Viewpoint: Bullish
No change, if we were trading the crypto we would have bought under 30,000 looking to sell around 40,000 we’ve been on point over recent months but as in all casinos our luck will eventually run out!
Last week we looked at the major outperformance the IT stocks have enjoyed over the Resources since mid-May, its been good to us as we’ve migrated our Growth Portfolio to a significant overweight stance towards the tech sector.
The US S&P500 had basically gone nowhere since April before last week when it again broke out to fresh all-time highs, conversely the ASX drifted last week and is set to test many investors nerves both this morning and through the week.
Today’s report as its name suggests usually focuses on the macro-economic factors driving financial markets both today and into the future, however as Sydney goes into a 2-week full lockdown and the rest of Australia feels in danger of following suit the deteriorating local virus picture looks highly likely to dominate both the end of the this financial year, & the start of FY22 – NSW represents ~30% of Australia’s GDP.
Washington H. Soul Pattinson and Company Ltd (WHSP) is an Australia-based investment company. WHSP’s segments include Strategic portfolio, Large caps portfolio, Emerging companies portfolio, Private equity portfolio, Structured yield portfolio and Property portfolio. Strategic portfolio comprises investments in uncorrelated listed companies where WHSP has board representation. Large caps portfolio managed, Australian listed equities portfolio. The portfolio seeks to generate consistent income and capital growth over the long term. Emerging companies portfolio invests in attractive, early-stage and high growth companies that are listed, about to undertake an Initial Public Offering (IPO) or at a pre-IPO stage. Private equity portfolio Includes long term investments in unlisted companies to support their future growth. Structured yield portfolio contains investments in corporate loans and hybrid instruments. Property portfolio includes investments in property development joint ventures.
GXY is a $1.8bn mining business which operates in Australia as well as Canada and Argentina with assets including hard rock mines and brine deposits.
MIN is an iron ore and lithium mining giant with a current market cap of $9.5bn.
ORE is a $9.5bn goliath whose assets are primarily in northern Argentina and who has Toyota as its largest shareholder with a 10.5% stake, a takeover in the future remains an option.
Investing in lithium over recent years has been an extremely volatile ride which has seen heavyweights like Orocobre (ORE) more than double and then half over just a few years, we’ve witnessed both crowded positioning and panic selling as the growth around EV’s masked the impact on the underlying lithium prices which has a supply coefficient, as well as demand.
The $US has been drifting since its strong bounce last week, price action which has led to some ongoing rotation between the likes of tech, resources and banks.
