Viewpoint: Bullish
US stocks enjoyed a strong rally overnight as the trend remained your friend and risk came back into vogue after a few uncertain sessions, the broad US market is now only 2% below its all-time high. The tech stocks look great technically and new highs feel back on the agenda into next year.
This time last week we wrote:
“CSL is currently in a trading halt after buying Swiss Vifor Pharma Group for $16.4bn as it backs ageing and obesity to remain integral problems for society moving into the next decade. The acquisition is being funded by a $6.3bn share placement, a $750m SPP and cash, debt facility etc. While we don’t like the direction the world is moving…
WHC endured a savage 36.8% correction following Chinas intervention in the coal market as they tried to soothe domestic tensions as an energy style crisis unfolded across the world’s 2nd largest economy. Prices were sent down around 50% in just a few weeks in a move not unlike that experienced by iron ore. The coal price remains supressed but…
Amazon is the undoubted underperformer of the 3 having struggled to make significant gains over the last year. Amazon had a relatively tough last quarter due to supply chain issues, rising wage costs / labour shortages and the elevated costs of goods the e-retailer sells but via its Amazon Web Services (AWS) and Amazon Marketplace it should…
Microsoft has been jostling with Apple to be the world’s largest listed company but at $US2.4trillion its slipped behind of late. MSFT is an impressive growth stock with the expansion of its cloud ecosystem delivering excellent revenue growth with improving long term margins i.e. a rare and delightful combination. The company’s stable earnings…
Apple is probably on many a child’s wish list for Christmas and this $US2.8trillion behemoth continues to move from strength to strength even as the business experiences supply chain issues. The company delivered a slight miss on revenue when it reported in November but the markets shrugged this off as a short-term anomaly which will be rectified…
When we consider the ructions in bond markets over recent months the performance by US growth stocks i.e. Tech & Healthcare has been relatively impressive even if they have felt “wobbly” at times. The most recent 2 “Bond Tantrums” saw far more aggressive moves by both sectors yet this year when yields have remained high and global central banks…
As we’ve mentioned over recent reports we continue to like the EUROSTOXX 50 around the 3900 area while we would be looking to reduce exposure above 4500 – basically nothings changed for 6-months as the regions stocks have continued to trade in a tight range, just like our own.
Overnight we saw US stocks open weaker following the drop by S&P futures in our time zone and then basically tread water for most of the day, the losses were fairly evenly spread and our ideal retracement target for the NASDAQ is now only 2% away hence at current levels we are definitely leaning to buying dips.
The ASX200 fought valiantly on Monday to only slip 11-points considering Magellan (MFG) tumbled over 30% and US futures literally melted before our eyes on the combination of intensifying Omicron fears and diminishing confidence in Joe Bidens ability to drive US economic expansion. Interestingly while falls reverberated across major global…
