Viewpoint: Bullish
Real Estate company HomeCo. (HMC) has been on the acquisition trail for its new $1bn REIT, the business has been accumulating a health hub and child care centres while at the same time selling a shopping centre in Bathurst. The stocks had a great few years and on valuation of 24.7x its not overly cheap MM believes this is a year where quality will shine and we can still see +20% upside over the coming year.
The local market fought valiantly on Wednesday to recover from a very shaky start finally closing down exactly -0.5%, although only 31% of the market closed up on the day a strong session across the influential Banking Sector was enough to offset the broad based losses across the tech and resources stocks. The sentiment towards the banks appears to have lifted following yesterday’s RBA comments…
We are conscious of having a low level of resources exposure in the portfolio after taking profits on Coronado Resources (CRN). Panoramic Resources has caught our eye given the significant volatility in the nickel market over recent weeks, with prices only just starting to settle, though at much higher levels than seen throughout 2021. Panoramic is a WA based nickel-copper-cobalt miner that’s just seen its third…
US stocks slipped lower overnight following the hawkish comments from the Fed i.e. Fed Reserve Governor Lael Brainard said the US central bank will continue to tighten policy methodically and shrink its balance sheet at a rapid pace as soon as May. Overall nothing surprising, we all know it’s going to happen but sometimes we just don’t like to hear it and in the case of US stocks….
Yesterday saw the ASX200 surrender most of the days early gains following the RBA’s interest rate decision and accompanying rhetoric but it still managed to eke out a +0.2% gain as the local index inches ever closer to an all-time high, now only 1.3% away. The Tech Sector followed their US peers higher on Tuesday ending the day up +3.15% with every stock in the main board’s sector closing up on the day….
MIN +5.69%: following the surge in demand for lithium, Mineral Resources has announced it will accelerate its growth plans for both the Wodgina and Mt Marion assets. At Wodgina, they’re expecting first production from Train 1 to hit in May, and has now accelerated the resumption of production at Train 2 for first production in July. They also flagged the potential for 2 more trains if the lithium market continues…
US stocks rallied overnight with the tech index gaining over 2% as Elon Musk injected optimism into the embattled sector, the positive sentiment flowed through the major names with Apple (Inc (AAPL US), Amazon.com Inc (AMZN US) and Alphabet (GOOGL US) all advancing over 2% – its been a tough few months for growth stocks as bond yields surged but the sector has now regained over half of the last few months losses.
We’ve started off the first full week of April with a small +0.3% advance courtesy of broad-based gains offsetting a tired looking Banking Sector although the miners and utilities stocks continued to shine as they have through most of 2022 – if the market remains in sync with our roadmap for the year we see no reason to anticipate a significant change in relative sector performance until we do find an…
e-commerce giant Amazon continues to look solid after correcting almost 30% over recent months. This is one large tech name that we believe can test or even make fresh highs over the coming months – note we own AMZN in our International Portfolio.
The USDJPY is testing decade-old highs which we believe will contain the current advance at least for the foreseeable future but longer-term we can see a test of 135 hence pullbacks will be monitored carefully for good risk/reward opportunities.
