Tag: Stock pick

The iShares Global 100 AUD ETF (ASX: IOO) puts some of the world’s biggest multinational businesses into a single ASX investment.

That includes companies leading areas such as artificial intelligence, cloud computing, financial services, healthcare, and consumer technology.

With so many established global names under one roof, is the IOO ETF a good buy today?

A portfolio of global leaders

The IOO ETF tracks the S&P Global 100 Index, giving investors exposure to 100 major multinational companies from around the world.

I like the focus on businesses that have already built significant global operations.

Major holdings include Nvidia, Apple, Microsoft, Amazon, Alphabet, and JPMorgan.

These companies give the fund exposure to areas including artificial intelligence, cloud computing, digital advertising, ecommerce, financial services, and consumer technology.

There are also businesses outside the technology sector, which gives investors exposure to other parts of the global economy.

For me, one of the advantages is that I do not need to decide which individual global giant will deliver the strongest returns over the next decade. The ETF gives me exposure to a collection of them through a simple ASX investment.

Concentration comes with trade-offs

The IOO ETF is more concentrated than some broad global ETFs.

With around 100 holdings, individual companies can have a greater influence on performance. Its largest positions also account for a meaningful proportion of the portfolio.

I do not necessarily see that as a negative. If I were buying this fund, I would be doing so because I specifically wanted greater exposure to some of the world’s biggest and most established businesses.

But investors should understand that the fund may behave differently from an ETF holding more than 1,000 stocks.

If several of its largest holdings struggle at the same time, performance could suffer.

Why I would buy

What I like most about the IOO ETF is the quality of the businesses it allows me to own without needing to build the portfolio myself.

Many of its holdings have spent years establishing global customer bases, strong brands, valuable technology, or leading positions within their industries.

I think several of them could still be considerably larger businesses a decade from now.

That makes IOO ETF a fund I would be comfortable gradually adding to rather than trying to pick the perfect entry point.

Foolish takeaway

So, would I buy the IOO ETF now? Yes, I would.

I like the opportunity to own a focused collection of major global businesses through one ASX investment.

The portfolio is relatively concentrated, and some of its biggest holdings are not cheap, so I would expect plenty of volatility along the way.

But for an investor prepared to hold for years, I think the companies inside IOO give the ETF a strong long-term foundation.

The post Should I buy the iShares Global 100 ETF (IOO) now? appeared first on The Motley Fool Australia.

More reading

• You don’t need to own Nvidia to invest in AI – Here are the best Aussie artificial intelligence shares
• This ASX stock could be a surprise winner of the AI boom
• These are the 10 richest people in the world in September
• ASX shares investors are getting younger and trading more often: CBA report
• Want to invest in AI shares? Here’s how to do it on the ASX

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Grace Alvino 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 Alphabet, Amazon, Apple, JPMorgan Chase, Microsoft, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are 7,484,000 ‘lost’ superannuation accounts being held by super funds or the Australian Taxation Office (ATO) today.

Lost super can take a few different forms.

The most common is forgotten super accounts that are inactive, or in other words, are not receiving employer or personal contributions.

They can also be super accounts with old contact details, making it impossible for the super funds to contact their owners.

Super funds will often hand these accounts over to the ATO, and the ATO will go about trying to reunite people with their money.

Altogether, these 7.484 million accounts are worth a staggering $21.2 billion.

How people lose track of their superannuation

Aussies can lose track of their superannuation if they have had to set up a new super account each time they’ve changed jobs.

This was commonplace prior to 1 July 2005, when the norm was for employers to select a single superannuation provider

Then the law changed to allow employees to nominate their preferred fund. This enabled their super to move with them.

Forgetting to update your contact details with your superannuation fund is another way super gets lost.

It’s less common these days given people tend to keep their mobile numbers, and to a lesser extent their email addresses, for life.

But before mobile phones and email existed, it was easy for workers to move house, which meant changing both their address and landline phone number, and forget to let their superannuation fund know.

It’s therefore more likely that most lost super accounts belong to older Australians nearing or already in retirement.

Couple reunited with $1M they didn’t know they had

Last year, the ATO returned more than $1.1 billion in unclaimed super through consolidations and direct payments to individuals.

Consolidations involve transferring money from several superannuation funds into one.

It’s surprisingly easy to do online at ATO online services, which you can also access through your myGov account.

ATO Deputy Commissioner Ben Kelly said many Australians did not realise they had lost superannuation.

He recounted a story whereby the ATO reunited a married couple approaching retirement with more than $1 million in lost super.

That lost super changed their lives.

It’s not just about reclaiming a lump sum of money that is yours.

It’s also about ending the opportunity cost of money not being invested appropriately for your stage of life.

Many workers take the default ‘balanced’ option with their superannuation because it sounds sensible.

However, ‘growth’ or ‘high growth’ strategies may be more appropriate, especially if they are young.

Kelly said:

The average amount in lost super is around $41,000.

Depending on your age, this could grow to hundreds of thousands of dollars if you put it to work for your retirement where you want it.

Think of lost super as lost opportunities – finding it now could help maximise your savings in retirement.

There’s another cost to not keeping track of your superannuation.

If you have multiple lost super accounts, you are also paying multiple account fees and possibly multiple insurance premiums, which are eating away at your retirement savings.

The ATO says about 4 million Australians have more than two superannuation accounts. The norm is to only have one.

Find your lost superannuation

Follow the ATO’s super health check to find out if you have lost super.

If you have multiple accounts, the instructions will help you choose a fund to become your sole fund moving forward.

They also explain how to arrange the transfer of all superannuation monies held in multiple accounts into your new fund.

Follow the instructions in the link above to update your contact details and your nominated beneficiary, too.

The post Are you one of 7.5 million Aussies with an average $41,000 in lost superannuation? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy this ETF instead of picking 20 ASX shares
• 2 ASX passive income ideas I’d use to generate $400 a month in 2027
• Here’s the average Australian superannuation balance at 50 and 55
• How much can Australian pensioners own and earn under new rules starting next week?
• Want $50,000 a year in retirement? Here’s how much superannuation you may need

Motley Fool contributor Bronwyn Allen 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.

I enjoy researching individual companies and deciding which ASX shares I want to own.

But stock picking is not for everyone.

For an investor who wants a simpler way to build wealth over the long term, I think there is another option worth considering.

Building a portfolio takes work

Owning one or two ASX shares leaves a portfolio heavily dependent on what happens to a very small number of businesses.

To build reasonable diversification with individual stocks, I would be looking at roughly 20 companies spread across several industries.

That is certainly possible, but it also creates work.

I would want to understand why I owned every company, follow its results, keep an eye on management decisions, and decide whether anything had changed enough to reconsider the investment.

Some investors enjoy doing that. Others may have little interest in spending their spare time reading annual reports and company announcements.

For those investors, an exchange-traded fund (ETF) can make the process considerably easier.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The VGS ETF would be one of my preferred choices.

With a single investment, the fund provides exposure to more than 1,000 stocks across developed share markets around the world.

That immediately spreads an investment across many more businesses than I could realistically research and own individually.

It also takes me well beyond the opportunities available on the ASX.

Australia has plenty of excellent listed companies, but there are enormous global industries where the biggest businesses are based overseas.

Through this Vanguard ETF, investors can gain exposure to companies operating across technology, healthcare, industrials, consumer products, financial services, and many other parts of the global economy.

The portfolio also stretches across countries including the United States, Japan, the United Kingdom, and major European markets.

I don’t need to find every winner

This is probably the part I like most for someone who does not want to pick stocks.

Individual investing requires making choices. I could buy an ASX share that looks promising today only to discover several years later that a competitor executed better or an industry developed differently from what I expected.

With the VGS ETF, I do not need to work out which individual global companies will eventually become the biggest winners.

Successful businesses can grow into larger positions within the underlying index, while companies that lose ground become less important over time.

There will still be periods when the ETF falls. It owns shares, so investors should expect market volatility.

But company-specific disappointments have far less ability to derail the overall investment when the money is spread across such a large portfolio.

It could make investing easier to stick with

I think there is also something to be said for simplicity.

An investor could regularly add money to the VGS ETF without needing to find a new stock idea every time cash becomes available.

That could make it easier to remain consistent through both strong and weak markets.

Foolish takeaway

I still enjoy choosing individual ASX shares, and I think stock picking can produce excellent results for investors prepared to put in the work.

But it is not a requirement for building long-term wealth.

Rather than selecting and following around 20 individual ASX shares, I think the Vanguard MSCI Index International Shares ETF provides a simple way to own a large collection of businesses around the world with a single investment.

For someone who wants to spend less time researching stocks and more time simply staying invested, I think that is a compelling proposition.

The post Why I’d buy this ETF instead of picking 20 ASX shares appeared first on The Motley Fool Australia.

More reading

• Which ASX ETFs could be top picks for beginner investors?
• Could a $1 million superannuation balance provide $50,000 a year in retirement?
• Are these top Vanguard ETFs still a buy in September?
• What Warren Buffett’s investing style can teach superannuation investors
• How to build a winning ASX share portfolio and create wealth

Motley Fool contributor Grace Alvino 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Certain ASX passive income ideas could be excellent picks to make $400 per month of dividends in 2027.

If dividend income is a key focus, then I’d want to concentrate on names that can provide defensive and even growing payouts.

I like stocks with defensive earnings because they’re more likely to sustain future passive income payouts. Let’s look at two top contenders.

Medibank Private Ltd (ASX: MPL)

Medibank is the leading private health insurance business in Australia with its Medibank and ahm brands.

In my view, the company has defensive earnings because healthcare is an essential service, particularly for older Australians.

Australia’s ageing and growing population gives the company compelling earnings tailwinds in the coming years.

The Medibank annual dividend was hiked by 6.7% in FY26 to 19.2 cents per share, following a 6.7% rise in group operating profit to $813.5 million.

I think the dividend is likely to grow again in FY27 because of the positive outlook comments.

It’s looking to grow market share with resident policyholders, it expects to deliver “solid” gross profit growth with non-resident private health insurance. The Medibank health segment profit is expected to grow 25%, and it continues to look for useful bolt-on acquisitions.

The passive income projection on Commsec suggests the business could pay an annual dividend per share of 21.5 cents in FY27. That would be a grossed-up dividend yield of 6.7%, including franking credits, at the time of writing.

Rural Funds Group (ASX: RFF)

The other ASX passive income idea I want to highlight is this real estate investment trust (REIT) which owns farmland across Australia.

The farms it owns include almonds, cattle, macadamias, cropping, and vineyards. Those properties are spread across Australia’s mainland states, though Queensland and NSW account for most of the Rural Funds portfolio in dollar terms.

I think it’s a pleasing option for passive income because it pays a distribution quarterly, and the distribution yield is solid.

It has maintained its annual distribution at 11.73 cents per unit in the last few years amid high interest rates, which I think is a pleasing record of stability.

I think there’s good scope for future distribution growth because of the rental indexation built into its lease contracts. Some of Rural Funds’ rent grows at a fixed annual rate each year, while a significant portion of the rest grows in line with inflation.

It expects to pay an annual distribution per unit of 11.73 in FY27, which translates into a forward distribution yield of 5.9%.

$400 per month of passive income

I think both of the above businesses are among the top ASX passive income share options. To generate $400 per month, we’re talking about an annual goal of $4,800.

Between them, those two ideas have an average dividend yield of 6.3%, if we include the franking credits. Therefore, with a total investment of $76,191, someone could generate that target dividend amount.

But these aren’t the only stocks I’d choose to buy for dividend income.

The post 2 ASX passive income ideas I’d use to generate $400 a month in 2027 appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $70,000 annual passive income?
• 3 ASX dividend shares with yields over 6%
• How much do I need to retire on $80,000 a year at 50?
• 2 great ASX dividend share buys for passive income in September
• Buy, hold, sell: Medibank Private, Ansell, South32 shares

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There is likely something fun about checking your superannuation in your 50s because the numbers can start moving surprisingly quickly.

By this stage, many Australians have been receiving compulsory super contributions for decades, while a larger balance gives investment returns more money to work with. 

At the same time, retirement is close enough that knowing whether you are ahead, behind, or somewhere around the middle becomes increasingly relevant.

So, what does the average Australian actually have in super at 50 and 55?

The average superannuation balance at 50

The latest figures published by Moneysmart, using Australian Prudential Regulation Authority data, group Australians into five-year age ranges rather than individual ages.

For Australians aged 50 to 54, the average superannuation balance is now $190,500.

That provides the best current guide for someone turning 50, although an individual balance could obviously be much higher or lower depending on income, career breaks, investment performance, and whether additional contributions have been made.

The figure also shows that reaching 50 does not mean the heavy lifting is finished. Someone at the beginning of this age bracket could still have 17 years before reaching Age Pension age, leaving considerable time for further contributions and investment growth.

What about at age 55?

Move forward one age bracket and the average rises meaningfully.

Australians aged 55 to 59 have an average super balance of $234,700, which is $44,200 higher than the average for those aged 50 to 54.

That increase is a good reminder of what can happen during the latter stages of a career. Contributions continue to arrive, while returns are compounding on a larger pool of savings than earlier in life.

For someone turning 55, there may also be opportunities to direct more money towards super if household finances allow, particularly if mortgage repayments or other major expenses have started to ease.

How does that compare with retirement needs?

Moneysmart currently points to an Association of Superannuation Funds of Australia estimate of $630,000 for a single homeowner seeking a comfortable retirement at age 67.

That makes the average balances at 50 and 55 look some distance away from the eventual target, but it is important not to compare them too literally. These Australians still have years of potential contributions and investment returns ahead of them, while couples can also combine their retirement resources.

Housing, other investments, how much you have in your Commonwealth Bank of Australia (ASX: CBA) savings account, expected spending, and eventual Age Pension eligibility can all substantially change how much super someone needs.

For anyone around 50 or 55, the average is therefore best treated as a checkpoint rather than a goal. A balance of around $190,500 or $234,700 shows what Australians in these age groups currently have, but whether it is enough depends far more on where you want to be when work eventually ends.

The post Here’s the average Australian superannuation balance at 50 and 55 appeared first on The Motley Fool Australia.

More reading

• ASX 200 dives to a 6-week low. What’s behind today’s sell-off?
• Is the pullback in Westpac shares a buying opportunity?
• How much do I need to invest in CBA shares for $10,000 of passive income?
• How much passive income can I earn off a $550,000 superannuation balance?
• $10,000 invested in BHP and CBA shares three years ago is now worth…

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.

The value of assets you can own, and the amount you can earn, while still qualifying for the age pension will rise next Sunday.

The changes reflect indexation adjustments, which are made twice per year, to keep up with inflation.

Pension payments will also go up.

Single pensioners will receive an extra $36.80 per fortnight under the inflation adjustments from 20 September.

That will take the full pension payment up to $1,237.70 per fortnight.

Couples will get an extra $27.80 per partner, per fortnight.

That will raise the full pension payment to $933 per partner, per fortnight.

Are you eligible for the age pension?

Australians born on or after 1 January 1957 are eligible for the pension at age 67, whether retired or not.

The pension is subject to an assets test and income test.

If you own or earn too much, you may only qualify for a part-pension, or no pension at all.

Let’s look at the numbers.

How much can you own under the assets test?

Australians will be able to own more from 20 September and still qualify for at least a part-pension under changes to the assets test.

A primary place of residence is excluded from the assets test.

Everything else, including superannuation, ASX shares, bonds, rental properties, and cash, is assessable.

If you rent your home, you are allowed to own more in assets while still qualifying for the age pension.

Under this next round of indexation changes, only the upper thresholds for the assets test are changing.

Single homeowners whose assets are worth less than $333,000 qualify for a full pension.

Single homeowners whose assets are worth between $333,001 and $745,750 (up from $733,500) will be eligible for a part-payment.

Non-homeowner singles whose assets are worth less than $600,000 qualify for the full payment.

Non-homeowner singles who have between $600,001 and $1,012,750 (up from $1,000,500) in assets will qualify for a part-pension.

Couple homeowners whose assets are worth less than $499,000 qualify for a full pension.

Couple homeowners who have between $499,001 and $1,121,000 (up from $1,102,500) in assets will qualify for a part-payment.

Non-homeowner couples whose assets are worth less than $766,000 qualify for the full payment.

Non-homeowner couples who have between $766,001 and $1,388,000 (up from $1,369,500) in assets will qualify for a part-pension.

How much can you earn while still getting the pension?

Australians will also be able to earn a bit more from 20 September while still qualifying for at least a part-pension.

Under this next round of indexation changes, only the upper thresholds for the income test are changing.

Singles who earn less than $226 per fortnight qualify for the full payment.

Singles who earn between $227 and $2,701.40 (up from $2,627.80) per fortnight will qualify for a part-payment.

Couples who earn less than $396 per fortnight qualify for the full payment.

Couples who earn between $397 and $4,128 (up from $4,016.80) per fortnight will qualify for a part-pension.

As usual, a pensioner’s annual investment income (with the exception of rental income) is determined by deeming rates.

The deeming rates will go up on 20 September.

The lower deeming rate will be 1.75% for the first $66,800 worth of assets for singles and the first $110,600 for couples combined.

Everything above these amounts will be deemed to have earned the new upper deeming rate of 3.75%.

The post How much can Australian pensioners own and earn under new rules starting next week? appeared first on The Motley Fool Australia.

More reading

• Here’s the average Australian superannuation balance at 50 and 55
• Want $50,000 a year in retirement? Here’s how much superannuation you may need
• 2 ASX shares I’d buy before they return to their 52-week highs
• Here are the top 10 ASX 200 shares today
• Brent crude oil price jumps 12% amid Houthi bid to control alternative oil route

Motley Fool contributor Bronwyn Allen 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.

A $50,000 annual retirement income sounds achievable, but the amount of superannuation needed to fund it may be higher than many Australians expect.

For someone aiming to retire with that level of income, a $1 million super balance is often cited as a useful benchmark.

But there is no magic number. How long the money needs to last, investment returns, withdrawals and access to other income streams can dramatically change the equation.

Is $1 million in superannuation enough?

The appeal of a $1 million super balance is obvious. A retiree withdrawing $50,000 a year would initially be drawing 5% of their portfolio. The catch is that retirement isn’t simply about dividing $1 million by $50,000.

The money remaining in superannuation can continue to generate investment returns, potentially allowing the balance to support withdrawals for decades. But markets don’t move in a straight line, and poor returns early in retirement can put significant pressure on a portfolio.

Inflation is another consideration. A $50,000 annual income today won’t necessarily provide the same purchasing power 10 or 20 years from now.

That’s why retirees need to think beyond the headline super balance.

Investments could make or break the plan

The way retirement savings are invested can have a huge impact on how long they last.

A portfolio heavily weighted towards cash may provide stability, but could struggle to keep pace with inflation over a long retirement. Meanwhile, a portfolio with substantial exposure to shares can potentially deliver stronger long-term growth, but comes with greater volatility.

For many retirees, the challenge is finding the right balance between generating income and preserving enough capital to fund future years.

The timing of superannuation withdrawals matters too. Taking substantially more than $50,000 in some years could accelerate the depletion of a portfolio, while spending less during weaker market periods may help preserve capital.

Don’t forget the Age Pension

Superannuation also isn’t necessarily the only source of retirement income.

Eligible Australians may receive the Age Pension, depending on factors including their income and assets. That means someone targeting $50,000 a year may not need their superannuation to provide the entire amount.

This can materially reduce the amount of savings required, although eligibility and payment rates can change over time.

The real question isn’t just ‘how much?’

For someone targeting $50,000 a year, $1 million in superannuation could provide a substantial foundation. But whether it’s enough depends on factors including investment performance, inflation, spending habits, retirement age, longevity and other sources of income.

That’s what makes retirement planning tricky: the goal isn’t simply accumulating a particular number. It’s building a portfolio capable of supporting the lifestyle you want without running out of money.

For investors still building their superannuation, the takeaway is potentially encouraging. There are multiple levers to pull, including contributions, investment strategy and retirement timing, that can improve the odds of turning a sizeable super balance into a sustainable retirement income.

The post Want $50,000 a year in retirement? Here’s how much superannuation you may need appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares I’d buy before they return to their 52-week highs
• Here are the top 10 ASX 200 shares today
• Brent crude oil price jumps 12% amid Houthi bid to control alternative oil route
• Stockland shares are sinking 4%. Is this $3.8 million CEO sale a warning sign?
• DroneShield shares are down 75%. Could this huge short bet backfire?

Motley Fool contributor Marc Van Dinther 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.

Some ASX shares are trading a long way below where investors were willing to value them only a year ago.

That doesn’t automatically make them bargains, but I think it can create an opportunity when the long-term business case remains strong.

These are two ASX shares I would be comfortable buying at today’s lower prices.

Cochlear Ltd (ASX: COH)

Cochlear shares are trading around $137.88 at the time of writing, compared with a 52-week high of $303.74. That puts the stock roughly 55% below its high.

I think the size of that fall deserves attention because Cochlear still operates in a market with a significant amount of unmet demand.

The company develops cochlear implants for people with severe hearing loss, yet many potential candidates around the world are never referred for treatment or ultimately receive an implant.

For me, that leaves a long runway even before considering population growth and ageing.

Cochlear also continues to improve the technology itself. Its newer Nucleus Nexa platform gives the company another opportunity to encourage upgrades and make treatment more attractive to future recipients. Longer term, developments such as personalised stimulation, drug-eluting electrodes, and potentially totally implantable devices could continue improving the patient experience.

Healthcare companies can go through periods when growth disappoints or investors become less willing to pay premium valuations. I think that’s where we are right now. But that disappointment won’t last forever.

As such, I would be happy to buy Cochlear at today’s level and give the underlying growth opportunity time to play out.

Nextdc Ltd (ASX: NXT)

NEXTDC shares are also trading well below their previous high.

At around $12.30 at the time of writing, the data centre operator is roughly 31% below its 52-week high of $17.85.

I continue to think the long-term opportunity behind the ASX share is substantial. NEXTDC is investing heavily to expand its data centre network as demand grows from cloud computing, artificial intelligence, and other digital workloads.

What I like is that the company already has a large amount of customer demand contracted before all that capacity has been completed. That gives me more confidence in the expansion strategy.

As new data halls are completed and contracted, and customers begin using them, more of that capacity should start contributing revenue.

There is still plenty to watch. Data centres require enormous amounts of capital, and NEXTDC needs to build efficiently, secure sufficient power, and manage its funding as the network expands. But those are risks I am willing to accept given the scale of the opportunity.

At $12.30, I think investors are getting a much more attractive entry point than they had near the 52-week high.

Foolish takeaway

Neither Cochlear nor NEXTDC needs to return to its previous high for me to be interested today.

I like the growth opportunities behind both businesses, while their much lower share prices give investors a very different entry point from where they traded previously.

If Cochlear keeps reaching more patients and NEXTDC successfully converts its contracted demand into operating data centre capacity, I think both ASX shares have plenty of room to recover over the years ahead.

The post 2 ASX shares I’d buy before they return to their 52-week highs appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• NEXTDC shares are falling despite $1.1 billion funding boost. Here’s why
• You don’t need to own Nvidia to invest in AI – Here are the best Aussie artificial intelligence shares
• NEXTDC secures $1.1bn in convertible notes for data centre growth
• NEXTDC launches $1.1bn convertible notes to fund data centre growth

Motley Fool contributor Grace Alvino 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a torrid end to a horrid week of trading for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Friday.

After three days of selling this week, today’s session made it a fourth, with the ASX 200 opening in red territory this morning and staying there all day. By the time trading wrapped up, the index had slumped another 0.89%, leaving the index at 8,741.2 points as we head into the weekend.

This rough end to the Australian trading week today comes after a tough night up on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn’t playing ball, dropping 0.6%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared similarly, falling 0.65%.

But let’s get back to the local markets now for a look at how the various ASX sectors ended their respective weeks.

Winners and losers

Unlike yesterday’s session, there were some sectors that escaped the selling this Friday.

But first, it was mining shares that were hit the hardest. The S&P/ASX 200 Materials Index (ASX: XMJ) had an awful time of it, plunging 3.68%.

Gold stocks were smashed too, with the All Ordinaries Gold Index (ASX: XGD) tanking by 2.69%.

Tech shares had another shocker. The S&P/ASX 200 Information Technology Index (ASX: XIJ) cratered by 2.05% today.

Healthcare stocks weren’t exempt either, evident from the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 1.24% dive.

Real estate investment trusts (REITs) came next. The S&P/ASX 200 A-REIT Index (ASX: XPJ) was sent home 0.95% lower.

Consumer discretionary shares didn’t get much love, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) dipping 0.7%.

We could say the same for energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) lost an early lead to close down 0.66%.

Our last losers this Friday were communications shares, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 0.08% slip.

Turning to the lucky green sectors now, it was financial stocks that held up the best. The S&P/ASX 200 Financials Index (ASX: XFJ) added a healthy 1.08% to its total this session.

Industrial shares were spared as well, with the S&P/ASX 200 Industrials Index (ASX: XNJ) lifting 0.24%.

Utilities stocks matched that gain. The S&P/ASX 200 Utilities Index (ASX: XUJ) also climbed 0.24%.

Finally, consumer staples shares proved to be a safe haven, as you can see by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 0.04% uptick.

Top 10 ASX 200 shares countdown

Today’s best stock was insurer Insurance Australia Group Ltd (ASX: IAG). IAG shares bounced a decent 4.23% higher this session to close the week at $8.14 each.

This healthy jump came despite no obvious catalysts from the company itself.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Insurance Australia Group Ltd (ASX: IAG)	$8.14	4.23%
Suncorp Group Ltd (ASX: SUN)	$19.61	3.65%
AUB Group Ltd (ASX: AUB)	$27.90	3.33%
Ingenia Communities Group Ltd (ASX: INA)	$3.97	3.12%
Challenger Ltd (ASX: CGF)	$10.23	2.92%
QBE Insurance Group Ltd (ASX: QBE)	$22.68	2.86%
National Australia Bank Ltd (ASX: NAB)	$38.72	2.65%
Viva Energy Group Ltd (ASX: VEA)	$3.04	2.36%
Brambles Ltd (ASX: BXB)	$18.65	2.08%
ANZ Group Holdings Ltd (ASX: ANZ)	$37.27	1.69%

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aub Group and Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Brent crude oil price has soared 12.3% in just a week, and is US$108.17 per barrel on Friday.

ASX 200 energy shares are up 2.7% this week, and sector leader Woodside Energy Group Ltd (ASX: WDS) has gained 3.36%.

The Santos Ltd (ASX: STO) share price has risen 5.05% and Karoon Energy Ltd (ASX: KAR) shares are up 6.32%.

The surging Brent crude oil price follows news that Iran-backed Houthi rebels have seized a key port town in Yemen.

The town, Mocha, lies alongside the Red Sea, which opens into international waters via the narrow Strait of Bab al-Mandeb.

Why does this matter?

The Red Sea has provided an alternative route for oil supply from Saudi Arabia to global markets during the US-Iran conflict.

The US-Iran war has led to the virtual closure of the Strait of Hormuz, the main shipping lane for Middle East oil.

About 20% of the world’s oil and gas supply is shipped from Persian Gulf nations through the Strait of Hormuz to global buyers.

Saudi Arabia is the world’s largest oil exporter and a US ally.

On its east side is the Persian Gulf and Strait of Hormuz. On its west side is the Red Sea and Strait of Bab al-Mandeb.

The Saudis have been piping oil across their territory to the west coast for shipping via the Red Sea.

This alternative oil export route has offset the impact of the prolonged Strait of Hormuz shut down on western nations.

The oil flow contributed to the Brent Crude oil price returning to pre-war levels in June amid hopes of a US-Iran deal.

The Strait of Bab al-Mandeb sits at the southern end of the Red Sea and runs alongside Yemen.

The Houthis want to block passage to give Iran further leverage in its conflict with the US.

Saudi Arabia has been attacked by Iran several times as retribution for US attacks on Iran.

What’s happened this week?

Mocha is the second Red Sea coastal city now controlled by Houthis in defiance of the internationally-backed Yemeni government.

There are concerns they will now move further south and seek to take Dhubab and Perim, which sit alongside Bab al-Mandeb.

Trading Economics analysts said the 12% rise in the Brent Crude oil price was the biggest weekly increase since mid-July.

And with no end to the US-Iran conflict in sight, the oil price may remain elevated for some time.

The analysts commented on Friday:

Top US officials reportedly warned President Donald Trump that the war could continue through the remainder of his term, which ends in January 2029.

Meanwhile, Iranian leaders are reportedly determined to continue fighting despite mounting economic costs, viewing the conflict as an existential threat.

They also claim that Tehran has managed to rebuild its missile capabilities and could intensify attacks on US and Gulf assets if Washington escalates its own strikes.

Fighting has intensified over the past two weeks, with the US targeting Iranian oil tankers while Iran launched missiles at US warships and tankers in the Persian Gulf, as well as American assets in neighboring countries.

The US-Iran conflict has added to inflation in many nations, including Australia, through higher petrol, diesel, gas, and electricity prices.

This week’s dramatic increase in the Brent Crude oil price has raised fears of further interest rate rises in Australia.

This is one of the reasons why the ASX 200 has had such a bad week, falling 3.05% in just five days.

The post Brent crude oil price jumps 12% amid Houthi bid to control alternative oil route appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Friday
• How much superannuation do I need to earn $80,000 per year in passive income?
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares earning strengthened buy ratings this week

Motley Fool contributor Bronwyn Allen 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.