Viewpoint: Bullish
US stocks enjoyed a solid rally overnight even as bond yields continued to rise, the fact that tech was an outperformer strongly suggests that higher interest rates are built into stock prices at least into Q2 of 2022. Importantly while we are bullish short-term we wouldn’t advocate chasing strength at this stage of the cycle, unlike with the local market we’re not convinced the S&P500 et al will test / make fresh all-time highs this year.
The ASX200 rallied another +0.86% on Tuesday helping it scale fresh 9-week highs, it might surprise many readers to know it’s now less than 4% below its 2021 all-time high – the markets literally had the kitchen sink thrown at it for the last 7-months but only the staunchest bears could argue it hasn’t performed admirably. We only saw 54% of stocks rally yesterday but when the banks remain firm and resources…
US stocks had their recovery stalled yesterday by comments from Fed Chair Powell but considering the volatility of the last few sessions the indices have taken it much in their stride. We remain bullish the tech sector but as we mentioned earlier a few days consolidation wouldn’t surprise, and Feds certainly giving the market something to think about.
Subscribers know that we are looking for a test of $30 by ANZ into its forecast 75c fully franked May dividend but we felt the view needed a little perspective after this month’s 13% recovery by the stock from its low:
Telix Pharmaceuticals Limited is a radiopharmaceutical company focused on the development of diagnostic and therapeutic products using Molecularly Targeted Radiation (MTR) to treat cancer. In MTR therapy, a radionuclide is attached to a targeting agent such as a small molecule or antibody. This targeting agent specifically binds to tumors and delivers a radioactive payload in a selective way. The radioactive payload can either be diagnostic (for imaging) or therapeutic, or both. Its lead programs include TLX591-CDx (Illuccix) / TLX591 for diagnosis and treatment of metastatic castrate-resistant prostate cancer, TLX250-CDx/TLX250 for diagnosis and treatment of renal (kidney) cancer, TLX101-CDx / TLX101 for diagnosis and treatment of glioblastoma (brain cancer), and TLX66-CDx (Scintimun) / TLX66 for the treatment of bone marrow conditioning and rare diseases.
Endeavour Group Ltd is an Australia-based company, which is engaged in the retail drinks and hotels business. The Company’s segments include Retail and Hotels. The Retail segment is engaged in procurement and manufacture of drinks for sale to customers in Australia. Its Hotels segment is engaged in provision of goods and services, including food and drinks, accommodation, entertainment, and gaming in Australia. Its brands include Dan Murphy’s, BWS, Pinnacle drinks, ALH Hotels, Jimmy Brings, Langtons, Cellar Masters and Shorty’s Liquor. Dan Murphy’s operates approximately 251 liquor stores and has an integrated online offering. BWS offers a wide range of products across beer, cider, wine, premix and spirits. Pinnacle Drinks creates, builds and manages a portfolio of drinks brands. ALH operates and manages a portfolio of approximately 339 hotels in capital cities and urban and regional centers. Cellar Masters is offering a direct-to-consumer wine subscription service.
The $A has performed solidly through the uncertainties in Eastern Europe, it initially benefitted from appreciating commodity prices and now its enjoying the more traditional position of currency of choice for many traders playing the “long risk” stance – we can see a break to 3-months highs in the near future.
The war in Ukraine and especially the recent attacks near Poland / attacks on Europe’s largest nuclear power facility weighed on European stocks earlier in March but recently they’ve snapped back with a vengeance e.g. the UK FTSE has bounced over 9% in rapid fashion. Similar to our own market we are bullish into April with the prospect of fresh highs for some indices a strong possibility.
US stocks enjoyed their best week since 2020 as the Fed rate hike moved into the rear view mirror and tech stocks finally found some love. Unlike the ASX we feel fresh highs could be a step too far for the tech dominated US market but considering the strength of the bull market post COVID it shouldn’t be discounted, either way we are bullish over the coming weeks.
