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The Woodside Energy Group Ltd (ASX: WDS) share price is up 1.91% to $38.71, as the broader market enjoys a strong run following softer monthly inflation data from the United States.

Woodside has had an absolutely cracking year in 2022. The Woodside share price is currently up 71% in the year to date. This is largely due to energy supply constraints brought about by Russia’s invasion of Ukraine.

Just two years ago, Woodside shares were in a hole.

COVID-19 lockdowns meant global industrial activity and the use of vehicles declined significantly, reducing the need for fuel.

Woodside was a COVID-19 loser for sure. The Woodside share price dropped to about $16 in the market crash in March 2020. It then spent much of the following two years below $25 per share.

So, for those Woodside investors sitting on very healthy capital gains right now, is it time to sell?

Fundie says Woodside share price is a sell

Benjamin Goodwin of Merlon Capital thinks it’s time to cash in on the Woodside share price today.

Goodwin writes on Livewire that his fund has taken profits on a number of ASX energy stocks. These include Woodside, Ampol Ltd (ASX: ALD), Viva Energy Group Ltd (ASX: VEA), and Santos Ltd (ASX: STO).

The fund has also sold down the ASX coal shares of New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC).

Goodwin said:

Having previously identified and invested in the opportunities made available through prolonged underinvestment in traditional energy fuels and invested on the basis of the estimated risk/return trade-offs, we have been steadily reducing exposures as companies in this space have outperformed.

The case to hold… or even buy?

Romano Sala Tenna, co-founder of Katana Asset Management, told my Fool colleague Bernd in a recent interview that he’s bullish on Woodside for dividend income purposes.

Right now, based on today’s Woodside share price, the oil and gas giant is offering a fully franked trailing dividend yield of 11.3%.

Back in September, Woodside declared its highest interim dividend since 2014 at 109 US cents per share.

This was due to a 400% profit surge, in part due to the merger with the petroleum business of BHP Group Ltd (ASX: BHP).

My colleague, Bruce Jackson, points out that Woodside is trading on trailing single-digit multiples.

For the record, the ASX website has Woodside sitting on a price-to-earnings (P/E) ratio of 8.1.

Bruce reckons Woodside has significant future falls in the oil price already reflected in its share price.  

The post This fund has been selling down its Woodside shares. Should you? appeared first on The Motley Fool Australia.

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More reading

• Why these 4 ASX dividend shares stand out from the crowd: fund manager
• 5 things to watch on the ASX 200 on Friday
• Amidst the ongoing tech stock wreck, value shares are everywhere. There’s just one catch…
• Don’t panic! Here are 7 reasons we can avoid a recession: AMP
• Why is the Woodside share price being whittled away today?

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Woodside Petroleum Ltd. 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 Fortescue Metals Group Limited (ASX: FMG) share price is leaping higher on Friday despite no fresh news from the iron ore giant. It’s roaring alongside the broader market in the wake of a ripper session on Wall Street.

The S&P/ASX 200 Index (ASX: XJO) is up 2.57% at the time of writing, while the S&P/ASX 200 Materials Index (ASX: XMJ) has lifted 3.52%.

The Fortescue share price is doing better than that, however. It’s surging 4.74% right now to trade at $17.58.

So, what’s going on with the market and one of its favourite mining stocks on Friday? Let’s take a look.

What’s going right for the Fortescue share price today?

The Fortescue share price is lifting alongside the broader market following the release of softer-than-expected US inflation data overnight and a moderate rise in the iron ore price.

Iron ore futures lifted 0.8% overnight to reach US$88.19 a tonne. Base metals also rose, with nickel leading the way, gaining 5.1%. That might be helping drive the iron ore favourite higher today.

Additionally, the US consumer price index was found to have lifted 0.4% in October and 7.7% over the 12 months prior. That drove gains across Wall Street amid hopes softening inflation could see the US Federal Reserve easing up on rate hikes.

Such international gains are being reflected right across the Aussie bourse today. Indeed, only two ASX 200 materials shares are in the red at the time of writing.

The Fortescue share price is also outperforming its major iron ore-focused peers today.

The Rio Tinto Limited (ASX: RIO) share price is gaining 3.71% right now to trade at $101.95, while that of BHP Group Ltd (ASX: BHP) is up 3.48% at $41.97.

Looking longer-term, however, the Fortescue share price has slipped 11.5% year to date. Though, it has gained 13.7% since this time last year.

Comparatively, Rio Tinto’s stock is up 2% year to date, and that of BHP is down nearly 1%. They’ve both gained around 14.5% over the last 12 months.

Meanwhile, the ASX 200 is down 6% year to date and 3% over the last 12 months.

The post Why is the Fortescue share price launching 5% on Friday? appeared first on The Motley Fool Australia.

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More reading

• Can this help A2 Milk pick up the pieces in China?
• Why have Minerals Resources shares hit two new all-time highs this week?
• 3 reasons I’m still bullish on Fortescue shares
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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 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 All Ordinaires Index (ASX: XAO) is having a cracker of a day today. At the time of writing, the All Ords is up an impressive 2.4% and is back over 7,300 points. But that is nothing compared to the performance of the Zip Co Ltd (ASX: ZIP) share price.

Zip shares have exploded today. The ASX’s largest buy now, pay later (BNPL) share is up an extraordinary 18.4% at the time of writing to 74 cents a share. This comes after Zip shares closed at 62 cents yesterday and opened at 69 cents each this morning.

So what on earth has happened to Zip that has invited this incredible revaluation from investors?

Why is the Zip share price rocketing 18% today?

Well, it’s nothing to do with anything out of Zip itself, it would seem. The company hasn’t released any ASX announcements since the results of its annual general meeting on 3 November. And investors reacted sceptically to the company’s investor presentation at the time.

However, we are seeing ASX tech shares boom in value across the market today. Block Inc (ASX: SQ2) shares are up more than 12%. Megaport Ltd (ASX: MP1) shares have enjoyed a 13% or so rise, and the WiseTech Global Ltd (ASX: WTC) share price is up more than 9%.

This comes after a stunning night on the US markets overnight. As my Fool colleague flagged this morning, the US S&P 500 Index rose by a stunning 4.7% during last night’s trading session. The NASDAQ 100 Index did even better, lifting by a jaw-dropping 7.5%.

These moves came after some better-than-expected inflation figures out from the US economy, which points to the possibility that interest rates might not rise as high as feared.

ASX shares, particularly tech shares, tend to be highly partial to the moves that their US counterparts make at any given time. So with such a strong showing stateside, the ASX was always going to have a good day. That is probably what is happening with the Zip share price this Friday.

Zip was probably in line for some of the best gains due to its miserable performance over 2022 thus far. Even after today’s incredible gains, the company remains down by a painful 82.9% over 2022 year to date.

So this might be why investors are in such a forgiving mood over the Zip share price today.

The post Wowsers: Why the Zip share price is up 18% today appeared first on The Motley Fool Australia.

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More reading

• Down 60% since late July, can Zip shares really ’emerge stronger from challenging times’?
• These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market
• Why is the Zip share price dropping today?
• Zip share price slides despite CEO pinpointing profit timeline
• What could this proposed regulation mean for Zip shares?

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 Block, Inc., MEGAPORT FPO, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended MEGAPORT FPO. 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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Breville Group Ltd (ASX: BRG)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $24.70 price target on this appliance manufacturer’s shares. This follows the release of a trading update at the company’s annual general meeting. Goldman highlights that Breville continues to perform positively thanks to resilient demand for its products in the US and APAC regions. It also likes the company due to its strong position in the at-home coffee market. The Breville share price is trading at $21.28 on Friday.

Computershare Limited (ASX: CPU)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this financial administration company’s shares to $33.52. Morgans was pleased with Computershare’s annual general meeting update. It notes that management has increased its earnings per share growth guidance for FY 2023 to 90% from 55% thanks to rising rates. This has led to Morgans lifting its earnings estimates by 20% for FY 2023 and 35% for FY 2024. The Computershare share price is fetching $26.16 this afternoon.

REA Group Limited (ASX: REA)

Analysts at Credit Suisse have retained their outperform rating but trimmed their price target on this property listings company’s shares to $140.80. Credit Suisse was pleased with REA’s performance during the first quarter. However, it has downgraded its earnings estimates to reflect a sharp drop in listings during October, which has been partly offset by lower costs guidance. The REA share price is trading at $119.86 on Friday afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares shooting the lights out on Thursday
• Goldman Sachs says these ASX growth shares are buys
• Why Magellan, News Corp, REA, and Whitehaven Coal shares are dropping today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. 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 Brainchip Holdings Ltd (ASX: BRN) share price is up by 5.88% this afternoon amid a broader lift in Australian shares as well as US equities overnight.

Shares of the AI company are currently trading for 63 cents apiece.

ASX tech shares are on an absolute ripper on Friday, with the S&P/ASX 200 Info Technology Index (ASX: XIJ) among the best-performing sectors on the ASX. It’s currently up by 3.72%.

Given today’s market action, it should be no surprise that some of BrainChip’s tech peers are also surging higher. Here’s a snapshot of how they’re doing:

• Megaport Ltd (ASX: MP1) up 11.15%
• Novonix Ltd (ASX: NVX) up 9.24%
• Hansen Technologies Limited (ASX: HSN) up 6.25%
• Data#3 Limited (ASX: DTL) up 5.5%
• Nearmap Ltd (ASX: NEA) up 0.73%

Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) is gaining 2.43%.

So why are tech shares like BrainChip doing so well today? Let’s investigate what unfolded for US equities overnight to see if we can piece together the story.

What’s going on with BrainChip?

The Nasdaq Composite (NASDAQ: .IXIC), the S&P 500 Index (SP: .INX) and the Dow Jones Industrial Average Index (DJX: .DJI) all made record one-day gains in US trading overnight, CNBC reports.

The tech-heavy NASDAQ lept 7.35%, its best one-day gain since March 2020.

As my Fool colleagues in the US note, these indices jumped amid optimism that inflation could finally be cooling down by a significant degree.

The Consumer Price Index (CPI) made gains that came in below expectations. The index rose 0.4% from September and ended October 7.7% year over year.

The bigger picture is that with inflation falling, the Federal Reserve may be more inclined to be more dovish in regard to future interest rate hikes, which has an important implication for tech shares especially.

Tech shares like BrainChip are often hit the hardest when interest rates rise, as my Fool colleague Cathryn noted in September.

Rising interest rates reduce the valuation of these shares significantly because they are valued on their future growth prospects.

BrainChip share price snapshot

The BrainChip share price is down 7% year to date but up almost 29% over the past year.

Meanwhile, the ASX 200 is down 4% and 3% over the same timeframes.

The company’s market capitalisation is around $1.02 billion.

The post Why is the BrainChip share price booming 6% on Friday? appeared first on The Motley Fool Australia.

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More reading

• 5 reasons I would avoid BrainChip shares at all costs
• Why did the BrainChip share price pop then drop today?
• Why did the BrainChip share price lose a quarter of its value in October?
• These were the worst-performing ASX 200 shares in October
• Why Brainchip, Bubs, EML, and Fortescue shares are falling today

Motley Fool contributor Matthew Farley 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 Hansen Technologies, MEGAPORT FPO, and Nearmap Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and Nearmap Ltd. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It’s hard to imagine that just a year ago, many notable cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) hit new all-time highs.

In November 2021, the most valuable cryptocurrency, Bitcoin, peaked at around $67,000. Meanwhile, the second-most valuable cryptocurrency, Ethereum, notched an all-time high just shy of $4,900.

That month, the market cap of the cryptocurrency asset class reached a collective value of over $2.8 trillion, a new record. But since then, Bitcoin and Ethereum are both down nearly 65% from their highs and the total crypto market cap sits at just over $1 trillion, a fraction of what it once was.

After this kind of obliteration, concerns are likely warranted. If you’re a new crypto investor, this is likely your first time witnessing a price decline of this magnitude. Welcome to crypto.

The overall trajectory of cryptocurrencies has climbed over the past decade. Still, it seemed all hope might just be lost in some brutal stretches. Let’s take a look at some of those rough patches to put the current one into a little better context. 

Seasons come and go

One of the first crypto bear markets occurred throughout most of 2014 and 2015. After the asset class hit a new market cap all-time high of more than $15.5 billion in December 2013, a slow descent ensued over the next two years and bottomed around $3.7 billion in May 2015, a 75% decrease.

During that same period, Bitcoin lost 80% of its value and went from around $1,100 to just a few hundred dollars.

Yet prices returned to new highs by January 2018. The total crypto market cap reached more than $827 billion and Bitcoin hit a price of almost $20,000, jumps of 22,000% and 9,400%, respectively. 

Those highs were short-lived, like many market tops, and a crypto winter gripped the market for all of 2018. After finding a bottom around January 2019, the crypto market cap had shed 80% of its value and fallen to just over $100 billion. In a similar fashion, Bitcoin lost more than three-quarters of its value. 

But by November 2021, those woes of 2018 were all but forgotten. In a matter of about two and a half years, the crypto asset class hit a new all-time high of around $2.8 trillion and Bitcoin reached more than $67,000. 

Crypto investors now find themselves in a similar situation to years past. Since that peak, the crypto market cap has lost more than half of its value, and Bitcoin is down nearly two-thirds from where it once was. 

The point is, crypto has been here and done that. Not just once, but three times. And each past decimation has been followed by a considerable rally. 

Lessons to be learned

Investors shouldn’t act with certainty and think that just because it happened once, it will happen again, but they can use data to make informed decisions.

And the data shows that historically, investors have the most to gain when crypto and Bitcoin lose around two-thirds of their value.

In addition, the data shows that the return to new highs is not an overnight process. Nor will it happen in a year. It usually takes about two to three years before new highs are made. This isn’t to give you a sense of false hope but rather serve as advice to keep a long-time horizon. 

Hindsight is always 20/20, but imagine if you invested at the absolute bottom of each one of these past bear markets.

A $1,000 investment in Bitcoin when it was worth just a few hundred dollars in 2015 would have been worth more than $90,000 by 2018. A similar $1,000 investment at the 2019 market bottom, when Bitcoin was worth just over $3,200, would have grown to around $20,000 by November 2021. 

Investors today need to keep a few things in mind when navigating these tumultuous times. First, maintain a broad time horizon. The true winners of this bear market will be the ones who plan on holding for at least three years and ideally even longer. 

Second, prioritizing cryptocurrencies with a solid track record is a proven strategy to minimize risk and maximize potential.

It isn’t unheard of for a cryptocurrency to be here today and not make it to tomorrow. Investing in “blue chip” cryptocurrencies like Bitcoin and Ethereum is most recommended since they account for more than half of the value in the entire crypto market. 

Finally, consistency is key. Ensuring that you continue to gain exposure by investing regardless of the price is the best way to maximize your potential profits should prices return to new highs. Ignore the day-to-day and week-to-week price fluctuations.

Remember, bull markets make you money, but taking advantage of bear markets can make you rich. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post If cryptocurrency prices continue to plummet, what should you do? appeared first on The Motley Fool Australia.

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More reading

• Why did the Bitcoin price just hit 2-year lows?
• Why Ethereum crashed today
• Why Bitcoin and Ethereum were down big on Tuesday morning
• This one trend could send Bitcoin even higher
• Ethereum and Bitcoin price crash spells the end for these Aussie crypto ETFs

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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ASX mining stock OD6 Metals Ltd (ASX: OD6) is storming ahead again today.

The rare earth explorer’s share price has risen 176% from 23 cents at market close on 9 November to the current share price of 63.5 cents.

So why is this ASX mining stock having such a good day?

Rare earth discovery

This ASX mining stock has been surging since it released “outstanding assay results” at the Splinter Rock Project in Western Australia.

OD6 Metals discovered widespread, thick, clay hosted rare earth element (REE) mineralisation at the project.

This includes grades of up to 6,729 parts per million (ppm) Total Rare Earth Oxides (TREO). Assay results have been returned for 65 drill holes out of a total program of 179 holes.

Today, the company updated the ASX with a corporate presentation. OD6 Metals said it has a “massive landholding” bigger than the ACT.

Describing the potential of its projects, OD6 Metals said:

Excellent concentrations of neodymium (Nd) and praseodymium (Pr), which are essential elements needed for the green economy.

OD6 Metals again highlighted the drilling results reported yesterday. OD6 Metals said the results showed: “outstanding TREO grades, over extensive thicknesses, close to surface, with excellent concentrations of magnetic rare earths”.

The company also noted there is currently an explosion in demand for critical rare earth minerals.

OD6 Metals joined the ASX in June 2022.

OD6 share price snapshot

This ASX mining stock has risen 218.5% in the year to date, while it has soared 243% in the last month.

For perspective, the ASX 200 has shed 4% in the past year.

OD6 Metals has a market capitalisation of more than $31 million based on the current share price.

The post Why has ASX mining stock OD6 Metals rocketed 176% in 2 days? appeared first on The Motley Fool Australia.

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• Guess which ASX mining share just surged 100% on an ‘outstanding’ new rare earths find

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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After a jubilant time on Wall Street overnight, the S&P/ASX 200 Index (ASX: XJO) is following suit on Friday.

At lunchtime, the Australian index was going for 2.75% higher, lifting the mood for all investors.

Even though ASX technology shares were leading the rally, the two biggest telecommunications stocks were underperforming. Telstra Group Ltd (ASX: TLS) shares were up just 1.14% and the TPG Telecom Ltd (ASX: TPG) stock price was 1.55% higher. 

So what’s going on?

A promise that couldn’t be fulfilled

The muted investor enthusiasm might have to do with a federal court ruling that was revealed on Friday morning.

The Australian Competition and Consumer Commission (ACCC) announced it was successful in its court case against the two ASX-listed giants — plus the number two player Optus — in getting them to admit they misled consumers on NBN speeds. 

Telstra was penalised $15 million, Optus $13.5 million and TPG was fined $5 million for breaching Australian consumer law.

The offences related to the companies’ statements about their 50Mbps and 100Mbps fibre-to-the-node plans.

Each telco promised to tell customers within a reasonable time if their actual NBN speeds could not reach the plan they were paid for. The companies all claimed those customers would be offered a slower and cheaper plan with a refund.

That was found to be misleading because none of the companies actually had “adequate systems, processes and policies” to fulfil the promise.

“Some customers may have paid for a 50 or 100Mbps plan believing their NBN connection could support the higher download speeds, even though they would have been better off paying for a lower speed plan,” said ACCC commissioner Liza Carver.

“It is illegal for businesses to make false or misleading representations to consumers about the performance characteristics, nature, standard or quality of products and services.”

Almost 120,000 customers were impacted by the breach across the three internet providers.

According to the consumer watchdog, all three telcos have now implemented remediation programs and contacted affected customers to dish out refunds.

Telstra, Optus and TPG were also ordered to pay a part of the ACCC’s legal costs.

The post ASX 200’s pumping Friday, but Telstra’s not. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Move over ASX dividend share traps, a new investing pitfall could now be luring profit seekers
• Morgans says these top ASX dividend shares are buys
• Why Telstra shares could be ‘worth substantially more’: Morgans
• Why is the Telstra share price trailing the ASX 200 on Monday?
• What is the current dividend yield on Telstra shares?

Motley Fool contributor Tony Yoo 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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 market may be racing higher today but the same cannot be said for the Whitehaven Coal Ltd (ASX: WHC) share price.

In afternoon trade, the coal miner’s shares are down 6.5% to $7.79.

This compares unfavourably to the ASX 200 index and its 2.4% gain.

Why is the Whitehaven Coal share price sinking?

Investors have been hitting the sell button on Friday amid concerns that booming coal prices could attract additional taxes.

With Whitehaven Coal and fellow coal miner New Hope Corporation Limited (ASX: NHC) generating bumper profits while Australians prepare for huge increases in energy prices, the Federal Government is considering stepping in.

When asked about the potential for a new temporary tax on gas and thermal coal, Prime Minister Anthony Albanese commented:

Well, what we know is that we can’t just sit back and watch while energy prices go through the roof for households and for businesses. And that could undermine the manufacturing sector, it’s already placing extraordinary pressure on it. We are trying to work through these issues. We want to work in a cooperative way. But we need to acknowledge that there are extraordinary profits being made at the same time as the customers are really doing it tough.

If this became a reality it would likely lead to lower than forecast earnings and dividends for coal miners. Though, there’s no guarantee that these taxes will be introduced. We’ll just have to wait and see!

The post Why is the Whitehaven Coal share price falling in a hole on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why these 4 ASX dividend shares stand out from the crowd: fund manager
• Here are the 3 most traded ASX 200 shares on Wednesday
• Why Magellan, News Corp, REA, and Whitehaven Coal shares are dropping today
• Whitehaven share price dives 9% as floods hit guidance
• Morgans expects a fully franked 17% dividend yield from this ASX 200 share in 2023

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

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We made it to Friday. Here’s my wrap of the week.

We Will Remember Them

Today, as I’m sure you know, is Remembrance Day.

Remembrance is a sacred duty. It goes beyond the day-to-day. Yes, the ASX is open. So are businesses and workplaces.

But we still take a minute to pause and reflect. To remember those who served, suffered and died in our country’s name, and those of our allies.

I’ve written more about it, here.

We will remember them.

Lest We Forget.

Well, that happened quickly

I was asked on radio yesterday what might happen when the US inflation numbers were released last night. I don’t mind saying that I didn’t have ‘US shares to rise 5.5%’ on my bingo card!

It is, of course, blatantly absurd that a moderate fall in inflation – from ulta-high levels to merely pretty-bloody-high – should see US shares gain the equivalent of half an average year’s returns in a single day.

As in, madness. Ridiculous. Stupid.

But, well, here we are.

No-one’s complaining about the gains, of course (well, other than short-sellers or those who were ‘waiting for the coast to be clear’ and were sitting on cash). But… it’s silly.

Which doesn’t mean lower inflation isn’t good news. It truly is.

And it doesn’t mean that shares weren’t cheap before last night’s rally – I think some of them were.

But it is a rolled-gold example of how much we should take from daily market moves – in either direction: none.

And little more from the actual index levels, too. Remember, markets tell you what they’re thinking and feeling… and that’s not the same as objective valuation.

A fight for energy supremacy

If every dog has its day, perhaps every sector gets its time in the sun.

From what has otherwise been a pretty unappealing and unrewarding recent history, the energy sector is certainly enjoying its time in the sun.

First, it was Mike Cannon-Brookes and North American asset manager Brookfield, who lobbed a bid for AGL Energy Limited (ASX: AGL). Rebuffed, Cannon-Brookes decided to press on as a (large) minority shareholder.

We now know that whatever Brookfield saw in AGL, it also saw in Origin Energy Ltd (ASX: ORG), with the latter now the subject of an $18.4b takeover bid, from a consortium being led by Brookfield.

Great news for Origin shareholders, no doubt. And probably vindication for the management team who were arguing that Origin was being undervalued by the market.

I will be fascinated to see what Brookfield sees in Origin, as this rolls on, and whether their hopes are fulfilled or dashed. One thing, though – private equity mobs aren’t known for their interest in lowering prices for consumers… so we’ll see what comes of this one, if it goes ahead.

Quick takes

Overblown: ‘New normals’ are almost always overdone. Even more so when they assume that some historical experiences are going to be permanently altered. Like, I don’t know, commodity prices. It’s very brave to assume gas prices won’t fall. Or coal. Or, you know, billionaires paying too much for media assets… I’m not saying that buying Twitter is Elon Musk’s ‘Alan Bond’ moment, but I’m not saying it’s not…

Underappreciated: When we recorded this arvo’s episode of the Motley Fool Money podcast, Andrew and I chatted about things happening ‘slowly, then suddenly’ (his phrase), and the fact that disruption is stupidly hard, but when you reach ‘escape velocity’, the strength and size of the incumbents goes from an almost-unassailable advantage to an enormous millstone (my analogy). Whether you’re investing in disruptors, or incumbents, be very wary of these inflection points.

Fascinating: Vanguard’s new Superannuation product has been announced. The fees look cheap, without being dirt-cheap (yet), and there’s some good innovation in the way the products will be both managed and offered. It’s early days, but Vanguard is one of the good guys, and I’m glad they’ll be adding to the competition in this really important sector. (And, for what it’s worth, if you’re someone who doesn’t use an industry fund because you don’t like their union links, this might be well worth looking into as an alternative to – usually higher-fee – retail funds.)

Where I’ve been looking: This is a harder question to answer after today’s market jump! No, not really – even after those jumps, many, many companies are still far below their 52-week highs. I’m not one for ‘screening’, but I’ve been having a look at profitable companies that are growing revenue, and that the market has left behind. It’s not the only place to look – and not every company meeting these criteria will be successful – but there are a lot to choose from, and I think the odds should be good, at prevailing share prices.

Quote: “It’s insane to risk what you have for something you don’t need” – Warren Buffett, on leverage.

Fool on!

The post Elon Musk’s ‘Alan Bond’ moment? appeared first on The Motley Fool Australia.

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More reading

• 5 of the craziest things making news on the ASX this week
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Thursday
• Why Lycopodium, Origin, Perpetual, and Sandfire shares are charging higher
• 3 ASX 200 shares shooting the lights out on Thursday

Motley Fool contributor Scott Phillips 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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