The latest market news, commentary and strategy by Adrian Rowney
Remember kids – always trust the science!
5 Things that Grabbed my Attention
1. Chinese inflation rate came in at 0.4% Vs expectations of 0.7%….With low inflation I’d expect the PBOC to announce further economic stimulus measures (money printing) over the coming months. Remember: central banks are mandated to create inflation of generally between 2% to 3%.
2. Bit of talk that the Kiwi’s may cuts rates by 0.75% when they meet next month in order to combat their very weak economy.
3. Chalice (CHN) just got awarded ‘Major Project Status’ from the federal government as well…..The establishment is rolling out the red carpet for CHN’s mega PLATINUM/PALLADIUM/NICKEL/COPPER project, the mine helping their low carbon future – which is all total BS of course! BUY last sale $1.62
4. WEB Travel (WEB) tanked 35% after announcing margins continue to get squeezed. If the stock gets cheap enough, I’d say the giants such as Expedia and Booking Holdings Inc would run the ruler over them….Flight Centre (FLT) and even QANTAS (QAN) should take a look as well.
5. If SILVER has a quick run up to $US50/oz , Boab (BML) should surge many multiples from it’s very beaten up position – SPEC BUY last sale $0.105
ASX Market Update
ASX 200 up 38 points to 8252
A few weeks ago WebJet (WEB) demerged to become Web Travel (WEB) and Webjet Group (WJL).….Basically WJL is the DIY online travel business and WEB is business to business division. It was WEB that reported the margin squeeze and suffered the big share price fall.
With the absolute nightmare Aussie miners are facing to get approvals, it was great to see Chalice get awarded a Major Project Status….I’m sure that Mitsubishi would also be frothing over the news. BUY last sale $1.62
Random Observation
I’m very certain that investing in Private Credit Funds is going to end in tears just like it did in the GFC when these type of funds were called Mortgage Funds…..AVOID this crap and don’t get jealous when you hear your fellow boomer mate bragging to you about the 9% low risk income they are making – just smile and say how happy you are for them (warning an existing investor at this stage will be futile as they will be completely brainwashed by the spruiker that sold them the too good to be true investment.)
The private credit industry is a house of cards. When liquidity dries up, a wave of underperforming assets will hit a market with few buyers, sending valuations plunging which will then force the funds to halt redemptions and cease paying income to investors….Then, when your boomer mate comes crying to you about being screwed over, just be sympathetic and say bad luck mate, bad luck.
The Day Ahead
- ASX 200 futures up 35 points
- Bitcoin up 5.27% to $65,930
- BHP in US up 0.9%
- Newmont in US up 1%
- URNM in US up 0.15%
Movements affecting our resource stocks today (USD)
- Gold down 0.29% to $2668
- Paper Silver down 1% to $31.44
- Platinum up 1.1% to $1005
- Palladium down 3.25% to $1035
- Copper down 2% to $4.40
- Brent Crude down 1.92% to $77.52
- Iron ore up 1.2% to $107.30
Asian Market Update
China up 2%, Hong Kong dipped 0.75% and Japan added 0.57%
Iron Ore prices have rallied over the past month as demand increased…
Global Market Update
US Market
DOW up 201 points to 43,065
US stocks hit record highs again as traders bet that quarterly profit reporting season is going to be a strong one.
European Markets
Germans up 0.69%, Brits added 0.47% and Frenchies put on 0.32%
Swelling bureaucracies have got to eat….
Key Market Summary
