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The Good Morning Report – 31st October

Posted on October 31, 2023

The latest market news, commentary and strategy by Adrian Rowney 

5 Things that Grabbed my Attention

1. DOW up strongly overnight as OIL prices fell around 3%. 

2. Newcrest (NCM) shareholders will be getting 0.4 Newmont (NEM) shares for every NCM share held - it will show up in your account around the 8th of November.....Newmont is now trading on the ASX.

3. Ford & GM have both warned about soft demand for their EVs....I think people are working out that EVs are not only horrible for the environment but are inferior to Internal Combustible Engine (ICE) cars as well.

4. If there is a big pivot against EVs one day (incumbent governments in the WEST would have to topple) then PLATINUM will be a major beneficiary......Why??...because PLATINUM is needed to make catalytic converters. BUY ETPMPT

5. JP Morgan CEO is selling $141 mil worth of shares. Follow the money - AVOID FINANCIALS

ASX Market Update

ASX 200 down 54 points to 6772

Newmont (NEM) shares had a decent session and rallied 3.09% to $61.34. This would be the equivalent of NCM trading @ $24.53 - I worked out this value by getting the last sale price of NEM and multiply by 0.4% which is the percentage of NEM that NCM shareholders now own.

The combined NEM/NCM is an absolute BEAST. Check it out:

If someone put a gun to my head and said choose one stock, NEM might be the one that comes out of my mouth. BUY 

Random Observation

Without cooking the books on their unlisted investments, I can't see how Industry Super is going to outperform as they aren't loaded up on GOLD.

To me - this is yet another red flag for Industry Super as outperformance is certainly not going to come from toll road stocks; Transurban (TCL) is down 20% since April and Atlas Arteria (ALX) is off 25% since January.

The Day Ahead

  • Our SPI is up 25 points
  • Bitcoin down 1% to $34,329

Movements affecting our resource stocks today (USD)

  • BHP in the US up 0.7%
  • Newmont down 0.8%
  • Gold up 0.45% to $2007
  • Paper Silver up 2.5% to $23.46
  • Platinum up 4% to $941
  • Copper up 0.25% to $3.66
  • Brent Crude down 2.8% to $87.87
  • Iron ore up 1.8% to $121.20

Asian Market Update

Japan down 0.95%, China up 0.2% and Hong Kong FLAT

Apparently the Xi Man and Biden are going to meet up in San Francisco next month. When I heard he could be headed to San Fran I immediately remembered Joe Rogan's Podcast....So I wonder...is the Xi Man agreeing to this meeting so the whole world gets to see that this former great city has turned into the third world?

Watch this:

 

Global Market Update

US Market

DOW up 511 points to 32928

US stocks bounced as traders jumped over each other on hopes that the correction is over. A falling OIL price sort of acts like a tax cut - company margins improve and consumers have extra cash in their pockets to play with.

European Markets

Germans up 0.2%, Brits added 0.5% and Frenchies put on 0.44%

The GERMAN economy fell 0.1% over the quarter which was better than the 0.3% decline that was forecasted....Germany is suffering from the STAGFLATION (falling economy, rising prices).

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