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Australia has been crowned the best-performing equities market in the world since 1900.

The finding came in the latest Credit Suisse Global Investment Returns Yearbook 2021 report, released Friday.

It reported that Australia came out on top among 23 countries over 121 years in US dollar terms.

In local currency terms, Australian shares returned a real return of 6.8% per year since 1900, to come a close second after South Africa.

“We also rank second lowest in terms of volatility,” said Credit Suisse Australia private banking chief investment officer Andrew McAuley.

“Australia has achieved this remarkable outcome due to a number of factors. The sectoral composition of the market has played a key role as the world economy transformed and progressed over the past 121 years. Financials, materials and health are the largest segments of the Australian equity market.”

In real dollar terms, the Credit Suisse report found $100 invested in 1900 in the Australian market would now be worth $280,600.

Credit Suisse Australia head of equities Mark Davis attributed Australia’s success to “strong fundamentals”.

“A healthy and resilient services economy, a commodities sector linked to the growth economies of Asia, and our robust banking sector, all of which is supported by a flexible monetary set up, a long standing democratic political system that has the full support of the majority of our population, and a transparent legal and regulatory framework.”

For similar reasons, the New Zealand share market also performed well, coming in fourth in performance since 1900. It returned 6.5% per annum in New Zealand dollars.

How the Australian share market fits into the global scene

The Australian share market, which is currently dominated by ASX Ltd (ASX: ASX), used to be split into smaller exchanges in each of the states. The ASX was formed in 1987 after a merger of the state capital city exchanges.

The Aussie market is now the ninth-largest internationally. The United States still accounts for more than 56% of the global market capitalisation. Japan takes up 7.4%, China has 5.1% and the UK is fourth with 4.1%.

In a world far more globalised than 120 years ago, Australian shares represent an attractive destination for both foreign and local capital, according to Davis.

“The just completed Australian company reporting season, for example, represents the fastest company earnings recovery in ASX history, with aggregate earnings revised upwards by 6%.”

Internationally, shares were the best performing long-term investment instrument over the last 121 years, returning 5.3% per annum in real US dollar terms. Bonds returned 2.1%.

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• How to turn $20,000 into $1 million in 10 years with ASX shares

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 Neometals Ltd (ASX: NMT) share price is looking a little low on charge this morning after the company announced a memorandum of understanding (MOU) for its battery recycling capabilities.

Following the announcement, shares have ticked down 2.7% to 36 cents. However, the Neometals share price is still up over 105% in the last 6 months. 

Steps in the right direction

Through Primobius (Neometals’ joint venture with SMS Group), Neometals has entered into a non-binding MOU with the Japanese multinational company known as Itochu Corporation. Non-binding MOU’s are quite loose agreements, but it indicates that Neometals is making progress towards an established battery recycling company.

The announcement specified that the MOU provides a framework for establishing a corporation for battery recycling. Primobius’s role would then be contributing its lithium battery processing capabilities.

Formally, Itochu will assess Primobius’ technology by providing stationary energy storage batteries to Primobius’ demonstration plant. From here, Primobius (Neometals/SMS Group) will run the demonstration plant on Itochu’s provided batteries to hopefully produce recycled products.

The goal is that Neometals will successfully recycle cathode materials that can then be reused by Itochu in its battery manufacturing. The advantageous outcome would be a subsequent drop in the cost of the batteries made.

What’s the timeline?

Based on the details of the announcement, Neometals is already in discussions with Itochu to prepare the demonstration plant. The demonstration plant, which will be evaluated by Itochu and be the make or break, is slated to kick off in the June quarter of this year.

Neometals plans to proceed with legally binding agreements in the future to formally outline what the company’s cut of proceeds from any recycled batteries would be.

Today’s announced MOU is effective until 31 December 2022.

Neometals share price recap

The Neometals share price has been on a tear over the past year. Any shareholder that remained steadfast would be sitting on returns of 123% in the last year.

As interest grows in the electric vehicle (EV) space, many have been turning to investments to benefit from the boom. A big hindrance for EVs still is the high cost of the battery component. If Neometals can help reduce that by implementing a cost-effective recycling technology, they could gain traction.

Based on the current Neometals share price, the company now has a market capitalisation of $202 million.

More reading

• Future proofing: Should you invest in a sustainable ASX portfolio?
• Here’s why the Neometals (ASX:NMT) share price is running higher

Motley Fool contributor Mitchell Lawler 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 Fonterra Shareholders Fund (ASX: FSF) share price is on the rise today, up 1% in morning trade.

This comes after the dairy co-operative lifted its Farmgate Milk Price for the second consecutive month. Fonterra last raised its forecast on 3 February.

Why did Fonterra raise its milk price forecast again?

Fonterra shares are gaining after the co-op raised its Farmgate Milk Price. The strong demand for New Zealand dairy is largely driven by increased demand from China.

In this morning’s ASX release, Fonterra increased its 2020-21 forecast Farmgate Milk Price from NZ$6.90–7.50 to NZ$7.30–7.90 per kilogram of milk solids (kgMS).

Farmers receive the middle of this range, which has increased by 5.5%, from NZ$7.20 to NZ$7.60 per kgMS.

The co-op said its 60-cent price forecast range reflected “continued uncertainties in the global dairy market”. Atop COVID-related uncertainties, milk supplies in the United States and European Union will begin to increase as their milking season starts up.

At the new forecast price, Fonterra said its milk price payments could contribute more than NZ$11.5 billion to the Kiwi economy this year.

Management commentary

Commenting on the increased in its price forecast, Fonterra CEO Miles Hurrell said:

We’ve seen Global Dairy Trade (GDT) prices continuing to increase since February when we last updated on our forecast Farmgate Milk Price and then this week there was the 15% increase in GDT prices.

It’s very much a China demand led story but there is also good demand for New Zealand dairy across South East Asia and the Middle East.

Hurrell said China’s rapid economic rebound from the pandemic has boosted dairy sales in the Middle Kingdom. Part of that increased demand comes from more focus on longer-life dairy products, like whole milk powder.

With a nod to the past year’s COVID related supply disruptions impacting most commodities around the world, he added, “We’re also seeing customers want to buy more of our products than usual to help mitigate the risk of global supply chain delays.

Fonterra will provide its full half-year financial results on 17 March.

Fonterra share price snapshot

The Fonterra share price has performed well over the past 12 months, up 29%. That compares to a 7% gain on the All Ordinaries Index (ASX: XAO).

Year-to-date the Fonterra share price is up 14%.

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• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings
• Court rules on Bega Cheese (ASX:BGA) and Fonterra (ASX:FSF) trademark dispute
• Fonterra (ASX:FSF) share price on watch after narrowing earnings guidance
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Motley Fool contributor Bernd Struben 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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Why do bond yields matter to ASX share investors and why is everyone suddenly talking about them? 

What do rising bond yields mean? 

Benchmark United States Government bond yields have been downward trending since late 2018. Yields have managed to plummet from as high as 3.25% in October 2018 to as low as 0.50% in late 2020.  

Record low bond yields mean that investors are forced to seek out higher-risk investments to gain a meaningful return. This translates to a flow of funds from bond markets into higher risk assets such as equity markets. Lower borrowing rates also buoy the economy and encourage greater economic activity from businesses and consumers. 

More recently, bond yields have surged from lows of 0.50% to 1.55% last night. Rising yields have a ripple effect across the economy and the stock market. Higher yields, or interest rates, translate to higher borrowing costs for individuals and businesses. As bond yields inch higher, this could also result in a flow of funds from share markets back into bond markets. 

Furthermore, one of the dangers of record low, near-zero interest rates is that they can inflate asset prices. As bond yields have pushed higher, the sectors that benefitted the most from low yields, such as tech, have been hit the hardest. Meanwhile, cyclical industries and sectors that generate strong cash flows, such as financials, infrastructure and commodities, typically perform better under higher interest rate environments. 

For example, the S&P/ASX 200 Info Tech Index (ASX: XIJ) slumped by more than 10% in February, despite the S&P/ASX 200 Index (ASX: XJO) closing 1% higher. In the last few weeks, the US tech-heavy Nasdaq Composite (NASDAQ: .IXIC) has consistently underperformed the S&P 500 Index (SP: .INX) and the Dow Jones Industrial Average Index (DJX: .DJI).

Household names such as Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOGL) have all been dragging the Nasdaq lower recently.

ASX 200 tech shares slammed

The most richly-valued sector, tech, is arguably the most vulnerable to rising bond yields. This can be evidenced by the sea of red across most tech and growth related shares today. Most notably, the Afterpay Ltd (ASX: APT) share price has slumped nearly 7% to a 3-month low around the $110 level. Meanwhile, other large cap tech shares such as Xero Limited (ASX: XRO), WiseTech Global Ltd (ASX: WTC) and NextDC Ltd (ASX: NXT) have also ground lower. 

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Kerry Sun 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 Alphabet (A shares), Amazon, Apple, and Facebook and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, and Facebook. 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 EcoGraf Ltd (ASX: EGR) share price is racing higher following a favourable decision by the Australian Government. During late-morning trade, the graphite producer’s shares are up 5.8% to 63.5 cents.

Let’s take a closer look at what EcoGraf updated the ASX market with today.

What did EcoGraf announce?

The EcoGraf share price is on the move today as investors appear excited about the company’s progress.

In its announcement, EcoGraf advised that the Australian government has approved Major Project Status for the company’s battery anode material facility.

Located in Western Australia, the state-of-the-art processing facility when constructed, will produce battery anode material products. This will be treated through the company’s patented purification technology, which eliminates the use of toxic hydrofluoric acid.

In recent times, world governments have adopted new environmental, social and governance frameworks to help transition into cleaner energy.

EcoGraf noted that the Australian government recognises the importance of having a battery anode material facility in the country. Domestic production not only contributes to the growth of the critical minerals industry but also promotes other project developments.

It worth noting that this will be the first battery graphite processing facility to be established outside of China.

Words from the managing director

EcoGraf managing director Andrew Spinks commented on the favourable outcome:

We are delighted to receive this support from the Australian Government as our development is positioned as an integral part of the downstream modern manufacturing of battery and critical minerals in Australia.

EcoGraf’s development strongly aligns with recent legislative policy changes in Europe that require higher standards of environmental and social governance (ESG) in battery supply chains.

Unprecedented investment is currently underway to establish self-sufficient and sustainable battery manufacturing supply chains to support the electric vehicle industry.

EcoGraf share price snapshot

The EcoGraf share price has rocketed over 900% in the past year and is up an astonishing 252% year-to-date. The surge reflects growing investor confidence within the lithium-ion industry and company itself.

Based on the current valuations, EcoGraf commands a market capitalisation close to $273 million.

More reading

• The Ecograf (ASX:EGR) share price plummeted 17% today
• Why is the Ecograf (ASX:EGR) share price on a wild ride today?

Motley Fool contributor Aaron Teboneras 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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ASX travel shares, including Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT), have taken a serious beating from the coronavirus pandemic.

Both companies plummeted to 52-week lows on 19 March last year and have struggled to recover as travel restrictions took hold and Australia and the world went into lockdown.

Over the past 12 months, the Flight Centre share price is still down 45.5%. The Qantas share price has gained more ground, but it still has another 2.9% to go to reach where it was a year ago.

Credit Suisse plugs Qantas and Flight Centre

According to today’s Australian Financial Review (AFR), Credit Suisse has positions in both Qantas and Flight Centre.

Here’s what Credit Suisse Private Banking portfolio manager Mike Jenneke had to say: 

These companies have very good hibernation strategies and that will see them through the present downturn. The vaccine news is positive and there’s risks obviously but when it’s safe to do so, it will recover.

Demand is pent up and we think we’ll see a pretty significant rebound in travel. These kind of stocks will be volatile but we think there is an overall opportunity there.

Struggling to touch pre-pandemic numbers

The AFR notes that while the S&P/ASX200 Index (XJO) has regained ground, the Qantas share price is 30% lower than pre-pandemic levels. AFR estimates that the Flight Centre share price is 60% lower.

Senior portfolio manager of American Century Investments, Brent Puff, said that since the air services industry was one of the hardest hit by COVID, he sees opportunity.

Mr Puff recently added Booking Holdings Inc (NASDAQ: BKNG) to his portfolio. He believes that the Booking.com business has a far way to recover and that pent up travellers will resume their regular habits once the vaccine widely circulates. 

Foolish takeaway

While ASX travel shares and the air services industry, in particular, put themselves back together in the aftermath of COVID, analysts see opportunity in the recovering companies. The expert advice to savvy investors is to keep an eye on updates on the vaccines and changes to travel restrictions.

More reading

• Flight Centre (ASX:FLT) share price drops despite UK update
• The latest ASX shares that brokers have upgraded to “buy”
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• Is the Qantas (ASX:QAN) share price a buy?
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings

Gretchen Kennedy owns shares of Flight Centre Travel Group Limited and Qantas Airways Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Booking Holdings. The Motley Fool Australia has recommended Booking Holdings and Flight Centre Travel 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 Ioneer Ltd (ASX: INR) share price fell hard on open this morning and is down 12.5% at the time of writing.

The lithium-boron producer emerged from a 2-day trading halt today, which it had requested pending the release of details regarding a capital raise.

What did Ioneer report?

The Ioneer share price is tumbling in morning trade after the company reported it had completed an $80 million placement.

Citing strong demand from its current shareholders alongside new investors, Ioneer increased the fully underwritten institutional placement from the initially planned $60 million up to $80 million.

Ioneer said it had strong backing from high-quality international institutions with cornerstone investment provided by BNP Paribas Energy Transition Fund.

The new capital will be put to work to speed up the development of Ioneer’s Rhyolite Ridge Lithium-Boron Project, in the US state of Nevada.

New shares will be issued at 38 cents, some 14% below the 44-cent closing price on Tuesday, the last day of trading before the company entered a trading halt. Ioneer said it expects the new shares to be issued and start trading next Wednesday 10 March.

A word from management

Commenting on the $80 million placement, Ioneer managing director Bernard Rowe said:

We are extremely pleased with the exceptionally strong reaction for our capital raising, which demonstrates the high quality of the Rhyolite Ridge Project based on the support from high quality domestic and international investor groups.

Rhyolite Ridge remains the most advanced and highest quality lithium project in the US, and with these additional funds we look forward to rapidly closing out a number of key value-adding milestones over the course of 2021 as we move quickly towards production and becoming a major part in the US lithium supply chain.

Ioneer share price snapshot

Despite this morning’s falls, Ioneer shares have gained 126% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 7% over that same period.

Year to date, the Ioneer share price is up by 37%.

More reading

• Why the Ioneer (ASX:INR) share price is in limbo today

Motley Fool contributor Bernd Struben 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 Lithium Australia NL (ASX: LIT) share price is sinking on Friday despite the release of a positive announcement.

In morning trade, the lithium company’s shares are down a disappointing 4% to 12.5 cents.

What did Lithium Australia announce?

This morning Lithium Australian announced that its LieNA pilot plant has been given the green light.

According to the release, LieNA is a caustic conversion technology with strong parallels to the production of alumina from bauxite. The process can produce a range of lithium chemicals, including hydroxide, carbonate, and phosphate.

Management notes that lithium phosphate is the preferred product, as it is easy to refine. It also commands a price premium over hydroxide or carbonate and is the ideal precursor to the production of lithium ferro phosphate (LFP) batteries.

LFP is a safe, low-cost type of lithium-ion battery (LIB) which is the fastest growing sector within the LIB market.

What’s next?

Management has advised that pilot concentrate is now being prepared from spodumene-bearing drill chips.

Furthermore, the construction of critical pilot-plant components has begun, with an order for autoclave placed and the initial pilot-plant test run scheduled for September.

Lithium Australia’s Managing Director, Adrian Griffin, appears very optimistic on the LieNA technology.

He commented: “Lithium Australia’s LieNA technology is the pinnacle for hydrometallurgical processing of spodumene, the principal hard-rock source of lithium. LieNA is capable of recovering lithium from fine and/or contaminated spodumene that fails to meet the feed specifications of current converters. It also provides the highest levels of impurity rejection. It is these characteristics that set it apart.”

“LieNA, then, is designed to improve overall recovery and achieve better utilisation of existing resources: it’s about cost reduction, sustainability and maximising the benefit of our critical (and finite) resources,” he concluded.

More reading

• 2 high quality ASX shares to buy for your retirement portfolio
• Why the Evolve Education (ASX:EVO) share price is jumping 8%
• Why the Worley (ASX:WOR) share price is lifting today
• Why the Althea (ASX:AGH) share price is pushing higher today
• Why Tesla stock is stuck in reverse

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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If you’re in retirement or approaching it, you may be looking for ways to boost your income in this low interest rate environment.

But which ASX shares could help you achieve this? Two top options for retirees to look at are listed below. Here’s what you need to know about them:

Collins Foods Ltd (ASX: CKF)

The first ASX share to look at is Collins Foods. It is a quick service restaurant operator with a focus on KFC restaurants. At the last count, the company operated a total of 247 KFC restaurants in Australia and 45 in Europe. It also operates 15 Taco Bell restaurants in the Australian market.

Collins Foods has continued its growth over the last 12 months despite the pandemic. During the first half of FY 2021, it reported an 11.3% increase in revenue and a 15.1% lift in underlying net profit after tax.

Looking ahead, management has plans to continue expanding its KFC network in the future. This is both in Australia and in the European market. The latter is significantly underpenetrated in comparison to the Australian market, which could provide it with a long runway for growth.

UBS is positive on Collins Foods. It currently has a buy rating and $11.65 price target on its shares. UBS is also forecasting a fully franked dividend of 22 cents per share in FY 2021. This represents a ~2.3% dividend yield.

Ramsay Health Care Limited (ASX: RHC)

Another ASX share to look at for a retirement portfolio is Ramsay Health Care. It is one of the world’s leading private healthcare companies with operations across several countries.

Ramsay was hit hard by the pandemic and experienced a significant drop in elective surgeries. However, trading conditions are now improving and the company looks well-placed to benefit from a backlog in surgeries in the near term and increased demand for healthcare services over the long term. 

One broker that is particularly positive on the company’s prospects is Goldman Sachs. Its analysts currently have a conviction buy rating and $75.00 price target on Ramsay’s shares.

It believes its shares are trading at an attractive level. Particularly given its solid earnings and dividend growth potential over the coming years.

More reading

• Why investors are cheering for the Ramsay Health Care (ASX:RHC) dividend
• Is it time to buy these 2 hot ASX healthcare shares?
• Top ASX shares to buy in March 2021
• Why the Ramsay Health (ASX:RHC) share price is up 8% today
• 2 excellent blue chip ASX 200 shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods Limited and Ramsay Health Care 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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Evolve Education Group Ltd (ASX: EVO) shares are on the rise this morning after the company announced it was doubling the number of childcare centres it operates in Australia.

At the time of writing, the Evolve share price has jumped 8.47% higher to $1.28. This compares to the S&P/ASX 200 Index (ASX: XJO) which is currently trading 0.86% lower. The company also made a declaration on its dividend payments.

Let’s take a closer look at what Evolve announced.

What did Evolve announce?

The Evolve Education share price is gaining in early trade after the New Zealand-based company said in a statement to the ASX it intends to acquire ten additional childcare centres in Australia. The total licensed capacity for the new centres is 816 children per day. The contract is conditional on certain criteria being met – like licensing.

The contract stipulates that Evolve must pay the vendor $27.1 million for earnings before interest, tax, depreciation and amortisation (EBITDA) of $6.9 million per annum. Additionally, in the 12 months following the settlement of the contract, if Evolve’s EBITDA totals $8.2 million, then the group will need to pay the vendor an extra $5 million.

Commenting on the deal, Evolve managing director Chris Scott said:

This latest acquisition takes the total number of centres operated by EVO to 116 in New Zealand and 20 in Australia, Minimal additional Support Office costs will be incurred in managing these extra 10 centres.

The company declared the purchases will be funded using available cash on hand. As well, the move “will be earnings per share (EPS) positive from settlement”.

In further news driving the Evolve share price, the company also revealed today that it will resume paying dividends in the final quarter of FY21. Evolve advised that further details will be provided regarding the dividend later this year.

Evolve share price snapshot

In the midst of the COVID-19 pandemic, the Evolve share price hit a 52-week low of 37.5 cents. Since then, Evolve shares, along with the market as a whole, has made a steady recovery. If an investor had bought shares in the company this time last year, they would be sitting on a healthy return of around 64%.

Yet, in 2017, the Evolve share price was trading as high as $4.01. That means the company’s shares would need to surge by more than 200% to reach this level again.

More reading

• Lithium Australia (ASX:LIT) share price lower despite LieNA update
• 2 high quality ASX shares to buy for your retirement portfolio
• Why the Worley (ASX:WOR) share price is lifting today
• Why the Althea (ASX:AGH) share price is pushing higher today
• Why Tesla stock is stuck in reverse

Motley Fool contributor Marc Sidarous 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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