The Good Morning Report – 29th May

The latest market news, commentary and strategy by Adrian Rowney 

5 Things that Grabbed my Attention

#BREAKING: A Debt Ceiling agreement has been reached.

1. Capital is feverishly pouring into AI, which means there is even less investment dollars available for new mining projects....This is actually a superb situation for incumbent producers because prices of metals will eventually soar.

2. JP Morgan is building an AI investment advice platform.....In the future, AI platforms will manage trillions - my job will be to work out how they behave.

3. UAE bought 75 tons of Russian GOLD last year.....Smart....I would expect Arab nations to continue funneling surplus OIL profits into GOLD.

4. Latitude Financial Services (LFS) has increased the amount it is provisioning for bad debts as more of its leveraged up customers hit the skids.....AVOID all FINANCIALS.

5. Gina Rinehart just bought two cattle stations for $80 mil.....I doubt she paid 60c in the dollar like you can with Australian Agriculture (AAC) at the moment. The NTA of AAC is 2.59 Vs last sale $1.57. BUY

ASX Market Update

ASX 200 up 15 points to 7155

It was good to see fruit and veg grower/wholesaler Costa Group (CGC) put on another 3.94%. This stock has got plenty of upside from here; management are happy that backpackers have returned to pick the fruit in what is going to be a bumper season due to dry weather. BUY last sale $2.64.

"Hey  Con, what's  the  stock  code  of  that  BEWDIFUL  fruit  company  again? Dipper  ain't  wanna  miss  out!"

Random Observation

The Day Ahead

  • Our SPI is up 70 points
  • Bitcoin up 0.93% to $33,093

Movements affecting our resource stocks today (USD)

  • BHP in the US up 3%
  • Newmont up 0.1%
  • Gold up 0.12% to $1946
  • Paper Silver up 2.34% to $23.44
  • Platinum up 0.29% to $1029
  • Copper up 2.33% to $3.67
  • Brent Crude up 1.45% to $76.95

Asian Market Update

Japan up 0.37%, China added 0.35% and Hong Kong was SHUT

The great drain continues....At some stage the metals are going to shoot through the firmament - you won't have time to get on board, so it is best to accumulate exposures now and sit!

Global Market Update

US Market

DOW up 328 points to 33,093

Stocks rallied on the continued hype around AI and also optimism over the debt ceiling negotiations....The market is betting big that AI is going to translate into some easy, profit margin expansion for a stack of corporates, but I am not sure if I share the same sentiment this soon. From what I know - AI is far from perfect and is prone to making mistakes.

European Markets

Germans up 1.2%, Brits added 0.74% and Frenchies put on 1.24%

It's like shelling peas for Xi Man these days....the wokes running the show across the WESTERN WORLD are just making it too easy for him to win!

Key Market Summary

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