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The BetaShares Asia Technology Tigers ETF (ASX: ASIA) has been a fairly disappointing performer in 2022 thus far. Year to date, this ASX exchange-traded fund (ETF) has lost a painful 26.22% of its value. It has fallen from around $9.40 a unit at the start of the year to the $6.95 we see today.

So it might come as something of a surprise to learn that this fund was in the top three best-performing ASX ETFs of November. Yep, over the month just passed, the BetaShares Asia Tigers ETF rose from $5.68 to the $6.74 price it closed at yesterday. That’s a gain worth an impressive 18.66%.

As it happens, all three of the ASX ‘s highest-performing ETFs last month had large positions in the Chinese markets.

In addition to the BetaShares Asia Tigers ETF, the iShares China Large-Cap ETF (ASX: IZZ) and the iShares Asia 50 ETF (ASX: IAA) both had stellar months too.

This optimism could reflect anticipation that China could, at last, begin to relinquish its long-held and ultra-strict ‘zero-COVID’ policies that the country has stuck to since the start of the pandemic in 2020.

China has been facing rolling protests in recent weeks over its lockdown-happy policies. Those are policies that have been abandoned in most other countries of the world.

So if China does indeed start to open up, is the BetaShares Asia Tigers ETF a good way to play this reopening?

Is the BetaShares Asia Tigers ETF a bet on a reopened China?

Well, let’s look at the fund’s underlying portfolio to gauge this.

So the BetaShares Asia Tigers ETF doesn’t just invest in China and Chinese companies. It is exposed to other countries like Taiwan, South Korea and India as well.

Saying that, almost half of this ETF’s portfolio is weighted towards Chinese and Hong-Kong listed shares. Its third, fourth, fifth, seventh and eighth largest shares are all Chinese. They include names like Alibaba, Tencent Holdings, Pinduoduo and JD.com.

So while the BetaSahres Asia Tigers ETF is not a China pure-play, it is certainly highly exposed to the Chinese markets. The past month has proven that it is a valid investment for anyone looking to potentially benefit from a Chinese reopening. Although perhaps not quite as China-exposed as the iShares China Large-Cap ETF.

But remember, China has to officially reopen first. That is certainly not a given at this point, whatever the markets are hoping for.

The post Is the BetaShares Asia Technology Tigers ETF (ASIA) an ASX buy for China’s reopening? appeared first on The Motley Fool Australia.

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More reading

• Want to know what the 3 top performing ASX ETFs in November have been?
• 3 quality ETFs for ASX investors to buy this month

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JD.com and Tencent. The Motley Fool Australia has recommended Betashares Capital – Asia Technology Tigers Etf and JD.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Xero Limited (ASX: XRO) share price has started the month strongly.

In afternoon trade, the cloud accounting platform provider’s shares are up 5% to $74.31.

Why is the Xero share price charging higher?

As well as getting a lift from a strong showing in the tech sector on Thursday, the Xero share price has received a boost from a bullish broker note.

According to a note out of Citi, its analysts have retained their buy rating and $97.90 price target on the company’s shares.

Based on the current Xero share price, this implies potential upside of almost 32% for investors over the next 12 months.

What did the broker say?

Citi notes that Xero’s rival Intuit (the owner of QuickBooks) has released a quarterly update and highlights that “Intuit expects digitisation to be a bigger driver than macro for online accounting.”

It also points out that Intuit’s performance in Australia has been weak, which bodes well for Xero. It commented:

The interesting takeaway from Intuit’s 1Q23 result was the divergence in regional performance, with Intuit calling out strength in North America and weakness in Australia whereas Xero pointed to macro weakness in North America and strength in ANZ in its recent result. This likely reflects the relative strength of the players. Intuit calling out macro weakness in UK does support Xero’s view that UK was being impacted by macro in the Sep half. While this could raise concerns on Xero’s guidance for subs growth to pick in up in 2H in UK, we see Making Tax Digital deadlines as a tailwind.

Overall, we see positive read-throughs for Xero given Intuit noted that digitisation rather than macro is a key driver of Quickbooks’ performance, while pricing continues to be rational. With subs growth set to improve and margins set to benefit from slowing headcount growth, we reiterate our Buy call.

The post Xero share price hurtles higher on bullish broker note appeared first on The Motley Fool Australia.

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More reading

• Stock market correction: A once-in-a-lifetime chance to get rich?
• 5 ASX 200 shares with juicy gross profit margins
• ‘Buy it for 5 years’: Jun Bei Liu’s 3 best ASX shares for 2023
• Top ASX shares to buy in December 2022
• Could these be the best ASX tech shares to buy now for 2023?

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Warrego Energy Ltd (ASX: WGO) share price has been on fire over the past month. The company’s valuation has been boosted significantly thanks to a flurry of takeover interest.

Today, shares in the natural gas explorer are holding near their 52-week high as Warrego releases its response to the latest offer to come its way.

At present, the Warrego Energy share price is sitting at 25.5 cents apiece — representing a monumental increase of 82% when compared to a month ago. Meanwhile, the bigger end of the energy town is floundering in an otherwise green day of trade.

So, what offers do Warrego shareholders have to pick from now?

Energy giants go to war for Warrego

This morning Warrego Energy released an announcement addressing the latest takeover offer flung its way.

The 23 cents per share bid from Gina Rinehart’s Hancock Prospecting is the third entrant into the race. According to the release, the offer is being considered by the Warrego board and an update will be made in “due course”.

Only yesterday, reports of Hancock Prospecting achieving its second-largest profit result in its history were doing the rounds. The mining and agriculture behemoth was said to have recorded a staggering $5.8 billion net profit. However, this result is approximately 20% below its previous year, being dragged down by weaker iron ore prices.

If Hancock Prospecting were valued on the same price-to-earnings (P/E) ratio as fellow iron ore miner Fortescue Metals Group Limited (ASX: FMG), the private company would be worth a gargantuan $38 billion.

Notably, the bid from Hancock beats out the next best proposal by 3 cents a share. The former highest bidder was fellow ASX energy name, Beach Energy Ltd (ASX: BPT). Prior to Beach, Strike Energy Ltd (ASX: STX) kicked off the action with a proposal that valued the Warrego Energy share price at 18.6 cents.

According to Credit Suisse analyst Saul Kavonic there’s a possibility that shareholders could see former frontrunners take another stab at winning Warrego. Furthermore, Kavonic pointed out the likelihood of even more would-be acquirers that have yet to throw in an offer.

Where has the Warrego Energy share price come from?

Like most ASX energy shares, this year has been exceptionally kind to the Warrego Energy share price. Shares in the company have now exploded by 112% since the start of 2022 after the recent rally.

Heightened interest could be gravitating toward natural gas explorers and producers amid the burgeoning energy demand.

According to Mckinsey, gas will be the strongest-growing fossil fuel between 2020 and 2035. Enticing the value proposition, the global consulting firm forecasts gas to be the only fossil fuel to grow past 2030.

Based on the current Warrego Energy share price, the company now holds a market capitalisation of $311 million.

The post Warrego Energy share price rockets 80% in a month amid clash of the takeover titans appeared first on The Motley Fool Australia.

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More reading

• Why is the BetaShares NASDAQ 100 ETF (NDQ) having such a stellar run today?
• Why is the Mineral Resources share price rocking an all-time high today?
• Investing in ASX shares? Here’s what the experts expect for RBA rate hikes in 2023
• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
• Why is the Appen share price surging 11% on Thursday?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX shares are having a top day of gains so far this Thursday. At present, the S&P/ASX 200 Index (ASX: XJO) has risen by a healthy 0.85% all the way up to just under 7,350 points. But those gains look rather small in comparison to what’s happening with the BetaShares NASDAQ 100 ETF (ASX: NDQ).

This index-tracking exchange-traded fund (ETF) is rocketing in value today. BetaShares NASDAQ 100 ETF units are currently enjoying a 2.78% surge in value, lifting the fund up to $27.38 per unit.

So what’s behind these pleasing rises this Thursday?

Why is the BetaShares NASDAQ 100 ETF surging in value?

Well, the BetaShares NASDAQ ETF is an index fund that tracks the NASDAQ-100 (NASDAQ: NDX) over in the United States. The NASDAQ 100 is an index that tracks the 100 largest shares on the NASDAQ stock exchange, excluding certain financial companies.

The NASDAQ is well known for being the home of most of the top tech shares on the US markets. Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Tesla Inc (NASDAQ: TSLA) all call the NASDAQ home. As you can tell by their ticker codes.

So as goes the performance of the NASDAQ 100 Index, so goes the BetaShares NASDAQ 100 ETF.

And lo and behold, the NASDAQ 100 had a stellar night last night in US trading. The iIndex finished the session up a rather extraordinary 4.58% to back over 12,000 points.

That’s a two-and-a-half-month high. These gains were spurred by the likes of Apple rising close to 5%, Alphabet soaring more than 6%, and Tesla rocketing an incredible 7.67%.

So the BetaShares NASDAQ ETF was always going to have a cracking day. Why isn’t it rising by 4.58% like its index, though?

Well, the BetaShares NASDAQ ETF houses assets priced in US dollars. But it is quoted in Australian dollars. Thus, currency movements affect its value, alongside the value of its underlying shares.

And while the US markets rocketed overnight, so too did the Australian dollar. A higher Aussie dollar means that US shares become less valuable in Australian dollar terms. So hence the more muted gains we have seen with the ETF.

Nevertheless, there’s no doubt investors are very happy with this ETF today.

The post Why is the BetaShares NASDAQ 100 ETF (NDQ) having such a stellar run today? appeared first on The Motley Fool Australia.

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More reading

• Why Tesla stock hit the accelerator today
• Is Apple a must-own US stock in 2023?
• 3 reasons to buy Amazon stock right now
• 3 ultra-popular stocks billionaires have been busy selling
• Down 17%, is Apple stock a buy now

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. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Microsoft, Netflix and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Netflix, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mineral Resources Limited (ASX: MIN) share price is having a top run today.

Mineral Resources shares are up 2.1% and are currently fetching $89.255. This is an all-time high for the company. Earlier this morning, Mineral Resources shares hit $89.72 before slightly retreating.

Let’s take a look at what is going on with the Mineral Resources share price.

Mineral Resources share price lifts

Mineral Resources is not the only ASX 200 mining giant in the green today. BHP Group Ltd (ASX: BHP) shares are also up 2.2% today, while Rio Tinto Limited (ASX: RIO) shares are lifting 3.47%.

Mineral Resources has three iron ore hubs in Western Australia. The iron ore price lifted 1.25% overnight to US$101.15. Hope that China may shift away from its COVID-19 zero strategy appears to be impacting investor sentiment.

Commenting on the iron ore price, ANZ economist John Bromhead said in a research note:

Iron ore was dragged higher as sentiment was buoyed by the apparent shift in China zero-COVID strategy. However, weakness in the property sector persists. New home sales by the 100 biggest producer developers dropped by 26% y/y to CNY559bn in November, according to CRIEC data.

Mineral Resources is also exploring lithium and aims to become a top five hydroxide producer. The lithium hydroxide price is fetching US$85,000 a tonne on the London Metal Exchange. One lithium analyst recently tipped lithium hydroxide prices to reach $100,000 a tonne.

In quarter one of FY23, Mineral Resources converted 4,703 tonnes of lithium hydroxide. The company achieved an average realised lithium hydroxide price of US$79,288 a tonne for lithium hydroxide from Mt Marion.

Analysts at UBS have a buy rating on the Mineral Resources share price, my Foolish colleague Tristan reported yesterday. Lithium is used in electric vehicle (EV) batteries. Commenting on EV demand, analyst Dim Ariyasinghe noted near-term risks from China but remains positive on demand. He said:

However, our view on the medium-term and long-term remains positive and has actually increased due to additional policy support for EVs.

Mineral Resources share price snapshot

The Mineral Resources share price has soared 98% in the past year. In the last month, Mineral Resources shares have leapt 98% higher.

For perspective, the ASX 200 has returned more than 1.5% in the past year.

Mineral Resources has a market capitalisation of nearly $17 billion based on the current share price

The post Why is the Mineral Resources share price rocking an all-time high today? appeared first on The Motley Fool Australia.

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More reading

• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
• Can you guess which 3 ASX 200 lithium shares led the charge in November?
• Climate and energy: Analyst tips 2 ASX shares perfectly placed for global crises
• BHP’s bargain? Expert thinks its ASX 200 takeover target could be worth 40% more
• Rio Tinto share price lifts despite lukewarm iron ore outlook

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re investing in ASX shares, you’re well aware of the impact that inflation and fast-rising interest rates have had this year.

Both the All Ordinaries Index (ASX: XAO) and S&P/ASX 200 Index (ASX: XJO) came under selling pressure following May’s interest rate hike from the Reserve Bank of Australia (RBA). That marked the first tightening from the central bank since November 2010.

At the time, the RBA lifted the official cash rate from the all-time low of 0.10% to a still low 0.35%.

Today the rate stands at 2.85%.

And ASX shares have rallied over the past month amid speculation that interest rates might not rise as quickly, or as high, as the market has been pricing in. A view that gained further traction by yesterday’s inflation report from the Australian Bureau of Statistics (ABS).

The ABS reported that the monthly Consumer Price Index (CPI) indicator increased by 6.9% in the year to October 2022. Still high. But less than the 7.3% movement in September.

So, what can investors in ASX shares expect from the RBA as we head into 2023?

What can ASX share investors expect from the RBA?

Two leading experts have rather divergent views on just how high the RBA will raise interest rates in 2023. Depending on who’s correct, ASX shares could underperform or outperform current consensus expectations.

As Bloomberg reports, Andrew Boak, chief economist for Australia at Goldman Sachs, believes the RBA will remain decidedly hawkish in 2023.

Boak expects the RBA will hike rates five more times That would bring the cash rate to 4.1% in May, and put many ASX shares under pressure.

“The 2023 challenge for Australia is to return inflation to an acceptable level without breaking the housing market and precipitating a recession,” he said. He added that the majority of households have enough excess savings to weather the impact of higher rates without crashing the property market.

Coming in with a more dovish forecast is Gareth Aird, head of Australian economics at Commonwealth Bank of Australia (ASX: CBA).

Aird forecasts that the RBA will lift rates to 3.1% when it meets next Tuesday, and then be done with the tightening cycle. He believes the RBA’s focus on keeping the Aussie economy “on an even keel” will keep the central bank from raising rates any further.

If Aird is right, it would likely offer some healthy tailwinds to ASX shares in the early months of 2023.

According to Bloomberg’s survey of economists, the median expectation for the RBA’s terminal cash rate is in 2023 is 3.6%.

The post Investing in ASX shares? Here’s what the experts expect for RBA rate hikes in 2023 appeared first on The Motley Fool Australia.

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More reading

• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
• Is this the start of an ASX 200 Santa rally?
• The A2 Milk share price just hit a 52-week high. What’s going on?
• These were the worst performing ASX 200 shares in November
• Want healthy dividend growth? Why I’d buy this ASX 200 blue-chip stock

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has taken off with a vengeance today. The ASX 200 is presently up a healthy 1.01% to just under 7,360 points. It was even better this morning, with the index rocketing to a new seven-month high of 7,375 points earlier in the session.

It seems that these strong gains have at least partly been spurred by what happened on the US markets overnight.

Last night (our time) saw the US markets go on a tear. The S&P 500 Index (SP: .INX) rose by a whopping 3.09%, while the NASDAQ-100 (NASDAQ: NDX) rose by an even more impressive 4.58%.

These moves came after some bullish comments from US Federal Reserve chair Jerome ‘Jay’ Powell.

As my Fool colleague dug into earlier today, Powell flagged a moderation of US interest rate rises going forward. Powell stated that, “the time for moderating the pace of rate increases may come as soon as the December meeting”.

So it seems we could have just one man to thank for the massive gains we are seeing on the ASX today.

There are many shares doing even better than the ASX 200 today though, with several even clocking new 52-week highs. So let’s dig into seven that have just hit new benchmarks for the year.

Thanks Jay: 7 ASX shares hitting new 52-week highs today

The A2 Milk Company Ltd (ASX: A2M) is one. A2 Milk shares are currently up around 1.7% at $6.30 after hitting a new 52-week high of $6.36 this morning. That leaves the A2 Milk share price up more than 21% over the past month.

We also have Mineral Resources Limited (ASX: MIN). Mineral Resources shares have climbed more than 2% so far this Thursday and hit a new 52-week (and all-time record) high of $89.98 soon after market open.

Treasury Wine Estates Ltd (ASX: TWE) shares are also joining in on the party. Treasury uncorked a new 52-week high of $13.97 this morning, although the shares have since lost a little flavour and are back in the red.

TechnologyOne Ltd (ASX: TNE) shares are another beneficiary of Mr Powell’s optimism. This ASX 200 tech share cracked a new high of $14.22 upon market open this morning – a rather remarkable feat given this company has just traded ex-dividend today.

Financial services company AMP Ltd (ASX: AMP) hasn’t missed out either. AMP was an ASX dog for several years, but seems to have turned around the ship over 2022. The company hit a new high of $1.40 at market open this morning. AMP shares are now up 36.2% in 2022 thus far.

Lower interest rates are catnip for gold, and our next winner is an ASX 200 gold miner in Perseus Mining Limited (ASX: PRU). Perseus shares have touched a new record high of $2.27 today, and are also up around 36% year to date.

Finally, we have ASX 200 travel share Webjet Limited (ASX: WEB). Webjet shares took off at market open this morning, climbing as high as $6.48 – a new 52-week high for the travel company.

So no doubt Jay Powell has more than a few fans on the ASX today,

The post Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday appeared first on The Motley Fool Australia.

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More reading

• Can you guess which 3 ASX 200 lithium shares led the charge in November?
• Why are ASX tech shares having such a cracking run on Thursday?
• Is this the start of an ASX 200 Santa rally?
• The A2 Milk share price just hit a 52-week high. What’s going on?
• These were the worst performing ASX 200 shares in November

Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk, Technology One, Treasury Wine Estates, and Webjet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Appen Ltd (ASX: APX) share price has returned to form on Thursday.

In afternoon trade, the struggling artificial intelligence data services company’s shares are up 11% to $2.96.

Why is the Appen share price on fire today?

The Appen share price has taken off on Thursday despite there being no news out of the company.

However, it is worth noting that the tech sector is rebounding strongly today following a stellar night of trade on Wall Street’s tech-focused Nasdaq index.

Investors were bidding tech stocks higher overnight after the US Federal Reserve suggested that supersized interest rate hikes may now be behind us. This follows promising signs that inflation has now peaked.

It isn’t just the Appen share price that is rising strongly today on the news. Here’s a summary of how other beaten down ASX tech shares are performing:

• The Block Inc (ASX: SQ2) share price is up 6.5%
• The com Ltd (ASX: KGN) share price is up 4%
• The Megaport Ltd (ASX: MP1) share price is up 5.5%
• The Xero Limited (ASX: XRO) share price is up 6.5%

Though, it is worth noting that despite today’s strong gain, Appen’s shares remains down almost 75% since the start of the year.

The post Why is the Appen share price surging 11% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX tech shares having such a cracking run on Thursday?
• Is the Appen share price on the way back up?
• It’s about time you buy this ASX tech share that’s beaten down 75% this year: expert
• Down 75% in 2022, is it time for investors to give up the ghost on this ASX 300 tech share?
• Why is the Appen share price storming higher today?

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen, Block, Kogan.com, Megaport, and Xero. The Motley Fool Australia has positions in and has recommended Block, Kogan.com, and Xero. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is having a cracking day today. At the time of writing, the ASX 200 has added a healthy 0.88%, listing the index to just under 7,350 points. Earlier this morning, the ASX 200 touched a high of 7,375 points, which is the highest level the index has been in seven months.

But zooming out, and the picture still looks a little bleak for the ASX 200. The index remains in the red for 2022 so far, currently down 2.18% year to date.

Today’s pricing leaves the index around 3.7% off of the all-time high of over 7,620 points that we saw back in August last year. Since its pre-COVID peak in February 2020, the ASX 200 is also up by around 3% today.

The reality is that while many ASX 200 shares have lifted meaningfully over the year so far, many others have not.

So yes, banks and miners have been doing exceptionally well this year. Commonwealth Bank of Australia (ASX: CBA) shares are up 5.84% year to date right now. BHP Group Ltd (ASX: BHP) shares have risen by 9.9%.

But Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES) and Macquarie Group Ltd (ASX: MQG) are all nursing steep losses for the year.

In fact, Woolies, Macquarie and Wesfarmers are all down by more than 10% over the year, which puts them in technical ‘correction‘ territory. And that’s just some of the larger ASX 200 shares.

Spare a thought for Xero Limited (ASX: XRO) or Block Inc (ASX: SQ2). These leading ASX 200 tech shares have gone backwards by a painful 49.5% and 44% respectively over 2022.

So we have a real two-speed stock market going here.

Stock market correction or stock market sale?

But this could also represent an incredible opportunity to build wealth. The best investors, such as Warren Buffett, unequivocally love low stock prices. The company has to be of top-notch quality of course. But history shows that big share price pullbacks of quality shares are almost always a rare and lucrative opportunity.

Let’s focus on Xero for a moment. This is an ASX share that, earlier this month, reported revenue growth of 20% for the first half of its financial year (the six months ending 30 September). Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 11%, while total subscribers grew 16%.

Xero reported similar numbers back in its full-year results for FY2022 in May. Yet investors have slashed the valuation of this company by half in 2022.

If Xero ever gets back to its all-time highs of close to $155 a share, investors would enjoy an upside of more than 100% from today’s pricing. This is not guaranteed of course. But it’s arguably likely at some point if Xero keeps putting up numbers like we saw earlier this morning.

The market can give investors once-in-a-lifetime opportunities. Buying BHP shares at over $27 each back in March 2020 was one. Buying Xero today could be another. Or Macquarie. Or Block. History tells us that buying when the crowd is selling is the best way to make money in the share market.

The post Stock market correction: a once-in-a-lifetime chance to get rich? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and Xero. The Motley Fool Australia has positions in and has recommended Block, Telstra Group, Wesfarmers, and Xero. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Westpac Banking Corp (ASX: WBC) share price struggled to gain ground amid the market’s November rally.

That’s despite the S&P/ASX 200 Index (ASX: XJO) bank share posting its full-year earnings last month.

After closing October at $24.11, the stock hit a high of $24.50 in early November and a low of $23.06 just days later, before closing the month at $23.77. That marks a 1.41% fall over the 30-day period.

Comparatively, the ASX 200 lifted 6.13% last month while the S&P/ASX 200 Financials Index (ASX: XFJ) gained 1.14%.

So, what went wrong for the big four bank stock in November? Let’s take a look.

What weighed on the Westpac share price last month?

There was only one thing directly impacting the Westpac share price last month. And boy, was it a doozy.

The bank released its earnings for the 12 months ended 30 September on 7 November.

It posted a $5.7 billion profit – a 4% year-on-year increase; $5.3 billion of cash earnings – a 1% fall; and a 64-cent dividend.

That brought Westpac’s dividends for financial year 2022 to $1.25 per share – marking a 6% improvement.

At the same time, however, its net interest margin slumped 17 basis points to 1.87% despite rising rates.

The bank’s New Zealand segment posted notable growth, with its cash earnings lifting 15% to $1.2 billion. However, that was partially offset by its business segment’s 15% decline in cash earnings, coming in at $918 million.

Of course, its bottom line was also dinted by the previously forecast $1.3 billion impact from notable items, mainly brought about by the sale of its life insurance business.

The bank’s stock tumbled 4% on the back of its full-year results.

Fortunately, the Westpac share price is still able to boast a strong performance over the longer-term despite its November struggles.

It’s currently 11% higher than it was at the start of 2022 and 16% higher than it was this time last year.

For comparison, the ASX 200 has fallen 3% year to date and is 2% higher than it was 12 months ago.

The post Why did the Westpac share price lag the ASX 200 in November? appeared first on The Motley Fool Australia.

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More reading

• The 3 best-performing ASX 200 bank shares in November revealed
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• If you bought $20,000 worth of Westpac shares this year, here’s how much dividend income you’d have
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• These ASX dividend shares have 4%+ forecast yields

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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