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The global investment bank Morgan Stanley has revealed some of the investment trends that it’s watching and that you should know about.

Morgan Stanley, with Australian CEO James Gorman at the helm, is one of the largest investment banks in the world, with a wealth of information and analytics to look at around the world.

It recently unveiled some thoughts about investment trends in 2021 and its thoughts about them. This article will highlight some of them.  

Investment trend 1: Soggy markets and a surging economy

Morgan Stanley is not convinced that this is going to be another strong year for financial markets, even though plenty of investors are expecting a good year for shares.

The investment bank believes that whilst the economy will keep recovering – which could be seen in economic statistics like GDP – it could be less successful for financial markets.

Whilst high levels of government financial support is helping households and businesses ride through the COVID-19 pandemic and the effects, it could lead to inflation and increasing bond yields. We’re seeing some of those worries seemingly play out in global share markets over the last week or two.

Another factor could be that the large increase in household savings (which went into buy assets, like shares) is unlikely to keep going. Household savings could reduce further as spending returns to more normal levels.

Morgan Stanley’s final point about this was that the pandemic was/is viewed as a natural disaster that will fade at some point, and that the end has been priced into valuations.

Investment trend 2: Inflation rates to rise?

The investment bank said that governments and central banks were confident that the financial action, such as quantitative easing and taking on a lot of debt, wouldn’t lead to strong consumer price inflation. After all, inflation hasn’t done much over the last few decades.

But Morgan Stanley pointed out four areas that could lead to inflation returning:

Depopulation: Growth in the global working-age population is falling, and a declining labor supply tends to increase wages.

Deglobalization: Slumping global trade growth since the 2008 financial crisis continues to reduce competition.

Declining productivity: The global decline, driven in part by governments bailing out unproductive companies, raises businesses’ cost and pushes up consumer prices.

Debt: Rising government debt, including trillions to pay for pandemic stimulus packages, could be the jolt that reawakens inflation.

Investment trend 3: A resources recovery

Morgan Stanley suggested that the world may be about to enter a period of stronger resource prices, even though there has been a steady drop of commodity prices over the last century and a half. We could be entering a “boom decade”.

Historically, commodity prices tend to rise when the US dollar weakens, and the US dollar has been weakening in recent months.

The investment bank also pointed out that whilst the prices of many different types of assets have risen over the last year, commodities haven’t, so it could be their turn as they look “hugely attractive”.

Whilst demand looks like it could be strong in the coming period as the global economy recovers, there isn’t that much potential supply because of a low level of investment over the last decade.

Many ASX shares are benefiting from stronger commodity prices at the moment including BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Ltd (ASX: FMG), Mineral Resources Limited (ASX: MIN), Galaxy Resources Limited (ASX: GXY) and Lynas Rare Earths Ltd (ASX: LYC).

More reading

• How to turn $20,000 into $300,000 in 10 years with ASX shares
• ASX lithium shares to get price shock as commodities supercycle charges up
• Shocking photo shows how quickly electric cars could take over
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, Rio chair will leave, Nine gets a new CEO

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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One of the best ways to grow your wealth is by investing with a long term view.

This is because by investing patiently over a long period of time, investors are able to benefit from compound interest.

This is interest on top of interest or, in the case of investing, returns on top of returns.

It explains why a $10,000 investment earning a 10% annual return will be worth $11,000 after one year and then almost $26,000 after ten years.

The millionaire maker stock

One of the best examples of how successful buy and hold investing can be is Dicker Data Ltd (ASX: DDR).

Over the last 10 years, this computer hardware and software distributor’s shares have generated a mouth-watering average total return of 51% per annum.

This means that anyone lucky enough to have invested $25,000 into Dicker Data shares 10 years ago, would now have amassed a small fortune worth $1.5 million.

I chatted with Dicker Data’s Co-Founder and Chairman, David Dicker, recently. Given the incredible returns they have generated, he appeared surprised that the company’s shares were not more widely held and remained somewhat of a secret in the investment community.

Mr Dicker also noted that he’s been adding to his significant stake over the last few years. In fact, the chairman was buying shares on market last year. This saw him increase his holding by 50,000 shares to a total of 60,740,000. That’s a $646 million stake based on the latest Dicker Data share price.

What about the future?

While Mr Dicker acknowledges that the near term is hard to forecast because of COVID-19 uncertainty, he appeared confident on the future. Particularly given its new state of the art distribution centre which opened in February.

This centre increased its available warehouse space by over 80% to 22,965 square metres. This provides space for increased inventory holding and future technology portfolio diversification, giving Dicker Data significant room for growth in the future.

And with industry tailwinds such as cloud computing, the internet of things, and remote working driving increasing demand for computer software and hardware, that excess capacity is likely to be needed eventually.

Whether or not the Dicker Data share price is as successful over the next 10 years, only time will tell.

But given the strength of its business and favourable industry tailwinds, you wouldn’t bet against it.

More reading

• The Dicker Data (ASX:DDR) share price has pumped 47% in 6 months
• Dicker Data (ASX:DDR) share price lower despite record-breaking result

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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Looking for dividend shares to buy next week? Then you might want to take a look at the ones listed below.

Here’s why they could be in the buy zone right now:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket giant. As was widely expected, last month Coles released its half year results and revealed solid growth in both its sales and profits.

Thanks to solid growth across its business, for the six months ended 31 December, the company posted an 8% increase in revenue to $20,569 million and a 14.5% lift in half year net profit to $560 million.

And while the second half will certainly be harder for Coles due to the fact that it is about to cycle the panic buying from a year earlier, it is still expected to deliver full year growth in sales, earnings, and dividends.

This could make it worth considering, especially after the recent pullback in the Coles share price.

Goldman Sachs certainly sees value in its shares at the current level. The broker has a buy rating and $20.70 price target on its shares. It is also forecasting a 62 cents per share fully franked dividend for FY 2021.

Based on the current Coles share price of $15.50, this represents a 4% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that Goldman Sachs thinks is in the buy zone is Telstra. Its analysts were pleased with its half year results and management’s comments on the future.

In case you missed it, Telstra’s CEO, Andy Penn, has set an aspirational target for mid to high single-digit growth in underlying EBITDA in FY 2022 and then further growth in FY 2023. 

In addition to this, the Telstra board maintained the telco giant’s interim dividend and plans to do the same with its full year dividend. This will mean a fully franked dividend of 16 cents per share in FY 2021. Based on the current Telstra share price of $3.10, this equates to a fully franked 5.15% dividend yield.

Goldman Sachs has a buy rating and $4.00 price target on its shares.

More reading

• Why is the Macquarie Telecom (ASX:MAQ) share price down today?
• 2 ASX dividend shares with generous yields
• Australian Primary Hemp (ASX:APH) share price surges. Here’s why.
• 3 reasons why Brickworks is a great ASX dividend share
• 2 ASX shares to buy in March 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 are a few ASX shares out there that are liked by multiple brokers right now.

An individual analyst or broker can be wrong in their opinion about a business. But if plenty of brokers like the same business then perhaps that suggests the business does have some upside potential.

But of course, they could be all wrong collectively. With that in mind, here are two ASX shares that are rated as buys by multiple brokers:

AUB Group Ltd (ASX: AUB)

AUB Group was founded in 1985. It has a number of operations relating to insurance broking, underwriting and risk services. Its broking networks are represented by 104 insurance broking businesses in New Zealand and Australia.

The company is currently liked by three brokers.

One of the brokers that likes it is Ord Minnett, which has a share price target of around $22 for the business. The broker was impressed by the FY21 half-year result and thinks that AUB can beat the guidance that it has set for the full FY21 report.

In that recent result, the ASX share said that underlying net profit after tax (NPAT) went up by 44.2% to $30.7 million, whilst underlying earnings per share (EPS) grew by 43.2% to 41.47 cents.

AUB said that the result was achieved with a mix of underlying organic growth as well as acquisition-derived growth, predominately from the Australian broking division.

Management said that the Australian broking division did well because of recent initiatives that will continue to drive sustainable improvement in revenue and underlying cost drivers.

It also declared a fully franked interim dividend of 16 cents per share, which was an increase of 10.3%.

AUB’s FY21 guidance for underlying net profit is now $63 million to $65 million, representing a 17.9% to 21.7% increase forecast range.

Using Ord Minnett’s profit expectations, AUB Group is trading at 33x FY21’s estimated earnings.

Serko Limited (ASX: SKO)

Serko is an ASX share that provides online travel booking and expense management for the business travel market. Zeno is the name of Serko’s advanced travel management app which uses predictive workflows and a global travel marketplace to assist business travel across the entire journey.

Serko is currently rated as a buy by at least three brokers, including Ord Minnett.

The broker was pleased that the FY21 first half result was marginally higher than its forecast, but it was clear that Serko was going to report a difficult result given all the COVID-19 disruption.

Ord Minnett believes that the Booking.com opportunity will be important for future profit growth.

In the FY21 half-year result to 30 September 2020, which was reported in November, the ASX share said total operating revenue of NZ$5.1 million was down 66% compared to the prior corresponding period. Recurring product revenues were NZ$4.6 million, down from NZ$13.3 million.

The booking volumes fell even more, declining by 77%, being 23% of the volume in the same period a year ago. That rose to a 65% decline for October 2020. Serko reported that Zeno continues to see a higher percentage of transitions, representing around 38% of online transactions in September, up from 25% of online transactions at the end of March 2020.

The compared reported a net loss after tax of NZ$10.1 million for the first half, which was a lot worse than the net loss of NZ$0.9 million in the prior corresponding period.

For the six month period, the net cash burn averaged NZ$1.8 million per month, though the company had a cash balance of over NZ$90 million after a recent capital raising.

More reading

• ASX 200 goes higher, Afterpay sinks, Adbri impresses
• Why is the AUB Group (ASX:AUB) share price rocketing 8% today?
• 3 under the radar ASX small cap shares to watch

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Serko Ltd. The Motley Fool Australia has recommended Serko 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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I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

CSL Limited (ASX: CSL)

Although the CSL share price is trading some distance from its 52-week high, long term investors won’t be too disgruntled. Thanks to its consistently strong performance over the last decade, CSL shares have thoroughly outperformed the market return. This strong form has been driven by its successful research and development investments, the acquisition of the Novartis influenza vaccines business, its sprawling plasma collection network, and strong demand for its immunoglobulins. Over the last 10 years, CSL shares have generated an average total return of 22.5% per annum. This means a $20,000 investment into its shares in 2011 would have grown to be worth just over $150,000 today.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

In FY 2010 Domino’s was operating a total of 823 stores. This comprised 522 stores across the ANZ region and 301 stores in Europe. From these, the company recorded a net profit after tax of $17.8 million. Whereas last month Domino’s released its half year results and revealed that it now operates 2,800 stores across the ANZ, European, and Japanese markets. It also just reported a first half profit after tax of $96.2 million. That’s over five times greater than the full year profit it achieved in FY 2010. In light of this, it will not be a surprise to learn that Domino’s shares have smashed the market over the last 10 years. During this time, they have generated a total return of 30.8% per annum. This would have turned a $20,000 investment into almost $300,000. Pleasingly, management isn’t resting on its laurels and is aiming to double the size of its network later this decade. This could be a sign that these strong returns aren’t ending any time soon.

Fortescue Metals Group Limited (ASX: FMG)

This iron ore producer’s shares have managed to outperform the market over the last 10 years. This has been driven by its increasing shipments and lowering costs. For example, in FY 2010 Fortescue shipped 38.9 million wet metric tonnes of iron ore with cash costs of US$29 per tonne. Whereas in FY 2021, Fortescue is aiming to ship 178 million tonnes to 182 million tonnes with C1 costs in the range of US$13.50 to US$14.00 per tonne. This has led to bumper profit and dividend growth over the period, underpinning a total average return of 15.5% per annum over the 10 years. This means that $20,000 invested into Fortescue shares in 2011 would be worth approximately $85,000 today.

More reading

• Why it could be a good time to buy Domino’s (ASX:DMP) shares
• Outsourced AstraZeneca blockade not an issue for local COVID vaccine rollout
• Thursday’s top performing ASX 200 shares at the end of the session
• CSL (ASX:CSL) share price is now down 12% in 2 weeks
• Why are these ASX 200 healthcare shares sinking today?

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 CSL Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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 Temple & Webster Ltd (ASX: TPW) share price has fallen by 32% since 25 February 2021.

It’s worth taking a second (or first) look at a business when the share price falls so much if the company is generating high levels of growth.

What does Temple & Webster do?

Temple & Webster claims to be Australia’s leading online retailer of furniture and homewares.

It now has over 200,000 products on sale from hundreds of suppliers. Temple & Webster also has a private label range of products which the company sources from overseas suppliers.

The company explains how its system works:

Temple & Webster runs an innovate drop-shipping model whereby products are sent directly to customers by suppliers, enabling faster delivery times and reducing the need to hold inventory, allowing for a larger product range.

COVID-19 impacts

The Temple & Webster share price has been one quite the rollercoaster since February 2021. Between 21 February 2020 and 23 March 2020 it dropped around 50%. It then shot higher by around 570% to $13.70 to the middle of October 2020.

Temple & Webster has seen enormous demand for its online offering since the COVID-19 pandemic began, with consumer shopping habits changing.

3 reasons why the Temple & Webster share price could be interesting

1: Growth continues

Temple & Webster hasn’t seen its demand completely fade away like some other sectors like infant formula. The e-commerce business has continued to experience high levels of customer growth.

Indeed, growth seems to continuing – it gave a trading update that said that year on year revenue growth was 118% for the second half of FY21 to 23 February 2021.

In the first half of FY21 it saw revenue growth of 118% to $161.6 million, earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 556% to $14.8 million and net profit of $12.2 million (up from $2.9 million).

Net profit after tax had an income tax benefit of $0.9 million last year compared to an income tax expense of $2.4 million this year.

Temple & Webster’s customer base continues to rise strongly – active customers went up 102% to 678,000.

2: Increasing profit margins

The various profit margins that the company informed investors about improved over the period. The EBTIDA margin increased by 6.1 percentage points from 3.1% to 9.2%. The fixed costs as a percentage of revenue declined 4.1 percentage points from 11.6% to 7.5%.

Temple & Webster’s gross profit margin didn’t see quite as much of an increase, but that’s not where most of the operating leverage is accruing. The gross profit margin improved from 44.2% to 45.5%.

The company is investing in several areas to improve its margins further. It’s focusing on increasing its online market share, improving efficiencies, smarter pricing, better supplier terms due to scale, making slow investments in fixed costs and it’s being disciplined in its next growth businesses “e.g. international expansion”.  

3: Better valuation from a lower Temple & Webster share price

Temple & Webster is going to continue to invest in itself and grow regardless of whether the share price is higher or lower in any particular month.

However, a lower Temple & Webster share price could mean a better valuation for prospective investors.

According to Commsec, the Temple & Webster share price is valued at 38x FY22’s estimated earnings.

More reading

• 2 COVID-19 amplified ASX shares to buy
• Temple & Webster (ASX:TPW) share price sinks 8% despite 550% profit increase
• These ASX retail shares are smashing sales expectations
• 3 reasons why the Temple & Webster share price could be a buy
• ASX retail shares show strong signs of resurgence 

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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Despite its disappointing finish to the week, the S&P/ASX 200 Index (ASX: XJO) was on form and recorded a decent 0.6% weekly gain over the five days. It finished the period at 6,710.8 points.

Four ASX 200 shares that outperformed the market materially are listed below. Here’s why they were the best performers on the index last week:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price was the best performer on the ASX 200 last week with a 10.2% gain. The banking giant’s shares were given a lift last week when analysts at Goldman Sachs upgraded them to a buy rating with a $29.00 price target. There were a number of reasons for the upgrade, including its balance sheet strength and net interest margin resilience. Rising bond yields also gave bank shares a boost.

Computershare Ltd (ASX: CPU)

The Computershare share price was on form and recorded a 9.3% gain over the five days. This also appears to have been driven by rising bond yields. Computershare’s performance has been impacted by falling interest rates in recent years. So the prospect of higher rates appears to have got investors excited.

BlueScope Steel Limited (ASX: BSL)

The BlueScope Steel share price wasn’t far behind with a gain of 9.2% last week. This appears to have been driven by a broker note out of Ord Minnett. According to the note, the broker has retained its accumulate and $24.00 price target on the steel maker’s shares. It notes that spot prices are currently at very favourable levels. So much so, it suspects the company may have to upgrade its earnings guidance in the near future.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was a strong performer and jumped 8.9% over the period. This may also have been driven by a broker note. At the start of the week, analysts at UBS retained their buy rating and $2.30 price target on the coal producer’s shares. While the broker acknowledges that Whitehaven Coal’s first half result was disappointing, it still sees enough value in its shares at the current level to retain its buy rating.

More reading

• These were the worst performing ASX 200 shares last week
• ASX 200 drops again, Zip sinks, Worley wins
• This was the week that ASX dividend shares proved their worth
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Tilt Renewables (ASX:TLT) share price falls despite wind farm news

Motley Fool contributor James Mickleboro 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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Even though the stock market has rallied since the 2020 market crash, the economic outlook remains very uncertain. Therefore, it could be prudent to seek dividend shares that offer defensive characteristics and a solid track record of paying shareholders a rising passive income.

Furthermore, buying dividend stocks that have improving outlooks could be a sound move. Successful growth strategies implemented by a business can make a very positive impact on the level of shareholder payouts over the long run.

Dividend shares with defensive characteristics

Dividend shares could offer an appealing means of generating a passive income in today’s low-interest-rate environment. However, they can be significantly riskier than other income-producing assets – especially with the challenging outlook that remains in place for the world economy.

As such, buying dividend stocks that have defensive characteristics could be a sound move. It may mean that an investor’s holdings have a greater chance of offering a rising passive income irrespective of economic conditions. This could mean searching for dividend stocks in sectors such as utilities and tobacco, where sales and profitability may be less impacted by the prospects for the economy than other industries.

A track record of dividend growth

Dividend shares that have strong track records of growing shareholder payouts could be relatively appealing. For example, they may have been able to grow, or at least maintain, their shareholder payouts in previous periods of economic turmoil. This could indicate that they have the capacity to adapt their strategies to evolving operating conditions.

The track records of dividend stocks can be easily accessed by searching their annual reports. They show detailed information of their previous payouts, as well as their reasoning behind specific strategy shifts. They could also provide guidance as to how a company has been able to evolve to meet changing consumer tastes, and how it plans to do so in future after what has been a very disruptive period for many industries.

An improving financial outlook

When searching for the most appealing dividend shares to buy today, it could be a good idea to check their growth strategies. This could provide an indication of the likelihood of them being able to increase profitability so they can afford a rising dividend in the coming years.

Clearly, assessing any company’s financial outlook or strategy is very subjective. Even if its prospects seem to be bright, there is never any guarantee that they will produce rising profitability or a growing dividend.

However, through buying such companies, an investor may be able to increase their chances of holding successful businesses that make attractive dividend shares. A wide range of such companies in a diverse portfolio could lead to attractive income returns that grow at a relatively fast pace in the long run.

More reading

• 4 ways to make your money work harder in 2021
• These were the worst performing ASX 200 shares last week
• Should you buy ASX shares in this volatility? Here’s Morgan Stanley’s view
• 2 COVID-19 amplified ASX shares to buy
• Why the Murray River Group (ASX:MRG) share price lifted today

Motley Fool contributor Peter Stephens 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 last 12 months has seen huge changes to the way we live our lives due COVID-19 and the associated impacts. There have been lots of changes in the money world too.

A few months ago, money website Canstar published a piece that the average household is saving around $854 a month according to ME Bank, which equates to about $10,250 a year. A lot of individuals (26%) are saving up to 10% of their after tax income each month and 7% of people are saving more than 40%. However, 21% of people aren’t saving anything.

Canstar then raised the question of how much should you save? It went on to say:

How much you should save really depends on your circumstances. Things like your employment history, your current debt levels, where you live and your short- and long-term goals and timeframes are some of the factors that could influence this.

There are a number of budgeting models you might like to consider. One well-known model is the ‘50/30/20 rule’, which was popularised by US Senator Elizabeth Warren. According to the rule, you should divide your after tax income into three parts: 50% for needs (like rent, food, utilities and transport), 30% for wants (such as new clothes or dining out) and 20% for your savings or to pay down debt.

How can you improve your savings rate?

Every household’s money circumstances are different. Some may have high levels of spending on the basics, whereas others may have a low level of spending. And then there’s wide differences when it comes to income as well.

Less than a month ago, Citi shared seven ways that people can reach their savings goals. Earning more and spending less are two of the key factors for people, so Citi shared some of the following tips:

Start a budget

Citi suggested downloading an online budgeting tool, such as the one provided by Moneysmart. Budgeting can lead to opportunities to find ways to improving savings. It can also help you ensure that you don’t forget about any particular expenditure that’s going to occur.

Separate your rainy day fund from your savings goal

Another point was about ensuring that if you have a savings goal that you create a plan on how to get there. For example, if you plan to go on an annual vacation then a smart way to save could be to split that savings goal into 12 equal monthly amounts throughout the year.

In terms of an emergency fund, Citi suggested that people should have at least three to six months of income set aside.

Could you make extra money?

‘Make extra money’ may sound like it’s easier said than done, particularly in this current uncertain economic environment.

Citi made the point that your existing job could be the main way to increase your earnings through training and boosting your skillset. This could make you the best candidate for a promotion.

There are also plenty of other options to consider such as AirBnB, selling items on eBay or car-sharing on Car Next Door, according to Citi.

Cut wasteful spending

This last tip is about being mindful about spending with money.

Citi pointed out that Aussies spend billions of dollars of things that we don’t end up using such as food, clothes, gym memberships and so on. It could be an idea to review these types of spending, whilst ensuring that you get value for money, not just a ‘bargain’.

More reading

• These were the worst performing ASX 200 shares last week
• Should you buy ASX shares in this volatility? Here’s Morgan Stanley’s view
• 2 COVID-19 amplified ASX shares to buy
• Why the Murray River Group (ASX:MRG) share price lifted today
• UK antitrust agency investigating apple over app store practices

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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Last week was a very volatile one for the S&P/ASX 200 Index (ASX: XJO). However, despite a poor finish to the period, the benchmark index recorded a weekly gain of 0.6% to end at 6,710.8 points.

Four ASX shares that were unable to follow the index higher last week are listed below. Here’s why they were the worst performers on the ASX 200:

IDP Education Ltd (ASX: IEL)

The IDP Education share price was the worst performer on the ASX 200 last week with a 13.6% decline. This appears to have been driven by a number of factors. One of those was its shares trading ex-dividend for its interim dividend on Thursday. In addition to this, profit taking after some very strong gains appears to have weighed on its shares. Especially given the concerns about rising bond yields.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price wasn’t far behind with an 11.9% decline over the five days. Investors were selling Gold Road and other gold mining shares last week after rising bond yields put pressure on the gold price. This led to the S&P/ASX All Ords Gold index falling a disappointing 6% over the period.

Cimic Group Ltd (ASX: CIM)

The CIMIC share price was out of form last week and dropped 11.2%. This was despite the engineering company revealing that its UGL and CPB Contractors businesses have entered into an early contractor involvement contract with CuString. The agreement is for works relating to the Copperstring 2.0 project.

IGO Ltd (ASX: IGO)

The IGO price was a poor performer over the five days and tumbled 9.5% lower. Investors were selling the nickel, gold, and lithium producer’s shares despite analysts at UBS putting a buy rating and $8.00 price target on them. Weakness in gold and nickel prices sent investors to the exits last week. At one stage, the latter was down 16% in the space of just one week. This was driven by concerns over rising nickel stockpiles and higher supply.

More reading

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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 Idp Education 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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