Viewpoint: Bullish
The ASX200 keeps posting fresh all-time highs almost as often a day ends with a “y”, earlier this quarter MM was optimistically discussing the major Australian benchmark breaching 7000 but around midday on Thursday 7300 was feeling more likely.
DUB +5.58%: launched its partnership with global cloud communications business Cisco today.
I had lunch with a good client / family friend today and the topic got onto inflation as the potential for derailing this current market rally, the second investor I’ve spoken to today to bring up that very topic.
STO was our preferred buy in April and it still is but the risk / reward is not too exciting after recent strength hence were reticent to chase but any dips will be interesting.
WPL has really struggled post COVID only managing to regain ~50% of its losses. We feel WPL is now in an accumulation area following its 22% correction in 2021 but we wouldn’t throw the kitchen sink at it, ultimately we prefer the production profile of Santos.
MM holds BHP in 3 of our portfolios, the resources giant has really helped our performance since the peak of the COVID panic.
We have discussed the coal price of late alongside Whitehaven Coal (WHC) which has rallied +30% over the last month as it finally embraces the exploding coal price, we are feeling that the oil stocks might follow suit although probably not with the same gusto as WHC which has more than doubled over the last 9-months.
The Energy Sector has started to come alive over the recent week as it becomes another pocket of the index which feels like its attempting to address the last 6-months underperformance.
US and European stocks edged higher overnight, the World Index which is basically global stocks minus emerging markets continues to tread water around its all-time high.
MP1 fell almost 5% yesterday making it the markets worst performer however following its strong 46% recovery over the last couple of months a pullback isn’t surprising, MM will consider increasing our position into any weakness under $14.
