Viewpoint: Bullish
As we touched on earlier and Rocky/James covered at length in yesterday’s Resources Webinar, MM likes the Gold Sector into 2023 especially when we combine the softening rhetoric from the Fed and their significant valuation appeal i.e. they are cheap!
US stocks surged higher overnight following the relatively dovish comments by Jerome Powell, tech names led the charge as bond yields fell away with the NASDAQ popping +4.6% higher – MM can easily see another 10% upside for these growth names.
The discount to the fair value of gold names since the precious metals high, in $US terms, back in mid-2020 is huge, it’s as much as 50% for a number of stocks.
WHC ended November on the front foot rallying over +8% following a 30% pullback from its early October high above $11, we believe this coal producer can remain strong over the coming months as the supply side clouds for the sector while demand looks set to remain high for years to come.
Sandfire (SFR) is now the Australian market’s long-life major international copper play and last month’s +40% rally appeared to see money flood from BHP target OZ Minerals (OZL) to SFR, we like the stock but may trim into further strength.
The ASX200 rallied another +0.4% yesterday taking it within striking distance of the psychological 7300 level, amazingly only 4.5% below its all-time and that’s before we take into account dividends, in just one month November has delivered gains of +6.75% (including dividends) defying numerous bears in a relentless march higher.
TPW +14.07%: the furniture ecommerce business hosted its AGM today with the company saying there are signs cost pressure are starting to ease.
Crude oil has bounced nicely from its test of $US75 and in line with current market optimism towards China, we can see a rally over the coming weeks to test the low 90s, which should help support stocks into Christmas.
US indices hardly moved overnight as they await a speech from Fed Chair Jerome Powell, energy stocks rallied in line with the crude oil price while Apple Inc (AAPL US) helped drag the tech stocks lower.
The ASX200 rallied another +0.3% yesterday as it embraced advances across Asian indices as opposed to falls in the US on the previous night.
