scroll

What influences BHP shares?

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 26/02/2022

What influences BHP shares?

Hi James, I appreciate that MM does not give their clients specific financial advice. I also acknowledge that MM provides stock specific information - to be decided on by their clients but….I question how many investors have recognised that when BHP and it’s associated commodities have a good day the general market sentiment is positive. The opposite all holds true. Perhaps BUY SELL decisions should now factor in how BHP is going to perform on the day. Should MM and their clients rethink or modify their investment strategies now that BHP is unified and such a major contributor to the market’s performance? Thanks and Regards

Answer

Hi,

I believe investors should refrain from getting too close to the day to day, or even week to week, swings in commodity prices and focus on the trend e.g. MM has been long crude oil for months targeting current levels hence we are now considering how / where to reduce our overweight stance.

If you are trading day to day market swings, including the SPI futures, obviously how BHP will trade is important but its active in the US hence we know where its going to open on the ASX every morning – hence to add value you have to watch iron ore in China and other commodities on US futures markets – pretty hard stuff taking on the global prop. traders.

Latest Reports

Alerts 06/12/2024

Trade Alert – International Equities Portfolio

We are taking profit on a bank in the International Equities Portfolio

Afternoon report 06/12/2024

The Match Out: Market momentum fades as the week progressed

Some selling pressure swept across the ASX today with over 70% of the main board finishing lower. We’ve talked about the declining momentum on the upside, and while it’s too early to conclude the bullish trend is over, some consolidation at least wouldn’t surprise.