Viewpoint: Bullish
A confluence of factors sent Asia’s largest technology company down nearly 30% in 2021 making it one of the poorest performers on a global scale.
Copper has experienced a 6 week correction of its bullish trend which now looks complete.
Gold equities often lead the underlying gold price as traders get positioned ahead of a likely move in the underlying commodity – MM has taken this view by increasing our Newcrest (NCM) position to a fairly aggressive 7% weighting in the Flagship Growth Portfolio and adding Gold positions across portfolios more broadly.
While oil looks to be putting in a major top, there are growing signs that gold is putting in a bottom and is setting up for a rally into financial year end.
In MM’s view, one of the best ways to play this is via the downtrodden UK based Virgin Money (VUK) which is listed on the ASX.
The UK has been through more dark days than many others over the past year as they grappled with a suitable COVID response, however three national lockdowns and a crippled economy are now giving way to signs of hope and a return to normality as nearly 37m vaccine doses have been administered and over 50% of the population have now had the jab.
Last week we suggested that global equities remained in a clear bullish uptrend and a break to fresh all-time highs felt almost inevitable, within a week we’re there!
Betashares FTSE 100 ETF (F100) is a exchange traded fund incorporated in Australia. The Fund aims to track the performance of the FTSE 100 Index, before taking into account fees and expenses.
Yesterday we saw China’s Manufacturing PMI improve to its highest level this year on increasing demand even while COVID lingers around.
US stocks punched to fresh all-time highs overnight as tech stocks found their lost mojo, the broad based S&P500 is now up well over 80% from its COVID low.
