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Could the BHP Group Ltd (ASX: BHP) share price be a buy for income with the resources giant expected to pay a large yield in FY22?

The iron ore price may have fallen over the last several months. However, the iron ore price has recovered a bit of that lost ground. Some of BHP’s other commodities are also seeing higher prices, which could help with profit, cashflow and perhaps the dividend.

How big is the dividend going to be in FY22?

Every analyst comes up with their own prediction about what the dividend could be in the current financial year.

On Commsec, the dividend estimate for BHP in FY22 is an annual dividend of $3.86 per share. That translates to a grossed-up dividend yield of 13%.

The broker Macquarie Group Ltd (ASX: MQG) also has pencilled in a dividend that translates to a grossed-up dividend yield of 13% at the current BHP share price.

However, there are some analysts that think the dividend won’t be quite as big. For example, Morgans thinks the FY22 dividend yield will be 11.5%, grossed-up.

At this stage, it seems analysts are expecting that the FY22 dividend will be smaller than the FY21 dividend. However, the above estimates still put the yield at more than 10%.

Could the BHP share price be an opportunity?

Macquarie thinks BHP is a buy, with a price target of $52. Morgans thinks BHP shares are a buy with a price target of $45.70.

Macquarie thinks that BHP shares are valued at under 10x FY22’s estimated earnings.

Looking at the iron ore price, which was the key profit generating division for BHP in FY21, the iron ore price went up 2.8% yesterday to US$122.90 per tonne. Remember that iron ore prices had fallen below US$90 several weeks ago. It has recovered quite a bit.

Macquarie notes that Chinese demand for steel seems to be rising whilst the inventory is dropping.

BHP can’t really control the global prices for each of its commodities, but it is responsible for much production there is.

In the three months to September 2021, its copper production fell 9% to 376.5kt. Iron ore production dropped 4% year on year to 63.3mt. Metallurgical coal production fell 9% to 8.9mt. Nickel production dropped 20% to 17.8mt.

A few months ago, BHP also announced that it had approved an investment of US$5.7 billion for the Jansen Stage 1 project in Canada – a potash project. Potash is a greener form of fertiliser that is hoped to help the world decarbonise.

The post Is the BHP (ASX:BHP) share price a buy for the 13% dividend yield? appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX 200 dividend shares with attractive fully franked yields
• These 2 ASX shares are over 100 years old. Are they buys?
• Here’s why ASX 200 mining shares could be in for a boost in 2022
• 5 things to watch on the ASX 200 on Tuesday
• Brokers name 3 ASX shares to buy

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Bruce Jackson.

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Despite 2021 being another year defined by COVID-19 impacts, ASX share investors managed to come out ahead. During the year, the S&P/ASX 200 Index (ASX: XJO) returned 13% (before dividends) — which is well above the average total return of 9.3% over the past 10 years.

As we begin to get comfortable with the New Year of 2022, now seems as good of a time as any to reflect on the ASX share market in 2021.

For many investors, 2021 entailed discovering new lessons and remembering some old ones.

FOMO can be a dangerous beast

Early into the year, portions of the ASX share market began displaying signs of classic fear of missing out (FOMO) mentality. For example, buy now, pay later (BNPL) shares gathered an unusual amount of interest in February 2021. This resulted in booming share prices across some of the more speculative companies in the sector, including:

• Ioupay Ltd (ASX: IOU) gaining 412% in two weeks
• Fatfish Group Ltd (ASX: FFG) rising 800% in two weeks, and
• Cirralto Ltd (ASX: CRO) climbing 100% in two weeks

On reflection, this FOMO approach often didn’t pay off for ASX investors. From February 2021, all three companies fell 40% or more by the end of the year. As Fidelity International investment director, Tom Stevenson puts it:

FOMO is the enemy of investment success. It sucks people into markets at precisely the wrong time. It is the cause of bubbles and the reason markets overshoot.

Thinking long term can be a superpower

What can often set average returns apart from amazing returns is a long-term approach to investing. As the saying goes, “Time in the market beats timing the market”.

An example of this is the benchmark index itself. An ASX investor buying the index at the beginning of 2020 would have been down 28% after three months. However, if that person took a long-term approach, they would now be up 12.4%.

In an interview last year with The Motley Fool, Bennelong Funds Management research relationships director Stuart Fechner said:

You can never tell how long it will take for a market fall to be recovered but we all know it will be. If you can keep your head in such turbulent times there are opportunities to be taken that will provide benefits over time.

Markets can humble even the greats of investing

The last lesson from 2021 comes from one of Australia’s most renowned fund managers, Magellan Financial Group‘s (ASX: MFG) Hamish Douglass.

In a monthly update for December, Douglass addressed the underperformance of Magellan’s funds. The ASX investor admitted he had made a few mistakes during the year which led to the undesirable performance. When referencing this, Douglass said, “Markets can be very humbling…”

This illustrates the unpredictable nature of investing. Sometimes even some of the most experienced people in the game make mistakes. However, like Douglass, investors can adjust accordingly. If anything, this serves as a reminder that ASX investors can still succeed in the long run, despite some hiccups along the way.

The post What are some key lessons for ASX share investors at the end of 2021? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Wednesday
• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise
• LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

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. 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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When it comes to the S&P/ASX 200 Index (ASX: XJO), there are few blue-chip shares bluer than Wesfarmers Ltd (ASX: WES). Wesfarmers can be classed as ASX royalty. It’s been around for more than a century, owns (or has owned) some of our most iconic retailing businesses, and is now the eighth-largest ASX 200 share by market capitalisation.

Wesfarmers is also regarded as a solid dividend payer, having paid out fairly consistent biannual dividends for decades now. But things can change, and dividends are never guaranteed. Just ask any shareholder of Westpac Banking Corp (ASX: WBC) what happened to their 2020 interim dividend.

So how do Wesfarmers’ dividend payouts measure up as we begin 2022? Let’s have a look.

What kinds of payouts are we dealing with?

So in 2021, Wesfarmers paid out two dividends. There was the company’s interim dividend of 88 cents per share that was paid out on 31 March. As well as the final dividend of 90 cents a share that investors received in October. Both of these payouts were fully franked, as is usually the case with Wesfarmers.

They were also both improvements over 2020’s dividends, which saw investors receive an interim dividend of 75 cents per share, and a final dividend of 77 cents per share. In saying that, Wesfarmers shelled out a special 18 cents per share dividend that year as well. This reflected the company’s sale of part of its remaining stake in Coles Group Ltd (ASX: COL).

So Wesfarmers’ two 2021 dividends give its shares a trailing yield of 2.97%, based on the current share price of $59.91. So let’s see how that measures up to some other ASX 200 blue-chips.

Well, for starters, it beats out Woolworths Group Ltd (ASX: WOW). Woolies currently has a trailing and fully franked yield of 2.85% on offer today.

But that’s where Wesfarmers’ dividend superiority largely ends.

How does the Wesfarmers dividend measure up?

The aforementioned Coles currently has a yield of 3.44%, also fully franked. Of course, long-term Wesfarmers shareholders might also be holding their Coles shares from the 2018 demerger.

Perhaps naturally, the big four banks also pip Wesfarmers in the income department. Commonwealth Bank of Australia (ASX: CBA) presently has the lowest yield of the majors, but it is still at 3.4%. Westpac Banking Corp (ASX: WBC) is currently leading the sector with its 5.4% trailing yield.

And let’s not even get started on the miners. BHP Group Ltd (ASX: BHP) still has its trailing yield of 9.47%. And Rio Tinto Limited (ASX: RIO) also has a yield north of 9% on display right now.

Telstra Corporation Ltd (ASX: TLS) is also ahead of Wesfarmers with its 3.82% yield. 

So all in all, Wesfarmers doesn’t exactly measure up to many of its ASX 200 blue-chip peers when it comes to yield size. But then again, if Wesfarmers traded on the same 15.5 earnings multiple that Westpac does, its yield would be a lot higher. Instead, it is commanding a multiple of 28.25. Sometimes, you can’t have it all!

The post How does the Wesfarmers (ASX:WES) dividend compare to other ASX 200 blue chips? appeared first on The Motley Fool Australia.

More reading

• Is the Wesfarmers (ASX:WES) share price an opportunity right now?
• Here’s why December is being kind to the Wesfarmers (ASX:WES) share price
• 2 strong ASX 200 dividend shares to own for income
• Invested in Wesfarmers (ASX:WES) shares? Here’s what to watch in 2022
• Woolworths (ASX:WOW) share price rises as boss courts API pharmacists

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 COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. 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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The Cronos Australia Ltd (ASX: CAU) share price is up in orbit today, leaping 45% at one stage.

At the time of writing, the medical cannabis company’s shares had settled at 30.5 cents apiece, up 32.61%, after peaking at 33.5 cents in early afternoon trade.

Cronos shares have spiked over the past few days, leaping from just 20 cents on 30 December.

As well, Cronos shares are trading at 534% of their 4-week average volume today as investors pile into the company to close the session.

Why is the Cronos share price charging higher today?

Before today, the last we heard from the company was on 16 December. Back then, the company announced it had completed its merger with CDA Health Pty Ltd after all conditions were satisfied.

As a result, Cronos Australia now owns CDA Health and the former shareholders of CDA Health collectively own approximately 73.6% of the undiluted capital of Cronos Australia.

Although there’s been no remarkable information from Cronos these past few sessions, today the company was asked to respond to an ASX ‘please explain’ letter.

The ASX wanted Cronos to offer a reason for the change in its share price from 23 cents at yesterday’s close to its high of 33.5 cents today.

Cronos confirmed it is not aware of any information that has not been announced for the recent attention to its shares.

However, it acknowledged the CDA merger in its response. Cronos believes the merger will provide a material increase in both size and scale of its operations and a route to early profitability for the integrated group.

With this in mind, the company says the “the potential benefits to the Company from completing the Merger may have contributed to the recent increase in the Company’s share price and trading volumes”.

It’s not an unreasonable explanation. Equity and derivatives traders often ‘trade the news’, as they say in finance, resulting in short-term volatility that can compound with retail trading activity.

Regardless, the market appears to have viewed the company’s most recent advancements in a positive light.

Cronos share price snapshot

In the last 12 months, the Cronos share price has gained more than 145% and it is already up 52% in the first 2 sessions this year.

Over the past month, it has gained 44%. However, prior to its most recent gains, the company was trading fairly poorly, staying within a sideways channel until mid-September 2021.

Nonetheless, it seems Cronos is off to a good start in 2022.

The post Why is the Cronos (ASX:CAU) share price soaring 45% today? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX Cannabis shares in 2022?
• These were the top performing ASX cannabis shares in November

The author has no positions 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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With most analysts still taking time off over the holiday period, broker notes are extremely limited right now.

But never fear! Listed below are a few recent broker recommendations that remain very relevant today. Here are three ASX shares rated as sells:

AMP Ltd (ASX: AMP)

According to a note out of UBS, its analysts have put a sell rating and 90 cents price target on this financial services company’s shares. UBS isn’t overly positive on AMP’s demerger plans. It notes that the PrivateMarketsCo business has been experiencing revenue and margin weakness and doesn’t appear to believe things will improve in the short term. In addition, UBS feels the core business will be reliant on cutting its costs to support its growth. The AMP share price is trading at $1.01 on Wednesday afternoon.

Insurance Australia Group Ltd (ASX: IAG)

A note out of Morgan Stanley reveals that its analysts have an underweight rating and $3.75 price target on this insurance giant’s shares. The broker highlights a number of factors the company is facing that it fears could weigh on its performance. These include reinsurance renewal and reform risks, market share losses, and margin weakness. The IAG share price is fetching $4.37 on Thursday.

Woolworths Group Ltd (ASX: WOW)

Another note out of UBS reveals that its analysts have a sell rating and $35.00 price target on this retail giant’s shares. This follows the release of a trading update which revealed that COVID-related costs are impacting its earnings. And while these costs will soon ease, the broker has concerns about the impact food costs and its investment in online shopping will continue to have on margins. Another headwind UBS thinks investors should be aware of is the lack of population growth. The Woolworths share price is trading at $37.89 this afternoon.

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

More reading

• Why did the AMP (ASX:AMP) share price fall 35% in 2021?
• Could the IAG (ASX:IAG) share price be on the road to recovery in 2022?
• Woolworths (ASX:WOW) share price shrugs off COVID-induced supply issues
• December has been pretty dire for the Woolworths (ASX:WOW) share price. Here’s why
• Own IAG (ASX:IAG) shares? Here are the key dates to pencil in for 2022

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 owns and has recommended Insurance Australia 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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The Kogan.com Ltd (ASX: KGN) share price is struggling through the first week of 2022, despite only silence from the company.

However, it’s recently made news as some claim the online retailer was one an accessible marketplace where overpriced COVID-19 rapid antigen tests have been found.

At the time of writing, the Kogan share price is $8.23. That’s 4.5% lower than its previous close and 7% lower than it was at the end of 2021.

Let’s take a closer look at today’s news regarding Kogan.

Kogan share price sinks amid ACCC warning

The Kogan share price is sliding this week despite no news having been released by the company.

Meanwhile, claims its marketplace hosted sellers gauging prices for COVID-19 rapid antigen tests have emerged.

The Australian Competition and Consumer Commission (ACCC) addressed the issue yesterday as its chair Rod Sims warned retailers not to engage in “cartel conduct”. Sims stated:

The most excessive pricing, so far, we’ve seen on things like… Kogan, where they possibly allow consumers to post goods.

The watchdog chair also noted Ebay Inc (NASDAQ: EBAY) had been the source of many complaints of price gauging and urged Australians to continue reporting instances of overpriced tests to the ACCC.

Twitter Inc (NYSE: TWTR) users are posting images of rapid antigen tests for sale for $44.99 each, or 20 for $667.99 on Kogan.

However, the product in question doesn’t appear to be available on Kogan’s site at the time of writing. It’s also unlikely the alleged instance is weighing on the Kogan share price this week.

Rapid Antigen Test profit gouging by @Kogan

20 test box for $667.99

Single test price?

$44.99

Free shipping.

What say you @acccgovau pic.twitter.com/3uOStDq7g5

— Richard Ings : 8.5 billion doses and counting (@ringsau) December 31, 2021

https://platform.twitter.com/widgets.js

In an ACCC statement, Sims noted:

While suppliers are generally able to set their own prices, businesses must not make false or misleading statements about the reason for high prices.

We won’t be shy to name and shame suppliers and retailers we consider to be doing the wrong thing.

Demand for the tests has likely been exacerbated by new testing requirements introduced by the federal government late last month. It’s also likely been driven by some states, including Queensland, requiring arrivals to conduct a rapid test before entry.

Right now, the Kogan share price is 14% higher than it was this time last month. However, it’s still 58% lower than it was 12 months ago.

The post Why is the Kogan (ASX:KGN) share price having such a lacklustre start to 2022? appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Kogan, Premier Investments, and Pro Medicus shares are dropping
• Why Elixir Energy, Kogan, St Barbara, and Zip shares are dropping
• 2 ASX shares that could be buys for both growth and dividends
• Top ASX shares to buy in January 2022
• 3 reasons why the Kogan (ASX:KGN) share price could be a smart buy

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. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended 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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The S&P/ASX 200 Index (ASX: XJO) looks set to record its first decline of the year today. In afternoon trade, the benchmark index is down 0.3% to 7,565.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Anteotech Ltd (ASX: ADO)

The Anteotech share price is up 5.5% to 29 cents. This appears to have been driven by optimism that this surface chemistry company will benefit greatly from demand for COVID-19 rapid antigen tests. Late last year the company completed its TGA submission for the EuGeni Reader and SARS-CoV-2 Ag Rapid Diagnostic Test. However, it is worth noting that it is still waiting for approval in Australia.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price has continued its rise and is up a further 23% to 96.5 cents. Investors have been buying the artificial intelligence technology company’s shares this week following reports that Mercedes has included Brainchip’s Akida chip in its Vision EQXX electric concept car. The chip is reportedly being used to power its “Hey Mercedes” smart assistant feature.

RAIZ Invest Ltd (ASX: RZI)

The RAIZ Invest share price is up 2% to $1.79 following the release of its monthly update. That update revealed that the micro-investing platform provider’s active customers increased 3.3% globally to 594,992 during December. Though, taking some of the shine off the news was a decline in Australian active customers.

Santos Ltd (ASX: STO)

The Santos share price is up 2.5% to $6.76. Investors have been buying this energy producer’s shares after oil prices rose overnight. Prices pushed higher despite OPEC revealing that it will go ahead with its plan to raise its output target by 400,000 barrels per day next month. The Santos share price is now up 10% in the space of two weeks.

The post Why Anteotech, Brainchip, RAIZ, and Santos shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• The Brainchip (ASX:BRN) share price soared another 19% today. What’s going on?
• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise
• LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX shares analysts rate as buys in January

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having an interesting trading session so far this Wednesday. At the time of writing, the ASX 200 has gone backwards by 0.31% at 7,566 points after initially spiking into positive territory this morning.

Rather than trying to figure that all out, let’s instead dig into the ASX 200 shares topping the ASX 200’s market volume charts, according to investing.com.

3 most traded ASX 200 shares by volume this Wednesday

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is the first stone to turn over today. This telecommunications giant has had a hearty 9.07 million of its shares trade on the markets thus far this Wednesday. That’s despite not much in the way of news announcements or developments from the company.

So perhaps this high volume is the result of the movements in the Telstra share price. Telstra shares are currently down by 0.6% at $4.20 a share after hitting a new 52-week high of $4.23 earlier this morning. This is probably why we are seeing Telstra on this list today.

Scentre Group (ASX: SCG)

ASX 200 real estate investment trust (REIT) Scentre is next up. The owner of the Westfield brand in Australia and New Zealand has had 9.43 million of its shares find new owners thus far today.

Again, it’s not entirely clear why so many Scentre shares are flying around the markets today. It could be the result of the Scentre unit price’s wild gyrations this Wednesday. At the time of writing, Scentre is down by 0.3% at $3.24, but earlier today we saw this REIT rise as high as $3.30 (up 1.25%). It’s probably this volatility that is behind this elevated volume.

Pilbara Minerals Ltd (ASX: PLS)

To perhaps no one’s surprise, Pilbara Minerals is the ASX 200’s most traded share thus far today, as is often the case. This lithium producer has seen a sizeable 19.5 million shares bought and sold so far this Wednesday. Again, there have been no fresh developments out of the company itself.

However, we have seen the Pilbara share price continue to charge higher. It’s currently up by 1.42% at $3.57 a share, but hit a new all-time high of $3.61 earlier in today’s session. This is the likely reason we see Pilbara at the top of the table this afternoon.

The post These 3 ASX 200 shares are topping the volume charts on Wednesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise
• The Telstra (ASX:TLS) share price has been rising, so why is the dividend shrinking?
• LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?
• The 5 best ASX lithium stocks of 2021
• How the Pilbara Minerals (ASX:PLS) share price surged 268% higher in 2021

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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Bitcoin (CRYPTO: BTC) is up 0.5% over the past 24 hours, currently trading for US$46,336 (AU$64,051).

Though it’s down just over 3% in 2022, the world’s biggest crypto, with a current market cap of US$877 million, gained 63% in 2021. It also set a new all-time of US$68,789 on 10 November.

With more Aussies interested in buying cryptocurrencies, investors are wondering whether Bitcoin can again post new records this year, or if the token is due for a big fall.

For some insight into that question, we turn to 3 industry experts.

Bitcoin to US$90,000…and beyond

Kicking off with a bullish outlook for the Bitcoin price is Katie Stockton, managing partner of Fairlead Strategies LLC.

According to Stockton (as quoted by Bloomberg):

We are bullish Bitcoin long-term, based on our long-term trend-following gauges. We assume the long-term uptrend will maintain itself and a more decisive breakout to new highs would allow for an impressive measured-move projection of approximately $90,000.

For now, a corrective phase still has a hold, although there are potential signs of short-term downside exhaustion.

Antoni Trenchev, managing partner of crypto lender Nexo, is also enthusiastic about Bitcoin’s outlook for 2022. Despite forecasting continued volatility, he expects the token to hit US$100,000 by late June.

Pointing to the tailwinds Bitcoin has received from central bank monetary easing, Trenchev said:

The number one influencing factor for Bitcoin and cryptocurrencies in 2022 is central bank policy. Cheap money is here to stay which has huge implications for crypto… The Fed doesn’t have the stomach or backbone to withstand a 10-20% collapse in the stock market, along with an adverse reaction in the bond market.

But not every crypto analyst is equally bullish.

Group-think stupidity

Jeffrey Halley, senior market analyst at Oanda Asia Pacific, believes cryptos like Bitcoin will struggle in the year ahead.

He said (quoted by Bloomberg), “Although I expect the speculative zeal to continue in the crypto space, it, like bloated technology valuations, faces a much more challenging environment in 2022.”

Halley has a different take to Trenchev on what the US Fed and other leading global central banks will be forced to do with rates in 2022.

“The primary reason is the start of interest-rate normalization by the Federal Reserve but with other major central banks likely to follow as well,” he said. “That will challenge the raison d’être that crypto is an alternative to fiat money.”

And with essentially unlimited competition coming out of the virtual woodwork, Halley doesn’t see things ending well for Bitcoin and altcoin investors longer-term:

Hanging over the crypto space is the threat of more regulation and frankly, with a new coin coming out every week which is ‘the next big thing’ and driven by speculation and not blockchain, I’m struggling to see how any of them will be. I continue to believe that cryptocurrencies are the greatest case of financial-market group-think stupidity in history. The music may keep playing for part of 2022, but the emperor still isn’t wearing any clothes.

Bitcoin to US$100,000 in 2022 or exposed as unclothed?

Tune in next year for the definitive answer!

The post Investing in Bitcoin? Here’s what the crypto experts are predicting for 2022 appeared first on The Motley Fool Australia.

More reading

• 3 more countries to make Bitcoin legal tender this year: expert
• 3 big reasons crypto sceptics are WRONG
• How interest paying crypto accounts could be a gamechanger
• Why is the BetaShares Crypto Innovators ETF (ASX: CRYP) share price leaping higher today?
• Why the Bitcoin price was bouncing back today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 AMP Ltd (ASX: AMP) share price kept tumbling in 2021, continuing a long term downward spiral for the wealth management company.

Shares in the company fell 35.36% between 31 December 2020 and the same date in 2021, plunging from $1.56 to $1.01. To put this in perspective, the S&P/ASX 200 Index (ASX: XJO) gained 13% over the same period.

Let’s take a look at some of the company’s highs and lows in 2021.

What impacted AMP last year? The lows…

The AMP share price may have had a shocker of a year in 2021, but this is not unusual for the company these days. In fact, AMP shares have dropped a whopping 81% over the past 5 years.

Starting with some of the lows in 2021, 11 February was a shocker for the AMP share price, which dropped 11% in a day. On this day, the company released an investor report on its financial performance in 2020. Investors did not respond well to news the company’s underlying net profit after tax declined 33% on the previous year.

Shares were also in freefall in April, dropping 11% for the month. During this month, the company announced it was looking to spin off its private markets business while keeping a retail wealth management group within AMP.

However, news then emerged that 93% of investors in AMP’s $5 billion AMP Capital Diversified Property Fund had voted to merge with a wholesale fund managed by DEXUS Property Group (ASX: DXS). Finally, AMP only just avoided its remuneration report being voted down at its annual general meeting.

November and December also saw the share price suffer some massive free falls. Between 8 November and 7 December 7, shares in AMP fell a massive 23%. In late November, the company provided an update on its demerger from PrivateMarketsCo. The company advised it was making strong progress on this separation.

However, despite this release providing short-term relief to the share price with a gain of 3%, it fell 10% the next two days. UBS also released a broker note cutting the price target on the company’s shares to 90 cents.

And the highs…

Moving on to the highs, February saw the company’s share price surge on the back of news of the potential joint venture with Ares Management Corp. However, news that the 30-day exclusivity period on the transaction had concluded in late March sent shares sliding nearly 4%. March concluded with the AMP share price recovering nearly 6% after the appointment of new CEO Alexis George.

June also saw some highs for the company, with the appointment of Michael Hirst to the board. Shares spiked 3.45% in the company on the day of this announcement.

Late September and early October was a positive time for AMP investors, with the share price skyrocketing 27% between September 22 and the same date in October.

A trading update from the company revealed positive financial performance in the third quarter of the year. This release also updated investors that its demerger program was on track for completion by mid-2022.

In a positive end to the year, the AMP share price surged 6.38% on Christmas Eve after the company announced PrivateMarketsCo will sell its infrastructure debt platform to Ares Management Corporation for $428 million.

AMP share price snapshot

While 2021 may not have been AMP’s year, the new year has started in a better light. At the time of writing, the company’s share price is trading at $1.01, up 1.51 on yesterday.

In the past month, the AMP share price is up 6.3%, while it has gained 0.5 this week. AMP has a market capitalisation of more than $3 billion.

The post Why did the AMP (ASX:AMP) share price fall 35% in 2021? appeared first on The Motley Fool Australia.

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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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