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If you haven’t started investing in the ASX and you’re wondering whether it’s worth investing for your retirement, you’ve come to the right place. Here are 3 ASX investing strategies for Australian’s looking to retire in the next decade or so.

An important part of deciding whether to start investing for your retirement is planning how much you’ll need and for how long. Thankfully, the Australian Government provides a handy calculator to do just that.

Have you worked out how much you’ll need for retirement, and you’re not quite there yet? Or maybe you would like to live the high life throughout your retirement, but your savings and super won’t allow it.  

There can be a lot of value in a properly planned, long-term strategy to invest in ASX listed companies. Particularly right now, as low-interest rates and bond prices mean that cash savings accounts and bonds aren’t as prosperous as they once were.

Looking to begin investing for retirement later in life?

The ASX Australian Investor Study 2020 found that of Australians who hold shares in the ASX, 23% only began investing in the past two years. So, you are not alone as a new investor.

Further, 17% of Australians who invest in the ASX are already retired. There’s no deadline by which you must have your foot in the investing door.

3 approaches to save for retirement by investing 

It’s important to note that no investment is risk free and any advice within this article is general. You must take a personal approach to all your investments.

Create a low-risk portfolio and stick to it

If you’re just starting to invest later in life, you won’t want to risk your money more than necessary, especially if you don’t have a long time frame in which to earn back any losses. Therefore, it’s important to protect your nest egg as much as possible. That means diversifying and committing.

Commitment is important because the market is a wave. Your investment will most likely go up and down many times during its life. Don’t let that worry you. The ASX has a track record of general growth (of course, past growth doesn’t guarantee future growth), but particular industries and commodities don’t necessarily. That’s why diversity is important. If you have a little bit of money in many shares, you’re better protected from volatility than if you make big investments in a small number of shares.

Invest in industries that both yourself and experts believe will grow

This approach is slightly riskier than the previous one and research is key. If your plan for investing for retirement was to ‘set and forget’, this is not the strategy for you. That said, it might appeal to more hands-on investors.

It involves using your life experience, knowledge of certain industries and – once you’ve ascertained that some reputable experts agree with you – investing into that which you know best. This approach requires some balance. You need to have found a niche, but you likely want that niche to be relatively stable. For instance, someone who is knowledgeable on the lithium-ion battery technology and mining sectors may have been able to predict its recent value surge and capitalise on it.

One easy way to invest in a niche is to find a relevant exchange-traded fund (ETF) that tracks a particular sector.

Remember: No matter how sure you are, you’re still probably safer to diversify your investments and EFTs offer a level of diversification over investing in individual stocks.

Invest in dividend-paying shares

If neither previous option sounds like your cup of tea, there is a third approach. Investing in dividend shares is not a clear-cut growth strategy, but if done right may support you through retirement.

Dividends are a proportion of a company’s profits that are paid back to shareholders. Because that money isn’t reinvested into the company, it tends to slow down growth. That said, growth or loss is never guaranteed in the share market, but neither is a dividend. Most dividend-paying companies pay out a dividend every 6 or 12 months, but they can pay more or less often. In fact, they don’t have to pay at all. Also, the amount that reaches your pocket from dividends is likely to be unstable as it reflects a company’s profits and whims.

You can plan to invest in enough dividend shares to pay a sort of ‘wage’ during retirement. If that sounds like it would work for you, you probably want to invest in companies with a strong history of paying out regular, increasing dividends. That way you’re less likely to get caught out with inflation later on.

More reading

• Crown (ASX:CWN) share price on watch after receiving takeover approach
• Why the A2 Milk (ASX:A2M) share price is under pressure in 2021
• 2 ASX REITs to grab (and 2 to avoid): fundie
• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• 2 exciting ASX growth shares to buy now

Motley Fool contributor Brooke Cooper 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 Crown Resorts Ltd (ASX: CWN) share price will be one to watch closely on Monday.

This morning the casino and resorts operator confirmed that it has received a takeover approach.

What did Crown announce?

Crown announced that on Sunday it received an unsolicited, non-binding, and indicative proposal from a company on behalf of funds managed and advised by The Blackstone Group and its affiliates.

According to the release, Blackstone has made an offer to acquire all of the shares in Crown by way of a scheme of arrangement at an indicative price of $11.85 cash per share. This indicative price will be reduced by the value of any dividends or distributions declared or paid by Crown.

Blackstone’s offer represents a 20.1% premium to Crown’s last close price of $9.86. Though, it is worth noting that it is still lower than its pre-COVID levels.

The release notes that the proposal still is subject to a number of conditions. These include due diligence, the arrangement of debt finance, a unanimous Crown Board recommendation and a commitment from all Crown Directors to vote in favour of the proposal, approval from Blackstone investment committees, and the execution of a binding Implementation agreement.

The latter incorporates several terms and conditions including a condition that Blackstone receive regulatory confirmation that a Blackstone-owned Crown is considered a suitable person to continue to own and operate its gaming licences and other gaming-related approvals.

What now?

The Crown board has advised that it has not yet formed a view on the merits of the proposal but will now start its assessment. This will take into account the value and terms of the proposal and other considerations.

Crown’s board will also engage with relevant stakeholders including regulatory authorities.

In light of this, it has advised shareholders that they do not need to take any action in relation to the proposal at this stage. It also warned that there is no certainty that the proposal will result in a transaction.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why ASX 200 hospitality shares could be about to enjoy a boost
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Exploring the golden window of opportunity for ASX ESG investors
• The Crown Resorts (ASX:CWN) share price shakes off Moody’s credit decision

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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 A2 Milk Company Ltd (ASX: A2M) share price is under pressure in 2021. Shares in the Aussie milk company are down 27.5% this year and continue to slide lower.

There have been a few key factors driving the share price lower including the coronavirus pandemic, China sales channels and New Zealand recession fears.

Slowing China sales put A2 Milk share price under pressure

A2 Milk has been one of the top performers in the S&P/ASX 200 Index (ASX: XJO) for a number of years.

One contributing factor to this has been the success of A2 Milk products in the daigou sales channels. Daigou refers to cross-border exporting of goods, where individuals send a product (like A2 Milk infant formula) from overseas back to China.

Daigou channels have helped A2 Milk to capture significant market share in the Asian market. However, slowing sales combined with increased trade tensions between Australia and China have put the A2 Milk share price under pressure this year.

Shares in the Kiwi dairy group continued sliding to a new 52-week low last week. That came as fears of a New Zealand recession reared their head during the week.

According to the New Zealand Herald, a slow vaccine rollout, further threats of lockdown and continued border closures are putting economic growth under pressure and worrying investors.

The A2 Milk share price fell as low $8.33 per share on Friday – a new 52-week low. That is a far cry from the $20.05 per share valuation seen as recently as July 2020.

Foolish takeaway

The A2 Milk share price has been under pressure in 2021 after a tearing run in the last five or so years. Investors will be watching closely to see if the company’s valuation continues to slide in 2021.

The company’s shares closed at $8.45 per share on Friday with a $6.3 billion market capitalisation.

More reading

• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• 5 things to watch on the ASX 200 on Monday
• These were the best performers on the ASX 200 last week
• These were the worst performers on the ASX 200 last week
• ASX 200 dips, Sydney Airport falls, AGL rises

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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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A rise in long-term bond yields in recent weeks whacked share markets down globally. 

But yield-sensitive stocks like real estate investment trusts (REITs) were especially pummelled.

The S&P/ASX 200 A-REIT Index (ASX: XPJ), to demonstrate, is down nearly 7% since 29 December.

But individual stocks within the REIT sector were not treated the same, according to Pengana Capital fund manager Amy Pham.

“Consistent with market trends, the steepening yield curve favoured ‘value’ stocks such as Scentre Group (ASX: SCG) and Vicinity Centres (ASX: VCX) over ‘growth’ stocks such as Goodman Group (ASX: GMG) and Charter Hall Group (ASX: CHC), despite the divergence in fundamentals witnessed over the reporting season.”

The reporting season for REITs was a real “mixed bag”, she said.

“The majority of REITs provided earnings guidance, with the exceptions being the large retail REITs such as Vicinity, Scentre, and Unibail-Rodamco-Westfield (ASX: URW).

“A number of REITs provided upgraded financial year 2021 earnings guidance, including GMG raising its FY21 year-on-year guidance by 3% and CHC increasing its FY21 guidance by 4%.”

Rotation to value shares have gone overboard

Pham’s team believes the rotation to value shares has gone too far and they’ve now “overshot valuations”.

“Scentre, for example, since rebasing its distribution to 14 cents per share, is now yielding 5% (instead of 8% on FY19 distributions) and is no longer attractive compared to its REIT peers,” Pham said.

“Goodman and Charter Hall, however, which have historically traded at premiums to the market PE, are now trading at discounts.”

Pham urged ASX REITs to now sell off assets to reduce debt.

“This is the time REITs should deleverage their balance sheets to drive earnings growth through acquisitions or developments.”

2 REITs Pham likes, and 2 she doesn’t

Already Pham’s found Goodman and Charter Hall, whose shares are going for cheap, have the strongest balance sheets, with less than 5% gearing.

“They both have strong development pipelines with structural tailwinds driving future demand.”

She cited how Goodman has $8.4 billion of work-in-progress, which is almost double the prior year. Charter Hall has shown its ability to grow funds under management at 30% each year.

“[It] has high recurring fees (no performance fees included in the guidance), a diversified portfolio with a long WALE (weighted average lease expiry) of 9.1 years, and is best placed to grow in the alternatives sector and participate in sale & leaseback transactions.”

Thus Pham’s team is much preferring those two ‘growth’ businesses, as opposed to ‘value’ REITs like Scentre and Vicinity.

“We see continued earnings pressure for large retail REITs — SCG and VCX — with poor operating matrices (significant negative leasing spread of -12 to -15%, sales moving annual turnover of -18%, and low earnings visibility) along with the continued structural shift to online retailing putting pressure on valuations.”

More reading

• 2 ASX shares rated as strong buys by brokers
• 3 of the best ASX shares to buy this month
• Why the Unibail (ASX:URW) share price is edging lower today
• Which ASX shares with ethical values are seeing returns in 2021?
• This ASX company has increased or maintained dividends for 44 years

Motley Fool contributor Tony Yoo 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) broke a three-week winning streak last week to finish in the red. The week was defined by volatility in the ASX tech sector, together with sinking resources shares.

The tussle between the bond market and both the Reserve Bank of Australia (RBA) and the United States Federal Reserve continues to give off fireworks. Last week, the RBA once again indicated that rates will continue to be held at record lows until 2024 at the earliest. Any rises, the RBA stated, would be completely contingent on both a decisive and sustained rise in inflation and a move towards ‘full employment’.

Over in the US, the chair of the Federal Reserve, Jerome Powell, made a similar commitment. Bond investors didn’t listen though. Investors are continuing to price in rate hikes coupled with future inflation.

As a result, rising bond yields continued to play havoc with the ASX, specifically high-growth shares in the tech sector. Shares like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: XRO) remained extremely volatile following a big sell off in US tech shares over the week.

Volatility continues

Meanwhile, ASX resources shares also had a clanger following weakness in commodity prices. Iron ore slipped a few dollars per tonne over the week. But it was crude oil that saw the largest readjustment.

On last week’s weekly wrap, you might remember that Brent crude was going for US$69.22 per barrel. At the time of writing, that same barrel is trading for US$64.33. That’s a pretty big move in just one week.

Predictably, this move saw a bit of a readjustment for resources shares. Woodside Petroleum Limited (ASX: WPL) saw a near-4% slide over the week, while the share price of BHP Group Ltd (ASX: BHP), which also has a large oil portfolio, was hit 6.4%.

ASX banks also had a pretty lacklustre week, with Commonwealth Bank of Australia (ASX: CBA) shares falling more than 2%.

How did the markets end the week?

One thing that can be said about the week is that it had a nice pattern. Monday and Tuesday both saw gains for the ASX 200, 0.09% and 0.8% respectively. Wednesday, Thursday and Friday all saw losses of 0.47%, 0.73% and 0.56% each. This meant the ASX 200 started the week at 6,766.8 points and finished up at 6,708.2 points for an overall loss of 0.87% for the week.

Meanwhile, the All Ordinaries Index (ASX: XAO) started out at 7,014.6 points and closed up at 6,959.6 points, a loss of 0.78%.

Which ASX 200 shares were the biggest winners and losers?

It’s that time of the wrap where we get a little saucier by looking at the winners and losers for the week. As always, let’s start with a salacious look at the losers:

ASX 200 Losers

Worst ASX 200 losers	% loss for the week
Austral Limited (ASX: ASB)	(7.8%)
Nufarm Ltd (ASX: NUF)	(6.8%)
Rio Tinto Limited (ASX: RIO)	(6.5%)
Perenti Global Ltd (ASX: PRN)	(5.8%)

Ship construction company Austal took out last week’s ASX 200 wooden spoon. That was despite no major news out of the company that might cause investors to panic. Austal did, however, go ex-dividend last week, which is the best kind of share price drop an investor can hope for. Austal has a trailing dividend yield of 3.98% on recent pricing, so it’s understandable the exclusion of this dividend would dent the Austal share price.

Next up was chemical manufacturer Nufarm. Nufarm shed a hefty 6.8% over the week, despite no major news out of this company either (or dividend for that matter).

We’ve already talked about the woes faced by ASX resources shares last week and the iron-heavy Rio seemed to cop the brunt of investors’ fears, sliding 6.5%. Rio shares are now down close to 15% over the month of March so far.

Engineering company Perenti was lucky last. Like Austal, we can probably put most of Perenti shares’ fall down to the company trading ex-dividend last week. This company has a trailing dividend yield of 6.64% on recent pricing, so a big fall from an ex-dividend date is to be expected.

Now with the losers out of the way, let’s check out last week’s ASX 200 winners:

ASX 200 Winners

Best ASX 200 gainers	% gain for the week
Collins Foods Ltd (ASX: CKF)	19.1%
Clinuvel Pharmaceuticals Limited (ASX: CUV)	11.8%
Harvey Norman Holdings Limited (ASX: HVN)	9.7%
Link Administration Holdings Ltd (ASX: LNK)	9.3%

Last week’s biggest winner was the Colonel himself! Or more specifically the company which has the rights to the Kentucky Fried Chicken name in Australia. Collins Foods rocketed nearly 20%, despite no major news out of the company. A move like this can sometimes be attributed to a large institutional buyer picking up a big tranche of shares.

Next up was pharma company Clinuvel, which also rose despite no major news or announcements. Clinuvel shares are now up close to 25% year to date.

Harvey Norman was another company that had a top week despite no obvious catalyst. Again, this company is up just a tad over 25% for the year so far, so perhaps investors are betting that the COVID-induced sales bump this company enjoyed last year will continue into 2021.

Finally, we had Link Administration with a 9.3% bump, again despite an absence of major news. My Fool colleague Tristan Harrison recently discussed how Link is proving a popular stock with the fundies at Wilson Asset Management, so perhaps this is behind the company’s moves last week.

A wrap of the ASX 200 blue-chip shares

Before we go, here is a look at the major ASX 200 blue-chip shares as we start another week all over again on the share market:

ASX 200 company	Trailing P/E ratio	Last share price	52-week high	52-week low
CSL Limited (ASX: CSL)	33.7	$253.95	$332.68	$242
Commonwealth Bank of Australia (ASX: CBA)	18.84	$84.71	$89.20	$53.44
Westpac Banking Corp (ASX: WBC)	38.48	$24.52	$25.30	$13.47
Australia and New Zealand Banking Group Ltd (ASX: ANZ)	23.31	$28.23	$29.55	$14.10
National Australia Bank Ltd (ASX: NAB)	23.89	$25.93	$27.10	$13.20
Fortescue Metals Group Limited (ASX: FMG)	7.52	$20.01	$26.40	$9.21
Woolworths Group Ltd (ASX: WOW)	34.72	$38.90	$42.05	$33.82
Wesfarmers Ltd (ASX: WES)	30.52	$50.61	$56.40	$29.75
BHP Group Ltd (ASX: BHP)	25.31	$44.90	$50.93	$25.69
Rio Tinto Limited (ASX: RIO)	14.08	$109.06	$130.30	$76.20
Coles Group Ltd (ASX: COL)	19.7	$15.49	$19.26	$14.95
Telstra Corporation Ltd (ASX: TLS)	21.54	$3.21	$3.54	$2.66
Transurban Group (ASX: TCL)	–	$12.56	$15.64	$9.10
Sydney Airport Holdings Pty Ltd (ASX: SYD)	–	$6.09	$7.49	$4.26
Newcrest Mining Ltd (ASX: NCM)	15.64	$24.20	$38.15	$21.06
Woodside Petroleum Limited (ASX: WPL)	–	$24.11	$27.60	$14.93
Macquarie Group Ltd (ASX: MQG)	22.48	$148.80	$153.50	$70.45
Afterpay Ltd (ASX: APT)	–	$108.30	$160.05	$8.01

And finally, here is the lay of the land for some leading market indicators:

• S&P/ASX 200 Index (XJO) at 6,708.2 points.
• All Ordinaries Index (XAO) at 6,959.6 points.
• Dow Jones Industrial Average Index (DJX: .DJI) at 32,628.97 points after falling 0.71% on Friday night (our time).
• Bitcoin (CRYPTO: BTC) going for US$56,963 per coin.
• Gold (spot) swapping hands for US$1,745 per troy ounce.
• Iron ore asking US$165.58 per tonne.
• Crude oil (Brent) trading at US$64.53per barrel.
• Australian dollar buying 77.38 US cents.
• 10-year Australian Government bonds yielding 1.8% per annum.

That’s all folks. See you next week!

More reading

• Is the NAB (ASX:NAB) share price a buy for dividends?
• 2 high quality ASX dividend shares to buy today
• 5 things to watch on the ASX 200 on Monday
• 3 five-star ASX shares to buy in March
• Top brokers name 3 ASX shares to sell next week

Sebastian Bowen owns shares of Bitcoin, National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited, CSL Ltd., Link Administration Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Collins Foods Limited and Link Administration Holdings 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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Could the National Australia Bank Ltd (ASX: NAB) share price be a buy for dividends right now? Some of Australia’s leading brokers have had their say.

What has been going on recently for the NAB share price?

Over the last six months the NAB share price has gone up by 56% and over the last year it has risen by 87% as it recovered from the bottom of the COVID-19 crash.

The 2020 calendar year saw a large increase in the loan impairment expense for NAB and the other big banks of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

A few months ago it reported its FY20 result which showed $3.71 billion of cash earnings, down 36.6%. Cash earnings were $4.73 billion after excluding large notable items of around $1 billion – down 25.9%. NAB said that credit impairment charges increased 201% to $2.76 billion, and as a percentage of gross loans and acceptances rose 31 basis points to 46 basis points. The full year FY20 dividend amounted to $0.60 per share, which was a cut of 64%.

But the FY21 first quarter trading update was much stronger. It showed cash earnings of $1.65 billion, or $1.7 billion in statutory profit terms. Cash earnings were 47% higher than the FY20 second half quarterly average primarily driven by low credit impairment changes. This was a boost for the NAB share price. 

Year on year, the first quarter cash earnings were up 1%. Though cash earnings before tax and credit impairment charges were down 6%.

One negative thing that NAB did reveal was that the percentage of loans that were over 90 days past due had increased to 1.18% at January 2021, up from 1.01% at December 2020. However, the common equity tier 1 (CET1) ratio continued to increase – it was 11.7% at 31 December 2020.

Management thoughts

At the time of the first quarter trading update, NAB CEO Ross McEwan said:

At an underlying level, performance has been sound in the current competitive, low interest rate environment.

Improving economic and health outcomes in Australia and New Zealand are encouraging, as are the reductions we are seeing an deferral balances. However, there are still a number uncertainties requiring further clarity. These include the impact on customers of ongoing health alerts and measures put in place to contain the spread of COVID-19, and the wind-down of deferral and jobkeeper programs. Supporting customers and keeping the bank safe through this period remains our priorities.

Implementation of our strategy is proceeding well as we invest for the long term and focus on initiatives that make a real difference to our customers and colleagues. While there is still much to do, it is pleasing to see momentum building in our core businesses as we simplify and streamline our processes and policies and enhance our digital offerings.

Is the NAB share price a buy for dividends?

Brokers have been confident about big bank shares for some time, though NAB shares are now close to the price target of several brokers, including UBS which has a price target of $27.

The lower impairment charges were better than what brokers were expecting.

UBS rates NAB as a buy and is expecting the big bank to pay a grossed-up dividend yield of 7.4%. However, whilst Morgans also has a price target of $27, it rates the NAB share price as a hold and expects it to pay a grossed-up dividend yield of 6.7% in FY21.

More reading

• Morgan Stanley bullish on the Westpac (ASX:WBC) share price
• Why the Telstra (ASX:TLS) share price has had a top week
• Is the Commonwealth Bank (ASX:CBA) share price a buy or hold?
• ASX 200 Weekly Wrap: Calm restored to the ASX 200
• ASX share market on watch: Goldman Sachs shares thoughts on inflation and interest rates

Motley Fool contributor Tristan Harrison 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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Looking for growth shares to buy? Then you might want to consider adding the two listed below to your portfolio.

Here’s why they have been tipped as growth shares to buy:

Nearmap Ltd (ASX: NEA)

The first ASX growth share to look at is Nearmap. It is a leading provider of aerial imagery technology and location data services to the ANZ and North American market. 

The company notes that its product allows users to see clear and compelling change over time from aerial imagery and geospatials that are consistently current, and at higher resolution to easily detect and measure even the finest ground features.

Over the 2020s, Nearmap is aiming to deliver annualised contract value (ACV) growth of 20% to 40% per annum. Management expects this to be achieved through its new growth initiatives, geographic expansion, and the launch of new products.

Goldman Sachs currently has a buy rating and $2.75 price target on Nearmap’s shares. This compares to the latest Nearmap share price of $2.14. Goldman believes its technology is market-leading and expects the company to benefit from a sharp economic recovery in the US market after COVID headwinds ease. 

Xero Limited (ASX: XRO)

Another ASX growth share to look at is this cloud-based business and accounting software provider.

Xero has been a strong performer over the last 12 months despite the pandemic’s impact on small businesses. This led to the company recording stellar growth in revenue, earnings, and customer numbers during the first half of FY 2021.

Pleasingly, Goldman Sachs feels the company can continue this positive form for some time to come. The broker notes that the company is well-placed to deliver multi-decade strong growth thanks to its geographic expansion and the monetisation of its app ecosystem.

In light of this, Goldman is very bullish on the investment opportunity here. As such, it has put a buy rating and $157.00 price target on its shares. This compares to the latest Xero share price of $119.94.

More reading

• 5 of the best ASX shares to buy next week
• How to turn $20,000 into $650,000 in 5 years with ASX shares
• When dividends can be a bad thing for an ASX share
• ASX tech shares: A once-in-a-lifetime buying opportunity?
• 2 quality ASX shares to buy for the long-term

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Xero. 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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There could be another big risk on the horizon that could hurt the (ASX) share market.

Global investment bank Morgan Stanley has warned that the world could be close to the reaching the peak point of growth and this could lead to market instability. 

Why would peak growth be a bad thing?

Morgan Stanley’s wealth management chief investment officer (CIO) Lisa Shalett pointed out that positive economic news still points to an improving job market and higher corporate profits.

Ms Shalett also noted that investors are now worrying that economic growth is faster than expected which could mean that the United States’ Federal Reserve decides to lessen its support for the economy earlier than expected.

But a key market risk that is “looming” is the problem that year on year growth rates will be hard to beat again for both the economy and company profit growth. When it seems that the growth rate is slowing, combined with smaller US Federal Reserve stimulus, there could be a hit to the (ASX) share market sentiment.

GDP

One example that Ms Shalett gave was in relation to GDP.

Morgan Stanley is expecting 2021 first quarter US GDP to increase by 8% to 10% – much stronger than a normal year. The second quarter of 2021 could be even better when compared to the COVID-19-affected months of March, April and May in 2020. Plus, the new stimulus will be flowing around the economy. Morgan Stanley thinks that 2021 GDP growth could be around 10%.

But in 2022, growth could slow right down to less than 3% and businesses will also be cycling against strong comparative periods in 2021.

Earnings

Ms Shalett pointed to the fact that Morgan Stanley’s chief investment officer and chief US equity strategist is expecting S&P 500 profits to be up 27% year on year in 2021 – this is apparently seven percentage points stronger than historic peaks.

An increase in capital, wages and materials expenses, as well as a higher tax rate, could hurt profit and mean profit growth is slower in 2022.

Government stimulus

Morgan Stanley is expecting the government to reduce its economic stimulus in 2022, such as a reduced level of bond buying.

Ms Shalett wrote that in 2013 a similar tapering move resulted in interest rates increasing and shares being sold down. Morgan Stanley is also expecting government payments to the unemployed, households, small businesses and states to stop in 2022.

What’s the answer to this with the (ASX) share market?

In conclusion, Ms Shalett advised:

These transitions, which we see arriving as the US economy continues to improve, could cause U.S. equity prices to move sideways, as investors adjust to a slower rate of growth than they had experienced the year before. Keeping a diversified portfolio that avoids big bets on one style, sector or region, may be the best defence when positive rates of change start to slow.

More reading

• 2 high quality ASX dividend shares to buy today
• 5 things to watch on the ASX 200 on Monday
• 2 ASX shares rated as strong buys by brokers
• 3 five-star ASX shares to buy in March
• Got cash to invest? Here are 2 ASX shares to buy

Motley Fool contributor Tristan Harrison 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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Fortunately, in this low interest rate environment, the Australian share market is home to a range of shares that are expected to provide attractive yields to investors in 2021. 

If you’re interested in adding a few to your portfolio, then you may want to look at the ones listed below. Here’s why they could be dividend shares to buy:

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is a leading medical diagnostics company with operations across the world. It could be a dividend share to buy due to its strong business model, attractive yield, and positive performance during the pandemic.

In respect to the latter, Sonic recently released its half year results and revealed a 33% increase in revenue to $4.4 billion and a massive 166% increase in first half net profit to $678 million. While COVID-19 testing was a key driver of this growth, the rest of the business performed positively as well.

This went down well with analysts at Credit Suisse. The broker currently has an outperform rating and $40.00 price target on its shares. Credit Suisse has also pencilled in a 93 cents per share partially franked dividend in FY 2021. Based on the current Sonic share price, this will mean a 2.9% yield for investors.

Woolworths Limited (ASX: WOW)

Another dividend share for investors to consider is Woolworths. This retail giant could be a good option for income investors due to the quality of its portfolio if businesses. These include the eponymous Woolworths supermarket business, BIG W, BWS, and Dan Murphy’s.

Woolworths appears well-placed for growth in the near term thanks to a favourable redirection in spending and consumer habits. Over the long term, its outlook remains just as positive due to its defensive qualities and strong market position.

One broker that is positive on the company is Goldman Sachs. It recently upgraded the retail giant’s shares to a buy rating with a $43.60 price target. The broker is also forecasting a $1.13 per share fully franked dividend in FY 2021. Based on the current Woolworths share price, this equates to a 2.9% dividend yield.

More reading

• Top brokers name 3 ASX shares to buy next week
• When dividends can be a bad thing for an ASX share
• Brokers are bullish about these 3 ASX 200 shares
• 3 top ASX shares rated as buys by brokers
• ASX 200 Weekly Wrap: Calm restored to the ASX 200

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Sonic Healthcare 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a disappointing note. The benchmark index fell 0.55% to 6,708.2 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to drop

The Australian share market looks set to drop this morning following another mixed finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 15 points or 0.2% lower today. On Wall Street on Friday night, the Dow Jones fell 0.7% and the S&P 500 edged slightly lower. A rebound in tech stocks led to the Nasdaq index defying the weakness to record a 0.75% gain.

Crown a takeover target?

The Crown Resorts Ltd (ASX: CWN) share price will be in focus today amid speculation that the casino and resorts operator could be a takeover target. According to the AFR, US investment company Blackstone is rumoured to be interested in acquiring the $6.7 billion casino giant. It reportedly already owns a 10% stake in the company.

Tech shares could rise

Tech shares such as Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) could have a positive start to the week after their US counterparts ended last week strongly. As mentioned above, the Nasdaq index rose 0.75% on Friday night after tech stocks rebounded. In respect to Afterpay, the shares of rival Affirm rose 4% on the Nasdaq on Friday. This could bode well for its shares on Monday.

Oil prices climb

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in a positive fashion after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price climbed 2.4% to US$61.42 a barrel and the Brent crude oil price rose 2% to US$64.53 a barrel. This couldn’t stop oil prices recording a sizeable weekly decline amid concerns over demand and rising inventories.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after the gold price pushed higher on Friday. According to CNBC, the spot gold price rose 0.55% to US$1,719.80 an ounce. This led to the gold price recording its second weekly gain in a row.

More reading

• 3 five-star ASX shares to buy in March
• Top brokers name 3 ASX shares to sell next week
• End of oil price rally fires warning shot for the ASX COVID recovery trade
• 2 ASX growth shares that could be strong buys
• These were the best performers on the ASX 200 last week

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Crown Resorts 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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