The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Fed Chair told Congress that interest rates are headed higher than previously expected...Stocks, bonds, metals all puked as money poured into US dollars.
2. RBA increased rates by 0.25%....Dr Phil in his statement said : 'High inflation makes life difficult for people'....Oh you don't say.
3. Financial Tech company Bravura Solutions (BVS) collapsed 53% after announcing a heavily dilutive capital raising to fix its balance sheet....Fortunately, I had an AVOID rating on the stock.
4. Singapore's central bank which is called the Monetary Authority of Singapore (MAS) bought a whopping 44 tons of GOLD in January; that's an almost 30% increase on its existing holding!....May not be obvious right now, but GOLD is going much, much higher in the future.
5. Consumer confidence continues to sag in Australia....No need to be buying into consumer discretionary stocks right now.
ASX Market Update
ASX 200 up 36 points to 7364
The big news was TPG making a takeover bid for Invocare (IVC) sending its shares soaring 34% higher.....With IVC management completely stuffing up last year, it is little wonder the very shrewd TPG decided to pounce...While it's great that some of you got a short term winner, it will be a shame to see a very unique company like this vanish from the ASX if the bid is successful.
After the selloff last week, I picked IVC as a takeover target in Monday's Good Morning Report.
I also promise you that TPG understand the strong fundamentals of the sector - here is an insurance analyst explaining what is going on (he appears to be a bit uneasy with his findings and fair enough - what a crap situation we are in)...
Top insurance analyst Josh Stirling discusses Aggregate mortality with Covid Vaccine pic.twitter.com/qqp0l7pno8
— 🇨🇦TraumaNurse (@TraumaaaNurse) February 21, 2023
Scandal of the highest level??????
This is what the scandal of the highest level was about:
"While the gold remained above broader industry standards, the report estimated up to 100 tonnes of gold sent to Shanghai Gold Exchange (SGE) potentially did not comply with Shanghai's strict purity standards for silver content"
Are you kidding me - what a joke of a story..."POTENTIALLY".... I guarantee you that NONE of this GOLD will ever get sent back to Australia. The Xi Man bans exporting the stuff! The Perth Mint GOLD bars are accepted by every central bank on earth....I know I would love to own a big pile of those 99.99% pure GOLD SCANDAL PERTH MINT bars!!!
It seems to me the hit piece is designed for you to lose trust with GOLD from the Perth Mint; remember the ESTABLISHMENT wants you invested in BONDS and their FINANCIAL SYSTEM - definitely NOT GOLD.
And then the ABC uncovers another scandal...
This former Hells Angels bikie was 'absolutely a red flag', but Perth Mint sold him $27,000 in gold — no questions asked.https://t.co/1YiXm4a4Qi— Four Corners (@4corners) March 5, 2023
But want to know what the real scandals are?... Well its how Australia is selling BILLIONS worth of GOLD to CHINA every year, how the RBA owns bugger all GOLD and how EVERY SUPER FUND (3 $Trillion pot) doesn't have a box to tick allowing normal Aussies to easily invest in GOLD....The Chinese are basically stealing our STORE OF WEALTH out from under our noses. That's the REAL STORY.
The Chinese must be in hysterics over the ABC's gold scandal story (that is not really a scandal), because when they rip you off - you get done good and proper....See below!
Rule number 1 of GOLD Club - never BUY GOLD off the Chinese.....Rule number 2 - refer back to rule number 1!
###@ SuperEquity we give our clients the ability to invest via their SUPER into PHYSICAL GOLD, SILVER and PLATINUM BULLION.... Click here and type in 'I want to know more' and we will be in touch.
The Day Ahead
We did see some some solid selling in COMMODITIES overnight, but the impact will be offset somewhat by the $Aussie dollar falling 2%....PMGOLD and NUGG (physical GOLD ETFs) should be up slightly today.
- Our SPI is down 62 points
- Bitcoin down 0.8% to $22,187
Movements affecting our resource stocks today (USD)
- BHP in the US down 2.6%
- Gold down 1.88% to $1819
- Paper Silver down 4.6% to $20.16 (LOL....refer to meme!)
- Platinum down 4.53% to $934 (anything under $2000 per ounce is ridiculous!)
- Copper down 2.75% to $3.97 (copper crisis is coming and market is selling off - hahaha..are you kidding?!!??)
- Brent Crude down 3% to $83.48
- Iron ore up 2.2% to $127.05
Global Market Update
DOW down 573 points to 32,857 (still an hour to go)
Jerome Powell's testimony to congress this morning would indicate that the FEDERAL RESERVE is likely to hike rates by 0.5% or 50 basis points at the next meeting....THE GREAT SQUEEZE IS COMING.
Germans down 0.6%, Brits dipped 0.13% and Frenchies fell 0.46%
Sanctions against Russia are hilarious; US will eventually get the metal once it goes through a few sets of hands....
These big policy moves are designed to create INFLATION.
Key Market Summary