Viewpoint: Bullish
HVN has more than tripled from its COVID low gaining over 100% in just 12-months but as always what comes next is what matters. We like this retailer which is forecast to yield over 6.5% fully franked over the next 12-months but our optimum entry is around the $5.25 area.
Investment giant Oaktree has now entered the Crown Resorts (CWN) affray after offering to buy out James Packers 37% holding in the casino operator.
Gold stocks have led a small recovery in precious metals which we feel will follow through over the coming weeks. However what we like the most with todays chart is the risk /reward, we are bullish with technical stops only 3% below Fridays close.
Conversely copper has bounced recently but it remains ~5% below its 2021 high however the leading stocks in the space are making fresh highs for the year illustrating a very different belief to that with iron ore.
The $A remains in sync with bond yields and the $US targeting another break above 80c before MM would adopt a more neutral to slightly bearish stance – a great example of how financial markets act like an interlocking mosaic with a few major pieces dictating where the others fit into the puzzle, the dominant force tends to vary with market mood & sentiment.
The MSCI World Index has punched higher since the pandemic revelling in the lower interest rate & high stimulus environment, governments / central banks are in a hurry to reduce unemployment and lift inflation creating the perfect nirvana for equities.
The weather has been unusually kind to ELD in 2021 with plenty of rain around, this combined with surging cattle prices and record crop yields has been good news for the agricultural sector.
Global plumbing business RWC has recovered solidly from its COVID low although the $5 area has remained a brick wall since late 2018.
Overnight we saw some significant moves across financial markets from bond yields dipping sharply to copper, gold and silver rallying strongly.
Yesterdays “top performer” was Ampol (ALD) which embraced its solid earnings report – considering we believe this is a year to buy weakness and sell strength our interest was pricked by this fuel operator which is trading almost 30% below its 2020 high.
