Viewpoint: Bullish
Local bond yields have continued to rise from their late August low, the RBA may be sticking to its guns to hold the cash rate at 0.1% through until 2024 but markets are voting on rate hikes moving forward with the only point of debate being when, not if. Across the Tasman the RBNZ is expected to start tightening (raising) interest rates this week as it looks poised to lead…
US stocks struggled overnight as the market embraced MM’s theme for the coming year i.e. the banks & resources are poised to outperform growth names. In last night’s case it was all about selling the Tech stocks as concerns around rising bond yields gathers momentum e.g. Apple Inc (AAPL US) and Amazon.com (AMZN US) both fell well over 2%. These cracks…
The ASX200 is showing some signs of a recovery following its September retracement, the combination of the “reopening trade”, banks and energy names continue to do the heavy lifting and assuming we can see the remainder of the market hold its ground our bullish view feels on point but its wasn’t ideal to see more than 20% of the market slip lower yesterday…
The ASX200 kicked off the week with a bang even though many of us enjoyed a long weekend – a sunny one in Sydney. It’s not often you see CBA rally over 5% in one day but a heavily oversubscribed $6bn buyback, which represents 3.8% of the banks issued capital, was enough to the send the stock within a few percent of its all time high, there were a couple…
Lastly NAB which we hold in both of our Flagship Growth & Active Income Portfolios, it’s been the stronger of its peers grinding out new highs through September. We wouldn’t be surprised to see a test of $30 into Christmas although again we wouldn’t be chasing fresh highs.
WBC has now been trading sideways for over 6-months in our opinion creating a very similar picture to CBA. At this stage we would be reducing exposure around $28, or 8% higher, while we feel value is restored in the $23 area.
Australia’s largest bank CBA doesn’t report or trade ex-dividend until next year which may reduce the markets appetite for the stock this month, our view of the company hasn’t changed over the last few months i.e. we are keen buyers around the $95 area while believing the stock is fully priced around $110. In other words MM expects CBA to continue trading in a similar range as it has since May.
Yesterday saw the local banks enjoy a stellar session with Westpac (WBC) the standout surging 3.3% as it even managed to post small gains for September. November is approaching fast and that’s when 3 of the major 4 Australian banks both report and pay healthy dividends e.g. WBC is forecast to yield around 4.65% fully franked over the next 12-months. Hence it’s not…
US stocks were smacked overnight taking their current pullback to 5.3%, suddenly our ideal retracement target is only around 3% away, in todays unsettled market that could be only one poor piece of news away. We already have concerns around the Fed tightening (hiking interest rates), China Evergrande and associated risks and now Joe Bidens administration…
The ASX200 finally found its mojo on the last day of September rallying 1.88% on broad based buying which ultimately saw 86% of stocks close in positive territory, the “Big 4” banks caught my attention gaining an average of 2.4% – perhaps we have a clue as to what sector could drag the index to fresh highs, as we said yesterday moving forward the heavy liftings…
