’s for sure. Pilbara will be an interesting company to watch over the next 12 months.

At the current Pilbara Minerals share price, this ASX 200 lithium stock has a market capitalisation of $7.96 billion.

The post The Pilbara Minerals share price just dropped 6%. Time to pounce? appeared first on The Motley Fool Australia.

More reading

• Why is the Pro Medicus share price sinking on Monday?
• What’s the outlook for ASX 200 mining shares in May?
• Up 80% in 2022, are Coronado shares heading for the ASX 200?
• ASX 200 midday update: NAB’s AUSTRAC update, AGL downgrades guidance, Qantas takes off
• Why did the Wesfarmers share price lag the ASX 200 in April?

Motley Fool contributor Sebastian Bowen 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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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 Xero Limited (ASX: XRO) share price is heading south today despite the company not releasing any new announcements.

At the time of writing, the cloud accounting platform provider’s shares are trading down 5.93% at $90.66.

What’s happened to Xero shares?

An impressive growth story stretching back from 2012, Xero shares have tumbled since the beginning of 2022.

The company share price has fallen a whopping 35% since the beginning of the year. In contrast, the S&P/ASX 200 Index (ASX: XJO) has edged around 1.3% lower.

While the question arises of when Xero will finally bottom out, the company has remained relatively quiet on the news front. Its last financial update came in November 2021, when Xero delivered its half-year results to the market.

Despite the company posting a net loss for the period, most key metrics lifted by double digits.

Nonetheless, the S&P/ASX All Technology Index (ASX: XTX) has been pounded this year, which could be one reason why Xero shares are in the red.

The tech sector is currently down 25% year to date.

Investors will be keeping a close eye as Xero gears up to release its full-year results on 12 May.

Is the Xero share price a buy?

A couple of brokers weighed in on the company’s share price with varying price points earlier this year.

The team at Citi lowered its 12-month price target for Xero shares by 17% to $132.60 in March. While this represents a hefty premium of 46%, investors are taking the investment advice cautiously.

However, analysts at Macquarie had a more bearish tone, cutting Xero’s rating by 23% to $100 per share. This is almost in line with Macquarie’s estimates based on the current Xero share price.

Xero has a market capitalisation of roughly $13.45 billion, making it the 35th largest company on the ASX.

The post Why is the Xero share price sinking 6% today? appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 tech shares are having such a stellar end to the week
• Why the Xero share price is a buy right now: experts
• 2 ASX tech shares to buy for dirt cheap right now: experts
• 2 ASX 200 blue chip shares to buy in May: Analysts
• Top brokers name 3 ASX shares to buy next week

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 South32 Ltd (ASX: S32) share price is trading lower with the market on Monday afternoon.

At the time of writing, the mining giant’s shares are down almost 1% to $4.72.

Is the South32 share price weakness a buying opportunity?

One broker that is likely to see the weakness in the South32 share price as a buying opportunity is Citi.

In response to the company’s recent quarterly update, the broker retained its buy rating and $5.50 price target on the mining giant’s shares.

Based on the current South32 share price, this implies a potential return of 16.5% for investors over the next 12 months before dividends.

As for dividends, Citi is forecasting fully franked dividends per share of 38 cents in FY 2022 and then 39 cents in FY 2023. This means that if you include the next 12 month’s forecast dividends, the total potential return stretches to almost 25%.

What did the broker say?

While Citi wasn’t blown away with South32’s quarterly update, it saw enough in it to remain bullish.

Particularly given favourable commodity prices and the valuation of the South32 share price compared to other large cap miners. It feels this makes it the “cheapest” in the group at current levels.

The broker explained: “MarQ was reasonable albeit marginally weaker than Citi expectations. While FY22 prodn guidance was essentially unchanged, cost guidance was raised and FY22 earnings trimmed. However, FY23/24 estimates benefit from raised commodity price assumptions and we stay Buy rated. On nearer term multiples, S32 remains the cheapest of the large cap Aus mining stocks.”

All in all, this could make South32 shares one to consider if you’re looking for exposure to the resources sector during the current commodity boom.

The post Broker says the South32 share price is cheap at current levels appeared first on The Motley Fool Australia.

More reading

• Why City Chic, Coronado, South32, and Syrah shares are charging higher
• Top brokers name 3 ASX shares to buy today
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Goldman Sachs names 3 reasons why the South32 share price is a bargain buy
• 5 things to watch on the ASX 200 on Wednesday

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 Australian share market is having a pretty horrible start to the trading week so far this Monday.

At the time of writing, the All Ordinaries Index (ASX: XAO) is down by a significant 1.65% and is back under 7,600 points. But even though most ASX shares are suffering today, there are a few notable exceptions.

In fact, two ASX shares have exploded by more than 100% in value today. Let’s check out what’s going on here.

2 ASX shares going gangbusters today

East 33 Ltd (ASX: E33)

Our first ASX share to check out is East 33, a Sydney-based producer and supplier of rock oysters. No doubt shareholders will feel like the world is their oyster today, seeing as East 33 shares are up an astounding 110% in trading so far. Yes, this company closed at 4 cents per share last week, but is today fetching 8.4 cents a share at the time of writing.

The catalyst for this eye-popping move appears to be a trading update that the company released this morning.

In this update, East 33 informed investors that its results for April came in ahead of expectations. The company reported a harvest volume of “499k”, along with group revenue of $2.43 million, for the month.

Here’s some of what the company had to say about these numbers:

East 33 is a resilient business and its geographic diversification enabled harvest despite enormous disruptions due to continued rain, further its diversified sales and distribution operations continue to grow year on year.

April generated $344k of the $1.6m low season contribution being 21.5% of entire outlook to the end of September 2022. This result put East 33 significantly ahead of expectation.

So investors are evidently extremely pleased with what East 33 came up with today.

Adrabbit Ltd (ASX: RAB)

Adrabbit is our second ASX share that has exploded in value today. This software-as-a-service (SaaS) provider for businesses was priced at 2.3 cents per share at the end of last week.

But today, the company has rocketed a whopping 221% so far and is currently going for 7.4 cents per share. This seems to have been sparked by a quarterly update. This morning, Adrabbit announced some results for the quarter ending 31 March 2022.

Over this period, the company reported invoiced revenues of $67,398. It also announced the successful completion of its dual-listing on the Toronto Stock Exchange (TSX) and the completion of a US$3.25 million funding round.

So again, investors seem very happy with what the company presented today. Having said that, Adrabbit is still proceeding with its delisting from the ASX, so this company won’t be around for too much longer on our sharemarket.

The post 2 ASX shares exploding more than 100% on Monday appeared first on The Motley Fool Australia.

More reading

• 3 lessons from what Buffett didn’t say at Berkshire Hathaway’s shareholder meeting
• Why is the Pro Medicus share price sinking on Monday?
• What’s the outlook for ASX 200 mining shares in May?
• Here’s why the Aussie Broadband share price is crashing 25% today
• Own Macquarie shares? Here’s what to watch when the bank reports this week

Motley Fool contributor Sebastian Bowen 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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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.

Saturday was the second day of the 2022 New Orleans Jazz and Heritage Festival — an event of music and celebration that attracts people from all over the country. Yet there was a different and more reflective jazz festival taking place about a thousand miles northwest, at Berkshire Hathaway‘s (NYSE: BRK.A) (NYSE: BRK.B) annual shareholder meeting in Omaha.

Miles Davis said that “it’s not the notes you play, it’s the notes you don’t play”. And that feeling rang true at Berkshire’s meeting.

Despite Berkshire being up 8% on the year compared to a 13% loss for the S&P 500 and an over 20% loss for the Nasdaq Composite, there was little to no showboating from Chairman Warren Buffett or Vice Chairman Charlie Munger. Instead of bragging about the outperformance of value stocks over growth stocks, their attention was on protecting shareholder capital paired with a deep sense of responsibility to keep cash on the balance sheet and exhibit discipline during an uncertain time of high inflation and rising interest rates.

Here’s what Buffett and Munger didn’t say that spoke volumes at the 2022 Berkshire shareholder meeting.

Invest in yourself

Buffett said that the best vehicle you can invest in is yourself. “Nobody can take away from you the talent you have,” he said. “The truth is, the world will always need to do something and some people will not have skills and they will get less of the product of the society than somebody who has other skills. Sometimes that has something to do with education, but a good bit of the time it doesn’t have anything to do with education.”

It’s a theme Buffett returned to frequently, especially in his comment that “you ought to be a better person in the second half of your life than the first”. Compounding wealth isn’t just financial — Buffett seemed to imply that the best defense against inflation on the personal level is to make lifelong contributions to the world.

Speaking of which…

Invest in companies with wide moats

Buffett also may have been indicating that the best companies to own are the ones that are also exceptionally good at something and do whatever they do better than their competitors. This doesn’t always mean their stocks will go up or even outperform the market. But it does mean that over the long run, these companies are developing the kind of foundation that outlasts economic cycles and delivers long-term growth.

If we look at Berkshire’s top 10 list of public equities, it’s very clear that every single one of them, from Apple to Chevron, is a leader in their respective industry.

Can Berkshire last forever?

A writer named Charles Michael Palahniuk famously said, “We all die. The goal isn’t to live forever, the goal is to create something that will.” That seems to be the feeling that Buffett, who will turn 92 on 30 August, has right now.

Although Buffett is still sharp as a tack, no one knows when the last Buffett-led Berkshire meeting will be. When asked about his succession, Buffett didn’t focus on the inner workings of the board of directors, or the voting power of the shareholders, or even the strategy of the investment team. Rather, he talked extensively about the Berkshire culture almost as an embodiment of his values that will carry on even after he and Munger are gone.

“Berkshire is built forever. There is no finish point. We have no one thinking about if their options are vested,” Buffett said.

It could be that Buffett believes the superiority of the Berkshire culture is hidden right now because all the spotlight is on him, and that when he’s no longer in charge, folks will begin to realise why people like to work for Berkshire and why it’s a business that is so much more than just Buffett and Munger.

Life-changing wealth

The individual investor can take away the importance of building an everlasting portfolio that will continue to grow even after we pass. Buffett is big on the power of compound interest and routine saving. In fact, by starting with $0 and investing $10,000 per year into a retirement account for 50 years at a compound annual growth rate of 10%, an investor would end up with $11.64 million. This long-term mindset can lead to generational wealth using a relatively attainable savings plan.

As for Berkshire Hathaway, it’s likely that Buffett’s leadership and investing philosophies have the staying power to transcend his lifetime too. For that reason, Buffett seems less concerned with the performance of Berkshire versus the S&P 500 into the future, and much more focused on ensuring his company culture remains intact.

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

The post 3 lessons from what Buffett didn’t say at Berkshire Hathaway’s shareholder meeting appeared first on The Motley Fool Australia.

More reading

• Warren Buffett talks cash and more at Berkshire Hathaway’s annual meeting
• Warren Buffett just bought $4 billion of HP stock, sending the share price soaring

Daniel Foelber 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 Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Pro Medicus Ltd (ASX: PME) share price is plummeting today despite no new announcements from the company.

At the time of writing, the health imaging company’s shares are down a sizeable 7.2% to $44.06 after recovering from an intraday low of $43.05. That’s 9.3% lower.

What’s dragging Pro Medicus shares lower?

A catalyst for the Pro Medicus share price falling deep in the red today has come from broader market weakness.

The S&P/ASX 200 Index (ASX: XJO) is tumbling 1.31% lower to 7,337 points following Wall Street’s heavy losses last week.

In particular, the tech-focused Nasdaq fell 4.2% on Friday, registering its lowest closing levels in more than 12 months.

The selling pressure led to the index sinking 13.26% in April, its worst month since October 2008. This was brought on by an underwhelming performance from the tech titans such as Amazon, Netflix, and Meta Platforms.

While Pro Medicus is not directly related to the above companies, it does operate in the United States.

Furthermore, with an extremely high price-to-earnings (P/E) ratio of 118.95, this is bound to cause a jerk reaction.

Investors clearly are putting a lot of hope on Pro Medicus further expanding in North America. However, with the current market volatility, the company’s shares are the first to be hit hard.

About the Pro Medicus share price

Over the last 12 months, the Pro Medicus share price has lost around 7% with year to date down 30%.

The company’s shares reached a 2022 high of $63.12 on 4 January, before plunging 30% in the weeks following.

Since then, the company’s shares have moved in circles.

Based on valuation grounds, Pro Medicus commands a market capitalisation of around $4.6 billion.

The post Why is the Pro Medicus share price sinking on Monday? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX 200 mining shares in May?
• Up 80% in 2022, are Coronado shares heading for the ASX 200?
• ASX 200 midday update: NAB’s AUSTRAC update, AGL downgrades guidance, Qantas takes off
• Why did the Wesfarmers share price lag the ASX 200 in April?
• Why did the Bank of Queensland share price tank 7% in April?

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 positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. 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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We’re already in May 2022. What is the outlook for S&P/ASX 200 Index (ASX: XJO) mining shares this month and beyond?

Mining businesses can have an important influence on both the ASX 200 and the Australian economy because of how big they are.

The ASX 200 has plenty of large miners including BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

It can be almost impossible to know what a share price will do in any given week, month or even year. But, analysts and brokers can make predictions about things like commodity prices and potential profit generation.

Analyst thoughts on ASX 200 mining shares

The analysts at Macquarie think that worries about the Chinese economy because of COVID-19 impacts could be an opportunity for investors to buy resource companies that have suffered a sell-off, according to reporting by The Australian.

Experts from Macquarie also believe that the Russian invasion of Ukraine will lead to bigger investments in ‘deglobalisation’, decarbonisation and defence. The experts believe that this should help commodity demand. Russian resources may be disrupted for some time after the actual war is over.

The positive outlook for commodities could bring institutional investors to the ASX looking for commodity opportunities, such as Capital Group.

The Australian quoted Bell Potter’s head of institutional sales and trading, Richard Coppleson, who said:

I suspect there is a wall of buyers of resource stocks on any pullbacks. Local institutions were I think looking to buy – most have held back and were waiting for more, just waiting until the dust settled – while Capital Group pounced hard just when it all looked dire and have done well.

Macquarie is expecting that China will expand its stimulus as the lockdowns end, with this giving support to commodities and ASX 200 mining shares.

The expert thinks that if it’s right about the outlook for resources, then the respective miners should “outperform” even in an economic slowdown, with support from China helping that.

The Australian also noted that outperformance by resource shares could also happen as interest rates rise, hurting valuations in other sectors like the technology industry.

Macquarie ratings on ASX 200 mining shares

Macquarie has an ‘outperform’ rating on the BHP share price, with a price target of $60.

The broker has an ‘outperform’ rating on the Rio Tinto share price, with a price target of $140.

The rating on Fortescue’s share price is ‘neutral’, with a price target of $20.

The Mineral Resources Limited (ASX: MIN) share price rating is ‘outperform’, with a price target of $85.

The post What’s the outlook for ASX 200 mining shares in May? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group 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 recommended Macquarie Group 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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