Trends & Opportunities

Defensive ways to diversify your portfolio

Like many things in life, ‘defensive’ assets do not always behave as promised. But these are particularly unusual times. The Covid-19 crisis has triggered the fastest bear market in history, followed by the fastest initial rebound. Traditional defensive assets provided some protection during the March sell-off, but to a lesser degree than in past crashes….

Saudi Arabia eyes total dominance in oil and gas

Saudi Arabia’s Energy Minister Prince Abdulaziz claimed last week that the Kingdom will be the world’s biggest hydrocarbon producer “even” in 2050. “I can assure that Saudi Arabia will not only be the last producer, but Saudi Arabia will produce every molecule of hydrocarbon and it will put it to good use … It will…

Elections in the time of coronavirus and recession

Investors weighing the outlook for US markets are grappling with two diametrically opposed forces: the recession brought on by the Covid-19 outbreak and the presidential election cycle. The speed and depth of the Covid recession has thrown a big wrench in Donald Trump’s original strategy of campaigning on a very strong economy. Unfortunately for Trump,…

Gold stocks still undervalued

Gold miners’ stocks rocketed out of mid-March’s stock panic, breaking out to major new bull-market highs in mid-May.  Such blisteringly-fast gains, and gold stocks’ upleg stalling out since, have left many traders nervous about this sector.  Calls for a serious selloff are mounting.  But arguing in favor for more near-term gains to come, gold stocks…

Junior Gold Explorers to Watch

On occasion market experts have anointed wild swings in market volatility as a market with a “split personality.” It would be hard to argue that market movements since the potential scope of the COVID-19 Pandemic began to become obvious in mid to late February of 2020 has been anything but volatile. On 19 February markets…

The populations of key countries are shrinking

This new, yet largely ignored, trend comes with underrated economic and social costs. Released by US film producer Mike Moore and timed for the 50th Earth Day in April, the documentary Planet of the Humans tells how renewable sources of energy are flawed replacements for fossil fuels as a way to mitigate the dangers of…

Targeting the 52 Week High Lists

Investors worldwide appear to be questioning the probability of a quick v-shaped economic recovery from the COVID-19 pandemic. Contributing to the dashing of those hopes, at least for this week, is the rising number of COVID-19 cases in parts of the US and now in China and in our own state of Victoria. Towards the…

Biotechs Working on COVID 19

On 11 June Aussie investors got a wake-up call from the chairman of the US Federal Reserve, Jerome Powell, sending the ASX 200 plunging 3%, its worst close in six weeks. US markets followed suit, dropping 4.25% by midday on the 11th and closing down 6.9%, dropping 1,861 points. However, although the ASX closed the…

When Wall Street wakes up to Main Street

The narrative that appears to be being followed on Wall Street in recent weeks looks something like this: Asset prices have rebounded sharply thanks to significant intervention from central banks and policymakers. Rising share prices and tightening credit spreads imply a meaningful recovery in economic activity over the medium term, as pent-up demand and stimulus…

Investor Signposts: Week Beginning 15 June, 2020

Australia: Jobs, tourism & population data in focus In the coming week, the May jobs data will dominate investor attention. But the international tourism, population and retail trade data will also be closely watched. Communication from the Reserve Bank will also be a key focus. The week kicks off on Monday when the Bureau of…