The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. RBA is likely to keep interest rates on HOLD today......Dr Phil and the government are pursuing inflationary policies.
2. Property prices around Australia are going back up with CoreLogic reporting a stack of properties recently selling well above asking prices....Once again, Stockland (SGP) shares were an accurate leading indicator.
3. JP Morgan (JPM) has swallowed up First Republic Bank...JPM CEO, Jamie Diamond negotiated the sweetheart of all sweetheart deals that leaves the US taxpayer holding the bag.
4. Brett Blundy has made a takeover offer for Best and Less (BST) @ $1.89.....that's lower than the current market price of $1.95!
5. The Uranium mining sector has been starved of capital since Fukushima - this will lead to shortages and price spikes of yellow cake.....It's a massive opportunity; DON'T SLEEP ON IT!!
ASX Market Update
ASX 200 up 25 points to 7334
A bit of money rolled into banks after the government flagged another scheme to help Aussies buy their first property. We also saw a strong weekend of property auctions as investors front run the stack of migrants about to hit our shores....Yes, the powers to be are pumping things up again - but that will mean more inflation and higher interest rates in the not too distant future....So careful out there - you don't want to get stuck with an overpriced, leveraged asset in the coming global financial crisis. Now is not the time to be a HERO. Play it cool - keep chipping away on exposure to essential commodities that are in very short supply such as SILVER, PLATINUM, COPPER & URANIUM.
FREE computer generated quant models that you get with online trading platforms are useless....As of 26th of April this model still had BWX as one of its top undervalued stocks but the company went bust on the 4th of April.
The Day Ahead
- Our SPI is down 7 points
- Bitcoin down 4.78% to $27,970
Movements affecting our resource stocks today (USD)
- BHP in the US down 0.86%
- Gold down 0.46% to $1989
- Paper Silver FLAT @ $25.25
- Platinum down 2.6% to $1063
- Copper up 1.14% to $3.93
- Brent Crude down 1% to to $79.42
Asian Market Update
Japan up 0.92%, Hong Kong put on 0.27% and China up 1.14%
Looks like the Xi Man has been doing a pretty good job of cleaning up parts of China....and that's despite burning more COAL than ever....Would Chris Bowen and his climate cultists care to explain how this is possible???
The standard photos of #Beijing used by Western media still show a polluted city.
However, Beijing’s air quality has improved vastly over the last decade. In terms of pollution, Beijing doesn’t even show up in the top 300 anymore.
Blue sky and beautiful days are not rare… pic.twitter.com/wNwhU9Lnic
— S.L. Kanthan (@Kanthan2030) April 30, 2023
Global Market Update
DOW down 52 points to 34,039 (half hour to go)
First Republic Bank shareholders and debt holders get wiped out, US tax payers take yet another big loss and JP Morgan comes out smelling like roses!
You can’t make this up:
JP Morgan just said it’s acquisition of First Republic will generate a one-time gain of $2.6 billion.
They also expect over $500 million in profit per year from the acquisition.
On top of this, the FDIC is covering $13 billion in losses and providing…
— The Kobeissi Letter (@KobeissiLetter) May 1, 2023
I love this quote from the JP Morgan CEO....he makes himself out to be the saviour after bagging an immediate $2.6bn profit!! HAHAHA - CLOWN WORLD!!
Germans up 0.77%, Brits added 0.5% and Frenchies up 0.1%
Eurozone economy grew by 0.1% over the past quarter but with inflation running around 8%, the average bloke on the street is getting smoked.
Key Market Summary