The Good Morning Report – 1st November

The latest market news, commentary and strategy by Adrian Rowney 

5 Things that Grabbed my Attention

1.  Personal TAX revenue sent to the government increased by a whopping 17% over the past year....YEP, the criminal organization occupying Canberra is bleeding us common folk dry. Even Fat Tony Salerno would've been impressed with their $300bn plus haul!

2. Gina Rinehart is certainly not worried about the outlook for LITHIUM - she has recently ploughed a couple of billion into the sector.

3. Treasury Wine (TWE) is forking out $1.6bn for a luxury wine company in California....I'm not sure about the timing and also buying it on a hefty valuation of 12.8 times EBITDA. I doubt the market will be impressed when the stock opens back up.

4. Inghams (ING) surged 7.8% after saying demand for chicken continues to strengthen with supermarkets allocating more space for them....I was banging on about this stock sub - $3 so it was nice to see it continue it's run higher despite this market correction. Maintain BUY

5. US Treasury says it needs to borrow another $1.5 Trillion over the next six can only laugh....and....BUY PRECIOUS METALS at the same time!!! (they say paper beats rock but I'm telling you right now - that's all a lie)

ASX Market Update

ASX 200 up 7 points to 6780

Aussies investors didn't give a stuff about the strong lead out of Wall Street....Lithium miners were hit the hardest as margins get squeezed due to lower pricing. PLS fell 3.93%, MIN off 4% and SYA lost 7.5%

Random Observation

Got SILVER?....pound for pound I think it is the best risk/reward investment going.

The Day Ahead

  • Our SPI is up 35 points
  • Bitcoin up 0.8% to $34,648

Movements affecting our resource stocks today (USD)

  • BHP in the US down 0.85%
  • Newmont down 3.18%
  • Gold down 0.65% to $1992
  • Paper Silver down 1.8% to $22.94
  • Platinum up 0.39% to $943
  • Copper down 0.15% to $3.65
  • Brent Crude FLAT @ $87.42
  • Iron ore FLAT @ $119.45

Asian Market Update

Japan up 0.53%, China FLAT, Hong Kong down 1.69%

Japanese government bonds (JGB) continue to sell off. As the bond price falls the yield goes up (indicated by the chart below), so for investors that is bad....It's really hard to imagine a worse investment proposition right now: lending the Japanese government money for 10 years and getting a paltry 0.94%pa return plus potential for massive capital losses - no thanks!

If we get an OIL price shock, the Japanese financial system will come under intense strain as runaway inflation will crush its bond market.

Global Market Update

US Market

DOW up 123 points to 33,052

US stocks backed up for another solid session....Tomorrow will see Jerome Powell hand down the FED decision on interest rates - the market is pricing in a 99% probability that rates will be kept on HOLD.

European Markets

Brits FLAT, Germans up 0.64% and Frenchies added 0.89%

BP shares fell 4% after posting a quarterly profit that MISSED expectations. Earnings from the trading division was the culprit...But don't worry - with a US$3.29bn profit for the past three months, BP will live to fight another day.

Key Market Summary

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Stephen Hall
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