The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Indian SILVER imports are on track to more than double in 2024 from last year….Cheap SILVER is not going to last.
2. Gas pipeline owner APA is warning of shortages and price spikes on the east coast of Australia next year…..Man oh man are we just the laughing stock of the world? Australia is swimming in energy, yet these bastard politicians have created a completely unnecessary crisis.
3. I’m putting an AVOID rating on Mineral Resources (MIN)….Net debt has doubled, at a time their LITHIUM mines are making no money and their higher cost IRON ORE mines puts them in a real pickle if prices fall 20% to 30%. MIN seriously needs to fix it’s balance sheet so will either have to do a heavily dilutive capital raising or sell equity stakes in some of their mines – pick your poison.
4. Don’t go anywhere near the Mark McGowan chaired Frontier Energy (FHE)….Solar farms are absolute crap investments. FHE is also loading up with $215 mil to build one.
5. Kamala Harris is proposing a 25% unrealized gains tax on the wealthy…..Imagine the exodus of money out of the USA if implemented.
ASX Market Update
ASX 200 down 26 points to 8045
The miners were sold off as UBS downgraded it’s economic forecast for China and now believes it’s 5% growth target is doubtful….Uranium miners copped a little extra selling pressure – for what reason I don’t know, but those exiting the sector may look back at the end of the year and wonder what they were thinking! PDN fell 3.75%, BOE tumbled 8.25% and URNM was off 2.73%. I have a BUY on all three.
This tweet is perfect….Hahahaha
Random Observation
If you want to see just how corrupt America is then click on this clip……The insider trading must be just off the charts and without an inquisitive media, plus a crooked SEC, their crimes will continue to go unpunished.
The Day Ahead
- ASX futures up 47 points
- Bitcoin up 0.1% to $59,256
- BHP in US up 1.3%
- Newmont in US up 2.6%
- URNM in US down 1.1%
Movements affecting our resource stocks today (USD)
- Gold up 0.67% to $2554
- Paper Silver up 0.61% to $29.81
- Platinum up 0.7% to $943
- Palladium up 3.78% to $974
- Copper down 0.19% to $4.21
- Brent Crude up 1.7% to $79.99
- Iron ore up 1.3% to $101.90
Asian Market Update
Japan FLAT, China off 0.5% and Hong Kong added 0.53%
Wait….the experts are telling us that inflation has been defeated, so this must be fake news!
Global Market Update
US Market
DOW up 243 points to 41,335
Discount retailer Dollar General crashed 32% as the company warned that it’s customer base is feeling financially pressured…..There is a two speed economy running in the WEST – it’s the haves (own assets) who are cleaning up and the have nots (renting/credit card debt/BNPL) who are screwed.
European Markets
Germans up 0.69%, Brits added 0.43% and Frenchies put on 0.84%
The DAX (Germany) closed at a record high as traders bought up stocks on news inflation eased to 2%.
Key Market Summary
