Viewpoint: Bullish
Investors have moved to a pretty bearish stance towards equities as inflation and Omicron unsettles peoples nerves and while this can easily go a touch further the last few years has shown us that when sentiment indicators become so pessimistic surprise surges, or relief rallies, on the upside are commonplace.
The British Pound drifted lower last week even after the BOE surprise rate hike, in similar fashion to the yield on Gilts the timing of the move may have surprised most pundits but it was clearly built into the price of both the FX and credit markets. We still believe the Pound (referred to as Cable in FX circles) can take another leg higher towards…
The ASX200 was actually very quiet last week, it didn’t feel like it due to some of the major sector rotation we witnessed e.g. from discretionary spending and media into the resources but the index itself slipped less 1%. MM remains still mildly bullish into 2022 but there are some macro concerns lurking in the shadows hence we believe this remains…
Interestingly local $9.1bn heavyweight copper player OZ Minerals (OZL) has made fresh all-time highs this week even while the base metal languishes over 10% below this year’s peak implying a steady rerating of the stock i.e. investors are happy to buy OZL on a higher valuation. MM remains bullish and long OZL and while its not cheap at current…
Copper is a metal where demand is set to soar as EV’s become the vehicle of choice which made us ponder if some M&A activity might flow into this area when the dust settles in the nickel space. We remain bullish copper targeting a test of the psychological $US500/lb area as demand should grow as the post COVID economic recovery splutters…
As we mentioned earlier crude oil along with most commodities rallied strongly overnight and although prices are still over 15% below their 2021 high we feel this level will be breached in the coming months i.e. MM sees 15-20% upside moving into next year which should help the maligned Energy Sector.
Overnight we saw US stocks reverse from solid early gains as the tech sector was hammered 2.6% with Apple (AAPL US) one of the standout losers. At this stage another leg down by the NASDAQ feels a strong possibility and it feels premature to buy weakness even if it is mid-December and seasonal factors suggest buying all dips.
NWL has been an excellent performing fintech since COVID although its traded largely sideways for the last 12-months. The platform provider launched a takeover for Praemium Ltd (PPS) last month which we believe will offer solid synergy for NWL but there’s more water to go under the bridge here with the PPS board believing the bid undervalues…
Thursday saw much of the ASX200 embrace the overnight statement from the Fed but when CSL Ltd (CSL), the markets 3rd largest stock, plunges over 8% its always going to be a tough day at the office for the Australian market. However we still expected a little more from the local bourse but as MM touched on yesterday when investors are…
HLS has been a great performer over the last few years and we believe the trends your friend here with a test of $5.50 looking likely into 2022 – a good read through for both the market and sector.
