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The ASX 200 retail sector is not normally one that is bandied about with the same reverence as others when it comes to providing high and consistent dividend income. When investors think of dividends, the most likely sectors that spring to mind might be banking shares. Or perhaps mining shares.

But retail is often regarded as perhaps too cyclical or volatile to provide high yielding ASX shares for an income portfolio. This attitude might be somewhat misguided, as we’ll soon see. So here are 3 ASX retail shares that currently offer extremely robust dividend yields as it stands today.

3 ASX retail shares offering dividend yields over 5% today

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is our first ASX retail share to check out. Most investors would probably be familiar with the vivid-yellow storefronts of JB. Originally a hi-fi retailer, JB has expanded over the years to offer everything from vinyl records and movies to refrigerators and televisions.

JB paid out two dividends in 2021. Those were an interim payment of $1.80 per share, and a final dividend of $1.07 per share. That total of $2.87 per share was the largest annual dividend JB has ever paid. These equate to a trailing yield of 6.03%, or 8.61% grossed-up with JB’s full franking.

Adairs Ltd (ASX: ADH)

Adairs is another ASX 200 retail share that has had a lot to offer dividend investors over the past year. Many Aussies would know Adairs from the homewares stores that are a common sight across the shopping centres of this country. But the company also has a robust online business that served it very well during the lockdowns of the past 2 years.

Adairs paid out two dividends last year, an interim payment of 13 cents per share, and a final dividend of 10 cents per share. Again, that total of 23 cents per share was a record breaker for the company. On current pricing, that gives Adairs a trailing yield of 6.01%, or 8.59% grossed-up with full franking.

Dusk Group Ltd (ASX: DSK)

Candle and fragrance seller Dusk is our final retail share worth a look today for income investors. As with the other two companies on this list, Dusk has managed to navigate the past two years reasonably well witht the help of its online offerings. Its 2021 dividends totalled 25 cents per share. That gives Dusk a trailing yield of 7.09% on current pricing, the highest on this list.

What’s more, Dusk’s 2021 dividends also came with full franking, meaning this already-high yield grosses-up to a hearty 10.13% with the added benefits of franking credits.

The post These 3 ASX retail shares have grossed-up dividend yields over 8% right now appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares with fully franked yields
• Top brokers name 3 ASX shares to buy today
• 2 ASX dividend shares with large yields and consistent payouts
• Here are the top 10 ASX shares today
• Why Allkem, BrainChip, Data#3, and JB Hi-Fi shares are charging higher

Motley Fool contributor Sebastian Bowen owns ADAIRS FPO and Dusk Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Dusk Group 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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Key points

• The American Rare Earths share price is plunging on the back of the explorer’s latest quarterly activities report
• The company yesterday responded to an ASX price inquiry, putting recent trading movements down to “editorial coverage” of the sector
• Shares rocketed more than 126% from 13-20 January and are up more than 250% over the past 12 months

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The American Rare Earths Ltd (ASX: ARR) share price has plummeted more than 9% during afternoon trading today after the Australian exploration company released its quarterly activities update this morning. The report comes after the company responded to an ASX price inquiry yesterday afternoon.

At the time of writing, its shares are swapping hands for 39 cents, a fall of 9.3% on yesterday’s closing price.

However, despite today’s plunge, the American Rare Earths share price is still up 263% over the past 12 months.

So, what’s going on? Let’s take a closer look…

American Rare Earths quarterly report

Today, American Rare Earths reported the following activities for the quarter ending December 2021:

• Progression of its La Paz Project operations in North America (NA)
• Maiden drill finalised at Halleck Creek Project (NA), which has revealed potentially more resources than La Paz
• Permits for Halleck Creek have been approved, drilling is expected to commence in the second quarter of 2022
• A five-year $3 million promissory note with Cobalt Blue Holdings Ltd (ASX: COB)
• Incurred exploration expenditure of $313,370
• A cash position of $8.16 million as of 31 December
• A capital raise of $5.7 million with Fidelity International Limited achieved in December
• Appointments of new executive and non-executive leaders to the company

Looking forward to the next quarter, the explorer is aiming to “create the next major rare earth and critical minerals business” and to “restore the supply chain” of these materials to the US.

American Rare Earths responds to ASX

Yesterday afternoon, American Rare Earths responded to an ASX inquiry into the securities’ recent trading activity.

For reference, the American Rare Earths share price has increased by more than 105% since 13 January.

However, the explorer declared it was not aware of any information unannounced to the market which could have explained this massive price movement.

Instead, it cited “an increase in editorial coverage regarding the rare earths market in the market segments” in which the company operates.

The explorer added that reporting on the sector had increased since a Restoring Essential Energy and Security Holdings Onshore for Rare Earths Act of 2022 (REEShore) bipartisan legislative bill was introduced to the Senate of the United States.

The REEShore Act would restrict purchases of rare earths from China and encourage the extraction and processing of rare earth metals in the United States.

The increase in coverage could be a factor regarding increasing market confidence in our US based rare earths projects at La Paz, AZ and Halleck Creek, WY.

American Rare Earths share price snapshot

Between January and August last year, the American Rare Earths share price was relatively steady, sitting around 9 to 10 cents a share.

It then experienced an 8% jump back in August, after the company announced the testing of surface samples at its La Paz project.

In the last week, the explorer saw its sharpest rise of the year, increasing by around 105%.

The explorer currently has a market capitalisation of around $150 million.

The post American Rare Earths (ASX:ARR) share price slumps 9% on quarterly update appeared first on The Motley Fool Australia.

More reading

• Why are BrainChip (ASX:BRN) shares smashing ASX 200 trading volumes today?
• Could the ASX 200 be poised for a historic crash?
• Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today
• Zip (ASX:Z1P) share price sinks 8% to 52-week low after brokers weigh in on its Q2 update
• 3 things I wish I’d known before I started investing

Motley Fool contributor Alice de Bruin 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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It certainly hasn’t been a good day for BrainChip Holdings Ltd (ASX: BRN) shares. For one, the BrainChip share price is currently down by a nasty 12.34% so far this Friday. At the time of writing, BRN shares are sitting at $1.74 each. That puts it a depressing 25.6% away from the record high of $2.34 a share that we saw just earlier this week.

What’s more, the steep share price drop has also arguably driven this company to the top of the trading volume charts today, in the process beating out several far larger ASX 200 shares.

BrainChip shares top the ASX 200 on trading volume charts

According to investing.com, the S&P/ASX 200 Index (ASX: XJO) shares currently topping today’s volume charts (at the time of writing) are as follows:

• Telstra Corporation Ltd (ASX: TLS), with 18.15 million shares traded
• Pilbara Minerals Ltd (ASX: PLS), with 19.66 million shares traded
• Whitehaven Coal Ltd (ASX: WHC), with 20.8 million shares traded

But BrainChip has absolutely demolished these ASX 200 shares in terms of trading volumes thus far today. A whopping 60.05 million BrainChip shares have been bought and sold this Friday at the time of writing, almost triple that of Whitehaven Coal, the next most-traded ASX share of the day.

As to why the BrainChip share price has lost so much of its value, the answer is far less clear. There has been no news or announcements out of the artificial intelligence technology company today.

As my Fool colleague James commented earlier this Friday, “this appears to have been driven by profit-taking after some very strong gains in recent weeks… Investors may also be questioning whether a company with such little revenue warrants a valuation of over $3.5 billion”.

This makes sense. Even though the company has given back double-digits today, it’s still up by more than 150% in January alone. It’s also up by more than 350% since early October last year.

After gains like these in such a short space of time, many investors can be tempted to take profits off the table. That might explain why BrainChip shares are smashing the other ASX 200 companies today in terms of raw trading volume.

At the current BrainChip share price, this company has a market capitalisation of $3.4 billion.

The post Why are BrainChip (ASX:BRN) shares smashing ASX 200 trading volumes today? appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, GrainCorp, Redbubble, and Zip shares are dropping today
• Why did the BrainChip (ASX:BRN) share price have such a stellar year in 2021?
• Why BrainChip, Harvey Norman, HUB24, and Lake Resources shares are pushing higher
• Could BrainChip (ASX:BRN) crack into the ASX 200? Here’s what it takes
• BrainChip (ASX:BRN) share price leaps to all-time high. Here’s why

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 owns and has recommended Telstra Corporation 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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Key points

• ASX 200 down 5.9% year-to-date
• Nasdaq down 10.3% year-to-date
• Bitcoin down 14.4% year-to-date
• Jeremy Grantham expects more pain ahead

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The S&P/ASX 200 Index (ASX: XJO) is down 2.5% in afternoon trading.

With today’s intraday losses factored in, the ASX 200 is now down 5.6% since the opening bell on 4 January.

That comes after gaining 13% during calendar year 2021.

And it’s not just the ASX 200 that’s well into the red in the new year.

In United States markets, the Nasdaq closed down 1.3% yesterday (overnight Aussie time). That puts the tech-heavy index down 10.3% year-to-date, which is officially in correction territory.

The S&P 500 has fared a bit better, down 6.5% so far in 2022.

Like in the US, ASX tech shares have also taken a larger hit here in Australia, as witnessed by the 14% decline in the S&P/ASX All Technology Index (ASX: XTX) since 4 January.

What’s dragging on the ASX 200 lately?

Atop increased fears that the Omicron variant may delay the global reopening, analysts are broadly pointing to the likely winddown of quantitative easing (QE) along with rising interest rates from central banks as throwing up headwinds for global share markets.

Now, after 2 years of easy money, the US Federal Reserve and other leading central banks like the Reserve Bank of Australia look set to tighten policies this year.

Indeed, as Bloomberg reports, Jeremy Grantham, co-founder of asset manager GMO, says the days of the US Fed actively supporting stock markets from large losses look to be near an end. At least for now.

With inflation running hot and looking more structural than transitory, the Fed and many other central banks may have little choice. Not that they won’t attempt to prop up markets, according to Grantham.

“They will try, they will have some effect. There is some element of the put left. It is just heavily compromised,” he said, referring to the Greenspan put named after former Fed chair Alan Greenspan.

“Everything has consequences and the consequences this time may or may not include some intractable inflation” Grantham added. “But it has already definitely included the most dangerous breadth of asset overpricing in financial history.”

Where the S&P 500 goes the ASX 200 often follows

While the ASX 200 doesn’t move in lockstep with the S&P 500, the 2 global indexes do tend to move in similar patterns over time.

And if Grantham, well known for calling out market bubbles, is correct, the S&P 500 could have a lot further to fall before hitting bottom.

In saying that, US shares are in a “super bubble” – only the fourth in 100 years – and he predicts some big losses before shares markets revert to their statistical norms.

According to Bloomberg, Grantham believes that could see the S&P 500 fall another 45% from Wednesday’s close, with the Nasdaq potentially falling even further:

I wasn’t quite as certain about this bubble a year ago as I had been about the tech bubble of 2000, or as I had been in Japan, or as I had been in the housing bubble of 2007. I felt highly likely, but perhaps not nearly certain. Today, I feel it is just about nearly certain.

Now some analysts point to the fact that the Russell 2000, comprised of mid-cap shares, only gained 13.7% in 2021 compared to the stellar 26.9% gain posted by the S&P 500. This is important as mid-cap shares tend to outperform blue-chips during bull markets.

However, Grantham says that this is even more cause for concern:

This has been exactly how the great bubbles have broken. In 1929, the flakes were down for the year before the market broke, they were down 30%. The year before they’d been up 85%, they had crushed the market.

Signs that US markets, and by extension perhaps the ASX 200, are nearing the end of a massive bubble include the rapid gains in some meme stocks, the non-fungible token (NFT) craze, huge interest in cryptos with little real-world use, and “a buying frenzy in electric-vehicle names”.

According to Grantham, “This checklist for a super bubble running through its phases is now complete and the wild rumpus can begin at any time. When pessimism returns to markets, we face the largest potential markdown of perceived wealth in U.S. history.”

What’s an investor to do?

Investors who believe that Grantham’s bubble call is correct may be thinking of reallocating more funds into bonds. But Grantham believes that’s a mistake, with bonds also looking at a serious correction while global real estate is in “the broadest and most extreme” bubble ever.

So what’s an ASX 200 investor to do?

Bloomberg reports that Grantham favours stocks trading at cheaper valuations in Japan and emerging markets. He also recommends investing in some gold and silver and owning resources to serve as inflation protection, along with increasing cash allocations to invest once the bubble has burst.

The post Could the ASX 200 be poised for a historic crash? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has come under significant pressure and is on course to record a big decline. At the time of writing, the benchmark index is down 2.3% to 7,176 points.

Four ASX shares that have fallen more than most today are listed below. Here’s why they are sinking:

Allkem Ltd (ASX: AKE)

The Allkem share price has sunk 8% to $10.22. This appears to have been driven by a broker note out of UBS. According to the note, the broker has downgraded the lithium miner’s shares to a neutral rating with a price target of $11.20. While UBS is positive on lithium prices and expects Allkem to benefit greatly, it doesn’t see enough value in its shares now to maintain a buy rating.

Nuix Ltd (ASX: NXL)

The Nuix share price has crashed 21% to a new low of $1.62. Investors have been selling the investigative analytics and intelligence software provider’s shares following another disappointing update. Nuix advised that it expects to post a small decline in revenue during the first half and a more than 50% reduction in EBITDA.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 7.5% to $2.73. This morning the coal miner downgraded its guidance for FY 2022 due to La Niña and COVID impacts. Whitehaven Coal now expects coal production of 19 to 20.5 Mt in FY 2022. This is down from 20 to 21.5 Mt previously. In addition, coal sales have been downgraded and costs have been upgraded.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 8% to a new 52-week low of $3.33. This was driven by a combination of weakness in the tech sector and a broker note out of Macquarie. In respect to the latter, the broker has retained its underperform rating and slashed its price target on the buy now pay later provider’s shares by 40% to $3.40. Macquarie notes that Zip’s momentum in the key US market is slowing in response to customer additions.

The post Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) share price sinks 8% to 52-week low after brokers weigh in on its Q2 update
• Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’
• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• Nuix (ASX:NXL) share price crashes 11% amid another disappointing update
• Why BrainChip, GrainCorp, Redbubble, and Zip shares are dropping today

Motley Fool contributor James Mickleboro owns Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. 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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Key points

• The Zip share price has dropped to a new 52-week low
• Weakness in the tech sector and broker notes are weighing on its shares
• Macquarie has slashed its price target by 40%

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The Zip Co Ltd (ASX: Z1P) share price is having a disappointing finish to the week.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down ~8% to a 52-week low of $3.32.

Why is the Zip share price falling today?

Investors have been selling down the Zip share price on Friday amid a broad market selloff which is being felt hardest in the tech sector.

For example, at the time of writing, the ASX 200 is down 2.4% and the S&P ASX All Technology index is down 3.3%.

In addition to this, several brokers have responded to the company’s second quarter update, which appears to be weighing on the Zip share price today.

What are brokers saying?

The team at Macquarie was disappointed with Zip’s performance during the quarter. In response, it has retained its underperform rating and cut its price target on the company’s shares by a massive 40% to $3.40.

Macquarie notes that Zip’s momentum in the key US market is slowing in response to customer additions. This led to the company’s revenues falling short of the broker’s estimates.

Over at Citi, its analysts were also disappointed with its performance but remain a lot more positive on the Zip share price. It has retained its neutral rating and $5.85 price target.

Citi was pleased with the company’s top line growth but not its bad debts.

It explained: “Zip’s 2Q trading update was largely in-line, with group 1H revenue of $304 million (pro forma) slightly below Citi forecasts of $304 million when adjusting for the acquisitions completing through the course of 2Q. Looking ahead, Omicron’s impact to retail represents a risk to 3Q, however signing up of large Enterprise merchants in the US is key for 2H, with Zip noting that it is in advanced discussions with top 50 US retailers.”

“We expect earnings downgrades on the back of the higher than expected net bad debts in Australia but note that declining monthly arrears rate suggests that net bad debts should fall going forward,” it concluded.

The post Zip (ASX:Z1P) share price sinks 8% to 52-week low after brokers weigh in on its Q2 update appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, GrainCorp, Redbubble, and Zip shares are dropping today
• ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue
• Has the Zip (ASX:Z1P) share price fallen on Block’s ASX debut?
• Zip (ASX:Z1P) share price on watch amid record second quarter performance
• 2 ASX shares that now have 80% upside: analysts

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 ZIPCOLTD FPO. 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 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.

I’ve learned a lot over four decades of investing, including over 20 years now with The Motley Fool. Along the way, I’ve definitely made my share of mistakes.

To help you boost your chances of scoring those huge winners that make such a difference over the years, I want to tell you about the three biggest things I wish I’d known before I started investing.

I believe these three simple, yet powerful, points have the potential to increase a career nest egg by hundreds of thousands of dollars. Please allow me to show you why I think this is no exaggeration, as well as steps you can take to stack the odds in your favor.

1. Don’t worry about trying to time the market

Let me illustrate what I mean with an amazing fact. Perhaps you’ve heard the story of a Fidelity study that showed its best-performing accounts were ones owned by dead people, because they (being dead and all) never traded anymore — and these untouched accounts easily outperformed those of active traders.

Now, as best I can tell that study is just an urban legend, but the idea behind it is true. Several studies have shown a direct correlation between trading activity and portfolio performance.

Summed up: These studies show us the more we trade the more our portfolios may suffer. Trying to sell at market highs and buy back in at market lows can be very tempting, but it’s nearly impossible to accomplish and can lead to severe underperformance.

At The Motley Fool we believe the greatest way to achieve massive wealth for ordinary investors is to regularly invest over a long period of time, and not worry about where the market happens to be at any particular moment. Having a long-term mentality and ability to ride out the inevitable market downturns is one of the most important aspects of a successful investing career.

Another way to look at it: Trying to avoid market declines is more dangerous than enduring market declines.

2. Timing isn’t critical to long-term success, but time is

It may seem hard to do, but if you trust the sheer, brute power of time, you can have a much calmer and rational approach to investing.

Here’s another way to think of it: Time can help mediocre investors beat great ones. It’s true, you can beat Warren Buffett if you have enough time and we give him time constraints.

The practical application here is to not neglect your early years, because they are key to adding more time in the market for you and increasing the potential of huge favorable swings in the future.

Get started investing as soon as possible to get that compounding machine working.

Morgan Housel, former Fool contributor and author of the fantastic book The Psychology of Money, sums it up like this: “Compound interest is like planting oak trees. One day’s progress shows nothing, a few years’ progress shows a little, 10 years shows something big, and 50 years creates something absolutely magnificent.”

3. One percent makes a huge difference

Eking out 1% more in average annual returns can make a surprisingly huge difference over time, meaning the choice to become a better investor could mean jaw-dropping amounts of money over the years.

Let’s take an example of someone who contributes $3,000 a year to their 401(k). My research has shown that earning an extra 1% annually can mean as much as hundreds of thousands of dollars extra over a lifetime, depending on rates of return and time invested. This first example uses 6% vs. 7% average annual returns:

Years	Jim: 6% Avg. Returns	Jane: 7% Avg. Returns	Difference
20	$116,978	$131,596	$14,618
40	$492,143	$640,829	$148,686
60	$1,695,348	$2,611,400	$916,052

And because I love playing with the data, let’s get crazy and look at 10% vs. 11% annual returns:

Years	Jim: 10% Avg. Returns	Jane: 11% Avg. Returns	Difference
20	$189,007	$213,795	$24,788
40	$1,460,555	$1,937,481	$476,926
60	$10,014,894	$15,834,369	$5,819,475

Yes, 10% and 11% average annual returns can be tough to achieve, but I think this really illustrates the power of time and higher returns over the decades.

My takeaway

Get your investing career going as soon as you can. Don’t try to time the market’s ups and downs. Broad market index funds are a great start and might be all you need if you don’t have the time or desire to learn more, but remember that every percentage point matters over the long term.

If you decide to go beyond index funds, our Motley Fool stock-picking services generally recommend investors buy shares of at least 25 companies and aim to hold each company for five years or more. We see ourselves as part owners of great businesses, not stock traders.

We think investors should be prepared to see volatility in their portfolios, with drops of 20%, 30%, and even more. That’s just the way the market works. But history shows that over time, the ups overpower the downs and the end result can be truly life changing.

So, if you want to avoid the mistakes I’ve pointed out and are ready to commit to regular investing over the long term, I don’t think there’s a better time to start than right now. 

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

The post 3 things I wish I’d known before I started investing appeared first on The Motley Fool Australia.

More reading

• AMP (ASX:AMP) latest to join call for RBA interest rate hike in August 2022
• Why Anteotech, Appen, Boral, and Kogan shares are rising today
• Newcrest (ASX:NCM) share price dips despite acquisition approval
• The Centaurus Metals (ASX:CTM) share price is tumbling 7% today. Here’s why
• Magnis (ASX:MNS) share price sinks 6% amid battery plant update

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.

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

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Key points

• AMP has brought forward expectations of an RBA rate hike to August from November 2022.
• Strong job numbers increase the chance the RBA will stop its bond buying programs next month, AMP says.
• The RBA says the cash rate will remain at 0.1% until inflation targets of 2–3% are met.
• It forecasts a rate hike no sooner than 2023, but we’ll see in its next meeting on 1 Feb.
• The AMP share price is down circa 7% since January 1.

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Australia’s jobless rate recently plunged to its lowest mark in more than 10 years, prompting economists at AMP Ltd (ASX: AMP) to bring forward expectations of an RBA rate hike in August 2022.

The unemployment rate came in at just 4.2% in the latest statistics, increasing the likelihood of an RBA rate hike earlier than 2023 – the RBA’s own forecast – according to AMP.

Economists at AMP join experts at Westpac Banking Corp (ASX: WBC) who yesterday brought forward expectations for a rate increase in August from February 2023. Let’s take a look.

What’s AMP saying about interest rates in 2022?

Given the strong employment numbers, there is a high chance the RBA will revert its quantitative easing programs in February, AMP says.

For instance, data showed that full-time roles increased by a total of 41,500 while the number of part-time roles grew by 23,300.

Number of hours worked also increased by 1%, signalling an increase in productivity on the participation front.

All of this pushed the unemployment rate down to just 4.2% – its lowest level since 2008 – after peaking above 7% in 2020.

The RBA is scheduled to meet on 1 February, and the minutes won’t be conveyed until the following day, so we won’t know for sure the outcome on the cash rate and inflation until then.

However, economist Diana Mousina from AMP Capital Markets reckons the jobs report provides ample stimulus for the central bank to taper its bond-buying programs.

“These numbers definitely increase the likelihood of the RBA abandoning bond buying next month”, Mousina said in a research note on Thursday.

Not only that, but they also “increase the likelihood of the RBA hiking rates earlier”, she noted, subsequently bringing forward AMP’s expectations of a rate increase to August in doing so, 2 months ahead of previous forecasts.

The RBA disagrees with Mousina in language from its most recent meeting last month. Governor Dr Philip Lowe remained adamant that the cash rate will remain stagnant at 0.1% until inflation targets of 2–3% are met.

It expects any changes to the cash rate and therefore the level nominal interest rates to occur no sooner than 2023.

However, AMP is joined by Westpac chief economist Bill Evans, who yesterday brought forward expectations of when the RBA will tighten interest rates.

Evans now expects the RBA to begin tightening in August as well – ahead of previous estimates in February 2023 – amid inflation risk and strong employment data.

Economists at both firms expect the RBA to start the first hike in August with a 15 basis points raise, which AMP reckons will lift the cash rate to 0.25%.

The market will know more after the RBA meets in February and Dr Lowe presents his speech the day after.

How’s the AMP share price performing so far in 2022?

As seen on the chart below, the AMP share price (blue) has a lot of catching up to do in order to break even from the benchmark S&P/ASX 200 Index (ASX: XJO).

In the last 12 months, it has slipped more than 40% into the red, after diverging from the market back in February 2021. Trading at such a discount to the benchmark begs the question of opportunity cost when one can simply purchase an ETF tracking the broad index.

The trend has continued this year to date, where AMP has largely matched the benchmark in direction and volatility, however, it leads the index in losses, down 7% since January 1.

The post AMP (ASX:AMP) latest to join call for RBA interest rate hike in August 2022 appeared first on The Motley Fool Australia.

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• Why did the AMP (ASX:AMP) share price fall 35% in 2021?
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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 on course to end the week deep in the red. At the time of writing, the benchmark index is down 2.1% to 7,182.8 points.

Four ASX shares that have managed to avoid the selloff and push higher are listed below. Here’s why they are rising today:

Anteotech Ltd (ASX: ADO)

The Anteotech share price is up 3% to 38 cents. This means the medical device company’s shares are up almost 18% in the space of a week. Investors have been buying Anteotech’s shares amid hopes that its rapid antigen test will be approved for sale in Australia in the very near future.

Appen Ltd (ASX: APX)

The Appen share price is up 2% to $10.50. This artificial intelligence data services provider’s shares have been positive performers this week thanks largely to a broker note out of Citi. Its analysts suggested that no trading update was good news for investors and could mean Appen has achieved its guidance in FY 2021. It feels this could make consensus estimates too low.

Boral Limited (ASX: BLD)

The Boral share price is up over 2% to $5.87. This is despite there being no news out of the building materials company today. However, prior to today, its shares had lost around a quarter of their value in the space of six months. This could have led to some bargain hunters picking up shares today.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 2% to $7.37. This ecommerce company’s shares are avoiding the market selloff today, potentially due to already being sold off this week. Kogan’s shares have come under pressure amid underwhelming updates from a number of peers. Investors don’t appear to believe this bodes well for its performance during the first half.

The post Why Anteotech, Appen, Boral, and Kogan shares are rising today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify
• AnteoTech (ASX:ADO) share price gains 42% in a week amid RAT race
• Kogan (ASX:KGN) share price hits new 52-week low. Down 37% in 6 months
• Top brokers name 3 ASX shares to buy today
• Why is the Appen (ASX:APX) share price underperforming its ASX 200 tech peers?

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 Appen Ltd and Kogan.com ltd. The Motley Fool Australia owns and has recommended Appen Ltd and Kogan.com ltd. 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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Key Points

• Pretium shareholders vote in favour of the Newcrest acquisition
• Approval still needed from Supreme Court and Investment Canada Act
• If green-lit, the acquisition bolsters Newcrest’s gold mine portfolio

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The Newcrest Mining Ltd (ASX: NCM) share price is backtracking on Friday.

This comes regardless of the company receiving approval for the purchase of the infamous Brucejack mine.

At the time of writing, the gold miner’s shares are swapping hands for $25.29 apiece, down 1.02%.

Newcrest set to increase gold mine portfolio

In today’s release, Newcrest advised it’s set to acquire the remaining stake in Canadian metals and mining company, Pretium Resources.

The Australian gold miner currently holds a 4.8% stake in its Canadian counterpart.

In the meeting held today, Pretium Resources shareholders and option holders voted overwhelmingly in favour of the transaction. In total, 95.48% of the votes cast approved the special resolution.

Under the agreement, Pretium shareholders electing to receive maximum cash consideration will receive approximately C$10.81 (A$12.00) in cash and 0.3357 Newcrest shares per Pretium share.

Pretium shareholders who elected to receive the maximum share consideration will be allocated 0.8084 Newcrest shares per Pretium share.

Pretium shareholders that did not elect cash or Newcrest shares will receive the default consideration of 50% cash and 50% Newcrest shares. This will be C$9.25 (A$10.26) in cash and 0.4042 Newcrest shares per Pretium share.

It is worth noting that the transaction will need to be authorised by the Supreme Court of British Columbia. A hearing is scheduled for next week on 25 January.

In addition, a clearance is needed from the Investment Canada Act which is expected to occur in the March quarter.

Newcrest managing director and CEO, Sandeep Biswas commented:

It’s pleasing to see the overwhelmingly positive support for the Transaction from Pretium shareholders. This acquisition positions Newcrest as the leading gold miner in British Columbia’s Golden Triangle, operating both the Brucejack and Red Chris mines.

This is an exciting time for Newcrest and we look forward to building on Pretium’s success to unlock further value in and around the Brucejack operation.

Quick take on Pretium

Pretium is the owner of the Brucejack gold mine which is one of the highest-grade operating gold mines in the world. It has an estimated gold production of 311koz (thousand ounces) per annum at an all-in sustaining cost (AISC) of $743 per ounce. The projected mine life is around 13 years.

Furthermore, Brucejack is conveniently located about 140 kilometres from Newcrest’s majority-owned and operated Red Chris mine. This allows the company to strengthen the region by having close access to critical infrastructure.

Newcrest share price summary

Over the past 12 months, the Newcrest share price has been on a rollercoaster ride, posting a loss of 7%. Year-to-date, however, its shares are up around 3% for investors.

The company holds the title of owning and operating some of Australia’s largest gold and copper mines. While the company appears solid on paper, its shares have not been immune to weakened market conditions.

Based on today’s price, Newcrest commands a market capitalisation of roughly $20.68 billion, with approximately 817.96 million shares outstanding.

The post Newcrest (ASX:NCM) share price dips despite acquisition approval appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Newcrest (ASX:NCM) share price regains some shine as inflation worries mount
• Leading fund manager says these blue-chip ASX shares are buys right now
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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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