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The Fortescue Metals Group Limited (ASX: FMG) dividend has been significantly slashed following the company’s FY22 half-year results today.

At the time of writing, the mining giant’s shares are down 1.95% to $21.17 apiece.

Below, we take a look at the main drivers behind the company’s decision to reduce its interim dividend.

Fortescue shares slip following first-half results

The release of Fortescue’s financial scorecard has prompted investors to sell down the company’s shares.

For the six months ending 31 December, Fortescue exported a half-year record of 93.1 million tonnes of iron ore, up 3% on H1 FY21 volumes. This was supported by the integration of the Eliwana mine and rail project into the company’s value chain.

However, a reduction in demand and declining iron ore prices, combined with increased supply, impacted the price the company could charge for its product. As a result, Fortescue reported average revenue of US$96 per dry metric tonne (dmt), down from US$114/dmt in H1 FY21.

Total revenue came to US$8.1 billion, a 13% slump caused by large discounts applied to its lower grade ore. The company received around 70% of the benchmark price for iron ore given when sold to Chinese steel mills.

This led to the board declaring a decreased interim dividend for the back-end of the year.

As such, eligible investors will receive a fully franked dividend of 86 cents per share, down almost 42% from H1 FY21. The $973 million payout was broadly in line with analyst estimates, which had forecast a US$2.7 billion half-year profit along with an 85.8 cents interim dividend.

This means the market was pretty much already expecting a much lower dividend given the external factors impacting Fortescue’s results.

Last year, the mining giant declared a record interim dividend of $1.47 per share on the back of several positive factors. These included a robust operating cash flow environment, a confident outlook for the second half of FY21, and a strong balance sheet.

Fortescue today stated it generated earnings per share (EPS) of 90.3 US cents in H1 FY22. This compares with 132.7 US cents EPS in the prior year.

The latest interim dividend represents a 70% payout of the first half net profit after tax (NPAT). This is in line with the company’s policy of maintaining a payout ratio between 50% and 80% of full-year NPAT.

Fortescue dividend key dates

Fortescue provided the distribution amount and payment dates of its interim dividend for the 2022 financial year. Here’s a summary of the important dates Fortescue shareholders will need to know.

Ex-dividend date

The ex-dividend date will be 28 February 2022.

This is the date where investors must own Fortescue shares. Should you sell your Fortescue holdings before the ex-dividend date, you will not receive the upcoming dividend.

However, if you sell your shares on or after this date, you will still receive the dividend. Typically on the ex-dividend rate, the share price falls in proportion to the dividend yield.

Payment date

The payment date for Fortescue’s dividend will be 30 March 2022.

This is when shareholders can expect to see their nominated accounts credited with the allocated interim dividend payment.

The post Why has the Fortescue (ASX:FMG) dividend tumbled 40%? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• Fortescue (ASX:FMG) share price slips on FY22 half-year results
• 5 things to watch on the ASX 200 on Wednesday
• Why Adore Beauty, Beach, Fortescue, and Praemium shares are falling
• Hunger Games? Here’s why more Fortescue (ASX:FMG) execs are calling time out on the miner

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 Bruce Jackson.

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The Bitcoin (CRYPTO: BTC) price is up just over 1% in the past 24 hours.

At time of writing, the world’s biggest crypto by market cap is trading for US$44,129 (AU$61,762).

Crypto investors have been keeping a close eye on the Bitcoin price since the token rocketed to fresh all-time highs of US$68,790 on 10 November.

For a while it seemed like it was mostly downhill from there.

On 24 January the Bitcoin price dropped as low as US$33,184.

With these kinds of outsized gains and losses, eToro’s market analyst and crypto expert Simon Peters analysed a key metric to help decipher what investors can expect next.

How this key metric bodes well for the Bitcoin price

To get a better handle on where Bitcoin could be heading next, Peters looked at the hash rate, sourcing data from Blockchain.com.

If you’re not familiar with the term, the hash rate measures the number of computers actively engaged in mining Bitcoin.

Importantly, this has just reached a record high.

According to Peters:

The crypto asset’s hash rate has been climbing steadily since July 2021 and has faltered little despite recent falls in the Bitcoin price. The greater stability in the hash rate is a positive signal that the recent downturn is related more closely to temporary uncertainty rather than long-term commitment from important players such as miners.

 What can crypto investors expect next?

“Hash rate data tends to lag the bitcoin price so we may see some softness from the current all-time high,” Peters said. “But the Bitcoin price is on track to recover ground lost in January.”

Peters added, “The hash rate’s position at such high levels is indicative of more participants than ever in the network, something that long-term investors will take significant confidence from.”

The post How this key metric bodes well for the Bitcoin price appeared first on The Motley Fool Australia.

More reading

• Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today?
• Ethereum and Bitcoin price in focus as world’s biggest asset manager eyes cryptos
• How a war in Ukraine could send the Bitcoin price skyrocketing
• Here’s why these deep-pocketed investors are eyeing green Bitcoin
• Is this ‘impediment’ holding back the Bitcoin price?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. The Motley Fool Australia owns shares of and recommends Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and storming higher. At the time of writing, the benchmark index is up 0.7% to 7,260.2 points.

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

CSL Limited (ASX: CSL)

The CSL share price has jumped 7.5% to $261.14. This follows the release of the biotherapeutics company’s half year results. CSL reported a 5.3% increase in revenue to US$6,041 million but a 5% constant currency decline in net profit after tax to US$1,722 million. However, an upgrade to its guidance for FY 2022 has gone down well with the market.

Liontown Resources Limited (ASX: LTR)

The Liontown share price has rocketed 18% higher to $1.64. Investors have been buying this lithium developer’s shares after it announced a five-year deal with Tesla. The auto giant has agreed to purchase 100,000 dry metric tonnes (dmt) lithium spodumene concentrate in year one and then 150,000 dmt per annum in the following four years from the Kathleen Valley Lithium Project in Western Australia.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is up 6% to $1.30. Thanks largely to strong growth in North America, this aerial imagery technology company reported a 28% increase in annual contract value (ACV) to $147.7 million during the first half. This led to Nearmap revealing that it now expects to hit the top end of its FY 2022 ACV guidance.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price has jumped 12% to $11.81. This follows the release of the wine giant’s half year results. While Treasury Wine reported a 10.1% decline in net sales revenue to $1,267 million and a 6.7% decline in EBITS to $262.4 million, management spoke positively about the future. It has advised that the company is now shifting its focus from “recovery and restructuring” to one of “growth and innovation.”

The post Why CSL, Liontown, Nearmap, and Treasury Wine shares are storming higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• Liontown (ASX:LTR) share price rockets 16% today on Tesla lithium deal
• Cheers! Treasury Wine (ASX:TWE) share price jumps 13% on half year results
• Nearmap (ASX:NEA) share price jumps 8% on ‘exceptional result’
• CSL (ASX:CSL) delivers US$1.7bn half year profit and tips plasma collection rebound

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. owns and has recommended CSL Ltd. and Nearmap Ltd. The Motley Fool Australia owns and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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One ASX All Ordinaries lithium share is having a stellar day on the market today.

The AVZ Minerals Ltd (ASX: AVZ) share price is trading at 82.3 cents at the time of writing, a 12% gain. In earlier trade, it surged nearly 18%.

Let’s take a look at what’s attracting investor attention today.

What did this lithium explorer announce today?

AVZ Minerals revealed it has expedited its agreement with Suzhou CATH Energy Technologies (CATH) on a global joint lithium project.

The Manono Lithium and Tin Project is a lithium development in the Democratic Republic of Congo. It contains lithium pegmatites with a 13km strike length.

CATH is a private investment entity owned by Pei Zhenhua and Contemporary Amperex Technology Co. Limited. AVZ said both have a huge influence on the lithium-ion battery industry.

The company will pay US$240 million in cash for a 24% equity interest in the venture. CATH will also contribute its pro-rata portion of funding towards the project. This was reported to the market in September.

As part of the news announced today, the companies have agreed to waive the following conditions.

• The mining licence for the Manono Project being granted to Dathcom Mining SA
• Dathcom and the DRC government entering into a collaboration development agreement
• The Dathcom board and shareholders making a final investment decision and approving the transaction

Management comment

Commenting on the venture, managing director Nigel Ferguson said:

Finalising our agreement with CATH provides certainty of funding to progress development of the Manono Project, pending the award of our Mining Licence and Collaboration Development Agreement from the Democratic Republic of Congo Government.

We are in close consultation with the DRC Government authorities that are undertaking the Mining Licence assessment and are confident of delivering a favourable outcome for all stakeholders – most importantly the people of the DRC and our shareholders.

AVZ Minerals Ltd share price summary

The AVZ Minerals share price has surged 300% in the past year and almost 6% year to date.

However, in the past month, the company’s shares have dropped more than 11%.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.

AVZ Minerals has a market capitalisation of about $2.8 billion based on today’s share price.

The post Here’s why this ASX All Ordinaries lithium share is surging 13% today appeared first on The Motley Fool Australia.

More reading

• Why AMP, AVZ, Megaport, and NAB shares are pushing higher
• Here are the top 10 ASX shares today
• Why AVZ, Kogan, Panoramic, and Redbubble shares are sinking

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 Bruce Jackson.

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Shares in open hotel commerce platform SiteMinder Ltd (ASX: SDR) are sliding into the red today. It comes as the company releases its results for the half year ended 31 December 2021.

At the time of writing, the SiteMinder share price is trading more than 3% down at $5.82 as investors respond poorly to the company’s mixed results.

SiteMinder shares slip on revenue gains with underlying net loss

Key investment takeouts from the company’s earnings result include:

• Total revenue was up 9% on H1FY21 (10.4% in constant currency (cc)) to $55 million
• Global customer base increased 6% during the half, with annualised property growth in the Americas up 15%
• Annualised recurring revenue (ARR) grew 13.5% (cc) from H1FY21 to $111 million
• Monthly average revenue per user (ARPU) grew 7.7% (cc) on H1FY21 to $280
• Underlying free cash outflow of $16.6 million (30% of revenue) with available cash and term deposits of $113 million
• Underlying net loss was $18.6 million reflecting investments to reaccelerate
• Reported net loss was $87 million

What else happened this period for SiteMinder?

This is the first half-yearly report for the company as an ASX share since its initial public offering (IPO) in November last year.

Annualised recurring revenue (ARR) at the end of H1FY22 was $111 million, growing 13.5% in constant currency terms from the same time last year. This result outpaced revenue growth and reflected “the acceleration of SiteMinder’s business”.

The company’s customer property count also increased from 32,800 to 33,400 over the quarter. This led annualised property growth to accelerate from 5% in Q1FY22 to 8% in Q2FY22.

It also saw some relief from the recovery in global travel to its transaction revenues. Revenue saw a rebound from the prior year.

“Around a third or 32% of customers have adopted an average of one transactional product – up 9 percentage points from the prior year,” the company said.

Despite growth at the top, SiteMinder reported a net loss for the period of $87 million. This was underpinned by a one-off cost of $61.8 million “relating to the higher revaluation of preference shares while a private company.”

Management commentary

SiteMinder CEO and managing director Sankar Narayan responded to the announcement:

In line with the continued reopening of travel markets and the rebuilding of our go-to-market capacity, SiteMinder’s growth is accelerating once again and our performance over the past six months stands as a testament to our ability to withstand the ongoing challenges presented by travel globally. We continue to exhibit our resilience through growth in total revenue and our subscription base, as well as ARR, ARPU and improved unit economics. Our performance also reflects the scale and breadth of our global business, with both the Americas and EMEA driving Company growth, and we are hopeful that the Asia Pacific will continue to reopen during 2022, to provide additional strength to our growth recovery.

What’s next for SiteMinder?

The release notes that SiteMinder is targeting pre-COVID revenue growth rates of 31% (achieved from FY17 to FY19).

This would place the company on the same trajectory it was on before the pandemic hit, ceteris paribus.

Although, “realisation of this target will depend on many factors outside of the Company’s control, including the substantial abatement of COVID-19 related influences on the accommodation and travel industry.”

SiteMinder share price snapshot

The SiteMinder share price is down 13% this year to date and has fallen nearly 1% into the red over the past month of trading.

Time will tell in which direction this relatively new ASX share will head as we roll through 2022.

The post Recurring revenue or recurring losses? This ASX share just sunk on mixed earnings appeared first on The Motley Fool Australia.

More reading

• Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today?
• 2 ASX small-cap shares breaking multi-year highs today
• Top brokers name 3 ASX shares to buy today
• Netwealth (ASX:NWL) share price craters 14% on mixed half-year results
• Is now the time to buy the dip in ASX 200 shares?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended SiteMinder Limited. 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 Bruce Jackson.

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This Wednesday’s trading session has been a positive one overall for ASX shares. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up a robust 0.88%. But that’s nothing compared to the BetaShares Crypto Innovators ETF (ASX: CRYP).

CRYP units are presently enjoying a very pleasing 4.82% bounce and are sitting at $6.53 each. So what could be behind this ETF’s very pleasant day so far?

Well, as a start, cryptocurrencies have enjoyed some very good gains recently. Over the past 48 hours, crypto flagbearer Bitcoin (CRYPTO: BTC) has appreciated by roughly 5.5%. The second-largest cryptocurrency Ethereum (CRYPTO: ETH) has rocketed more than 10% over the same period.

So this has obviously provided a strong foundation for a crypto-based ETF like BetaShares Crypto Innovators.

But let’s take a look at how the CRYP ETF’s underlying holdings have been performing this week as well. After all, an ETF is only worth the sum of its parts, whatever they may be.

CRYP ETF surges after rally in Bitcoin, cryptocurrencies

So the BetaShares Crypto Innovators ETF’s top holding is currently Coinbase Global Inc (NASDAQ: COIN), with a hefty 10.6% weighting in the fund. Its next largest holding is Silvergate Capital Corp (NYSE: SI) at 10.4%, followed by Microstrategy Incorporated (NASDAQ: MSTR) at 9.3%.

Last night (our time), Coinbase shares surged more than 7% on the US markets, possibly in response to the movements of cryptocurrencies like Bitcoin and Ethereum that we discussed earlier. Silvergate Capital did even better, rising by 10.06%. And Microstrategy shares enjoyed a 6.8% pop.

So this extraordinary strength across most of CRYP’s underlying portfolio is probably behind the big valuation jump today.

But even so, investors in this ASX ETF have still struggled of late. CRYP units remain down by more than 16% in 2022 so far, and by more than 40% since this ETF was listed on the ASX back in November last year.

The BetaShares Crypto Innovators ETF charges a management fee of 0.67% per annum.

The post Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today? appeared first on The Motley Fool Australia.

More reading

• Ethereum and Bitcoin price in focus as world’s biggest asset manager eyes cryptos
• How a war in Ukraine could send the Bitcoin price skyrocketing
• 3 exciting ETFs for ASX investors next week
• Here’s why these deep-pocketed investors are eyeing green Bitcoin
• Is this ‘impediment’ holding back the Bitcoin price?

Motley Fool contributor Sebastian Bowen owns Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF, Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s an exciting day for owners of these ASX small-cap shares – they’re hitting their highest share price in years.

Shares in both Monash IVF Group Ltd (ASX: MVF) and Maggie Beer Holdings Ltd (ASX: MBH) are revelling in reporting season.

The Monash IVF share price has hit its highest point since August 2019 ­– surging to $1.135 in intraday trade.

Meanwhile, the Maggie Beer share price reached a new all-time high of 61 cents earlier today on the back of the company’s half-year earnings.

Let’s take a closer look at what’s got small-cap enthusiasts excited about these ASX shares.

What’s boosting the share price of these ASX small-caps today?

First off, Maggie Beer’s surge follows some tasty figures in the company’s half-year earnings.

Over the course of the 6 months ended 31 December 2021, Maggie Beer’s sales increased 113% compared to those of the previous first half, reaching $64.5 million.

Meanwhile, its trading earnings before interest, tax, depreciation, and amortisation (EBITDA) soared 438% to $9.8 million.

The company also broke even after reporting a net profit after tax (NPAT) of $5.5 million.

Maggie Beer’s first half of financial year 2022 was bolstered by its recent acquisition of Hampers & Gifts Australia.

While the Maggie Beer share price rose 3.3% earlier today, it is now at 60 cents, up 1.69%.

As Maggie Beer’s stock was surging, that of Monash IVF was also up despite no word from the reproductive services provider.

However, the market might be anticipating big things from the company’s own first-half earnings. They’re set to drop tomorrow.

Its share price has also come off its multi-year high this afternoon. It’s currently trading at $1.12 – down from its intraday high of $1.135.

The post 2 ASX small-cap shares breaking multi-year highs today appeared first on The Motley Fool Australia.

More reading

• The Monash IVF (ASX:MVF) share price is gaining 6% today. Here’s why

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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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 ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Allkem Ltd (ASX: AKE)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this lithium producer’s shares to $14.00. Citi has revised its earnings estimates higher for Allkem. This follows a big increase to the broker’s lithium price forecasts due to demand outstripping supply for the battery making ingredient. The Allkem share price is trading at $9.41 on Wednesday.

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this mining giant’s shares to $54.00. This follows the release of BHP’s half year results, which were well-ahead of the broker’s expectations. And with spot commodity prices still at high levels, it feels more of the same could be coming in the second half. Macquarie also highlights that the Big Australian’s new debt target range provides scope for M&A activity or increased capital returns. The BHP share price is fetching $47.11 today.

JB Hi-Fi Limited (ASX: JBH)

Analysts at Credit Suisse have retained their outperform rating and increased their price target on this retail giant’s shares to $60.27. In response to its trading update for January and share buyback, Credit Suisse has lifted its earnings estimates. Outside this, the broker likes JB Hi-Fi due to its exposure to the work-from-home trend and improvements from The Good Guys business. The JB Hi-Fi share price is trading at $53.86 on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• BHP’s stunning dividend, rates to rise, energy falls. Scott Phillips on Nine’s Late News
• Is it a buy? Top brokers rate BHP (ASX:BHP) share price after solid earnings
• Top fundie says these blue chip ASX shares are a buy
• Is the JB Hi-Fi (ASX:JBH) share price in the buy zone after its results?
• Why Dexus, JB Hi-Fi, Seek, and Sims shares are climbing today

Motley Fool contributor James Mickleboro owns Orocobre 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 Bruce Jackson.

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The Netwealth Group Ltd (ASX: NWL) share price is carrying a heavy weight on its shoulders today after the financial services platform provider released its half-year report.

In afternoon trading, the Netwealth share price is lingering 14% below yesterday’s closing price of $14.85. It is currently trading at $12.79, down 13.87% for the day so far.

Earlier in the day, Netwealth shares reached an intraday low of $12.20, representing a descent of 17.8%.

Netwealth share price feels the heat on mixed first-half result

• Revenue up 17% from prior corresponding period (pcp) to $84.7 million
• Total funds under administration (FUA) of $56.7 billion, increasing 46% pcp
• Record net FUA inflows of $7.6 billion, representing an increase of 71%
• Record underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $43.8 million, up 7%
• Statutory net profit after tax (NPAT) relatively flat at $27.1 million, down 1.8%
• Interim fully franked dividend declared of 10 cents per share, up 10% pcp.

What else happened in the first half?

Despite the disappointment reflected in the Netwealth share price today, the first half was a period of growth in many ways for the company.

According to the release, clients on Netwealth’s platforms increased by 21.4% to 107,103. In the process, its market share increased to 5.2% at the end of September 2021 — rising from 4.1% a year prior.

The company’s funds under management (FUM) also experienced solid growth during the first half. Specifically, Netwealth landed an additional $17.9 billion in funds, taking the total to $56.7 billion, an increase of 46%.

However, beefed-up funds and higher revenue did not make it to the bottom line. Instead, $31 million in employee benefits chewed up the bulk of Netwealth’s elevated top-line income.

The 32% rise in employee benefits is a result of the company’s investment in people. Netwealth grew its team by 86 people to a total of 457. As part of this, a substantial number of those added were dedicated to its IT team.

What’s next?

Moving forward, Netwealth expects growth to continue to accelerate as the industry further consolidates. Notably, Netwealth has been acting as a consolidating force in recent times.

In November 2021, platform rival, Praemium (ASX: PPS) received a non-binding proposal from Netwealth. However, the board of Praemium knocked it back — a move that saw the Netwealth share price sink.

Any lift in interest rates by the Reserve Bank of Australia (RBA) is also being considered a positive outcome for Netwealth. Margins would likely increase above the current 105 basis points if the RBA moved the cash rate above 50 basis points in March. The current cash rate is 0.1%.

Finally, the financial platform expects its forecasted FUA net inflow to exceed $13.5 billion.

Netwealth share price snapshot

In recent times, ASX investors appear unconvinced by the potential in the Netwealth share price. Much like other financial platform peers, shares in the 23-year-old company have fallen over the past year.

Compared to the 5% return delivered by the S&P/ASX 200 Index (ASX: XJO), the Netwealth share price is down 28.6% in the past 12 months.

The majority of this value destruction has occurred in 2022, after a volatile ride throughout 2021.

The post Netwealth (ASX:NWL) share price craters 14% on mixed half-year results appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• 3 ‘champion stocks’ for ASX investors in 2022
• Netwealth (ASX:NWL) share price lifts on record net inflows of $3.6bn
• ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netwealth. The Motley Fool Australia owns and has recommended Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is edging higher today, up 0.57% in afternoon trade, continuing February’s rebound.

But ASX 200 shares, taken together, remain down 4.5% in 2022.

The local and global equity markets took a big hit in January as investors mulled the impact of looming interest rate rises, both in the United States and here at home.

The US Federal Reserve is widely expected to raise its benchmark rate at least 5 times this year from the current record low of 0.25%.

The Reserve Bank of Australia (RBA) has signalled a more dovish path. But most analysts are predicting the central bank will also be raising the cash rate from the all-time low of 0.10% later this year.

Commonwealth Bank of Australia (ASX: CBA) economists now expect the first RBA hike to come in June.

Then there are the simmering tensions on the Ukraine border. Russian forces remain positioned for a potential invasion despite pulling back some armoured units. Another recent headwind for ASX 200 shares.

With that in mind, is now the time to buy the dip?

Is now the time to buy the dip in ASX 200 shares?

Timing the market is no easy feat, to say the least.

But investors who are eyeing ASX 200 shares following the recent pullback might be interested to hear US investment bank JP Morgan’s bullish outlook for global share markets.

JP Morgan’s latest global asset allocation report was spearheaded by the company’s co-head of global research, Marko Kolanovic.

According to Kolanovic (quoted by The Australian):

Markets have been volatile recently and sentiment dour as investors grapple with monetary policy normalisation and geopolitical risks.

However, we believe risk asset markets have mostly adjusted to monetary policy shifts by now, short-term rates markets have likely moved too far versus what the central banks will ultimately deliver in hikes this year, and a China policy pivot can offset a good part of developed markets’ central bank tightening impact.

While a shooting war between Russia and Ukraine remains a very real risk, Kolanovic said if this eventuated it “would likely prompt a dovish reassessment by central banks” and the impact on global markets, and ASX 200 shares, should be “limited”.

“We expect risky asset markets to rebound as they digest these risks and sentiment improves, aided by inflows from systematic investors and corporate buybacks,” he said.

Advantage commodities

As for how investors in ASX 200 shares might want to position themselves, Kolanovic – addressing global equity markets – said (quoted by The Australian):

We continue to favour value, cyclical and higher beta market segments given their still cheap valuations and light positioning, and since they are beneficiaries of rising bond yields and higher commodity prices. We also retain our commodities overweight, focused on energy, given our supercycle thesis and geopolitical risk asymmetry.

Even as central bank hawkishness has ramped up, with market assumptions perhaps having gone too far in some cases, the silver lining to the recent pain is that equities are better equipped to handle it going forward.

Then there’s the pandemic recovery bounceback coupled with strong employment conditions in the US, Australia, and many developed nations.

JP Morgan’s analysts forecast a “strong cyclical recovery” in 2022 with borders reopening, releasing pent-up demand. The Australian international border will open on February 21.

“Bearish sentiment seems overdone as the conditions for ‘late cycle’ or recession are not met,” Kolanovic said. “Even as inflation has dented sentiment, ultimately the consumer is healthy given the strong jobs market.”

If JP Morgan has this one right, leading ASX 200 shares could enjoy some healthy tailwinds in the months ahead.

The post Is now the time to buy the dip in ASX 200 shares? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Bruce Jackson.

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