Viewpoint: Bullish
As mentioned previously the combination of a weak bond auction and strong CPI (inflation) data reignited the fire beneath bond yields but the longer dated 10-years remain well below their March and October highs as bond traders are clearly positioning themselves for a global economic slowdown as stimulus is removed and interest rates normalised i.e. interest…
Overnight US stocks extended their recent pullback led by tech names following the strong rally by bond yields, at this stage we see a test down by the S&P500 towards the 4600 area before stocks recommence their advance with fresh highs yet again our preferred scenario – note last night’s late dip already has US stocks close to our target area.
CBA reached fresh highs this week taking its gain in 2021 to 34% plus $3.50 in fully franked dividends. We have no doubt around the quality of CBA as a company and bank but its now reached our upside target area making it hard to imagine another 10% upside before we enjoy our Christmas pudding hence posing the question would our money…
We discussed ALU in Wednesdays afternoon video update, the stocks rallied strongly over recent weeks putting our position up around 50% which makes it very easy psychologically to take profit. However when we consider the confident manner in which the board rejected Autodesk’s (ADSK US) takeover offer, even when it was rumoured to reach…
The ASX200 again succumbed to selling into early morning strength as we followed US S&P500 futures lower throughout the day, considering their 0.4% decline by 4pm AEST a small 0.1% dip by the local market was fairly encouraging, especially as iron ore plunged almost 8% at one stage weighing on both sentiment and related stocks. Fortunately…
This Trust based in Canada is an interesting story as the move towards a cleaner energy future gains momentum, and clearly Uranium will be an increasingly important part of the mix. This vehicle was originally listed in Canada, raised additional money and then dual listed in New York. Without going into too much detail, there is an exchange issue which…
MM has discussed this diversified resources company a number of times over recent weeks (here) as we’ve been waiting for an attractive entry opportunity. We believe this purchase will align this portfolio fully towards our reflation outlook towards stocks into 2022.
In our opinion gold looks fairly cheap both short and longer term which not surprisingly drops down to a sector which is screening very attractively on a valuation basis although its only just started listening to our view. NST have mapped out a 5-year strategic plan following its merger with Saracen (SAR) to produce 2Moz p.a. with declining costs…
US stocks failed to make it nine in a row but I don’t think we can knock a 10% rally in just a few weeks. Our best guess is we now see the S&P500 pullback a few percent in a healthy correction of recent gains before enjoying another rally to new highs. MM is still bullish but we caution that the risk / reward for new buyers is diminishing slowly but surely.
It was a disappointing performance from NCM yesterday which cost me a steak with one of my colleagues who commented early on the day “NCM always finds a way to go down” to which I replied “steak says it finishes up on the day”, fortunately he doesn’t drink so it will be a cheap and quick lunch! However on a more serious note, following on from…
