Trading & Technical Analysis

Why gold is still a safe haven in times of crisis

“Gold” said famed investor Warren Buffett in 1998, “gets dug out of the ground in Africa or someplace, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” Yet for all that, we…

Morrison urges unions, bosses to cooperate

The prime minister has called for workers and bosses to unite on industrial reforms aimed at stimulating productivity after coronavirus. The coalition has signalled workplace laws will be a target reform area on the road to economic recovery once the pandemic subsides. Scott Morrison said Australia’s economic resilience had motivated employers and employees to settle…

Renewable Energy in the Post COVID-19 Era

All over the world countries are already or soon will be dipping their toes into the process of lifting “stay at home” efforts. It seems the global consensus, which may be in error, is that COVID-19 is slowly winding down, opening the door to efforts to begin reviving economies crushed by the lockdowns. The financial…

Survival of the Fittest – Iron ore versus Oil

One month ago, the ASX closed its worst trading month in history. One month later, the ASX has closed its best trading month ever. In the US, the Dow Jones Industrial Average (DJIA) recorded its best month in 33 years. Volatility persists, as market sentiment bounces back and forth between enthusiasm over any news on…

How COVID-19 is impacting the ASX

COVID-19 hit equity markets around the world swiftly and sharply. Equities, as is often the case in crises, have been characterised by exceptionally high levels of volatility, as increased weightings in illiquid assets have forced many investors to liquidate where they can rather than where is most logical. Recent years have been characterised by complacency…

Economic shock exposes vulnerable valuations

The continued spread of COVID-19 across the world has administered a shock to the global economy, with material impacts already felt on both the supply and demand side. Yet while central banks and governments appear ready to take further measures, it is not yet clear whether they will be enough to counteract market headwinds. In…

Gold stocks exhibit strong seasonality

Before their recent surge on gold regaining $1600, the gold stocks spent much of the past half-year or so largely drifting sideways to lower. That high consolidation really weighed on sentiment, with greed giving way to apathy. This sector normally tends to suffer a seasonal slump into mid-March, paving the way for gold stocks’ spring…

Junior Gold Miners Worthy of Consideration

On 18 February investors around the world, apparently firm in their belief the economic impact of the coronavirus would be short-lived and relatively minor, were shocked when the largest company by market cap in the world – Apple Inc – announced the coronavirus in fact would make it “unlikely” the company would hit its First…

Hunting for income: Three things to consider

With interest rates likely to be lower for longer, investors are seeking yield from potentially riskier investments. We analyse alternatives and share three key factors to consider in the hunt for income. Record-low interest rates pose a challenge for income-oriented investors. That challenge is particularly acute for those living off the income from cash investments….

A sizzling summer for stocks

Australian share markets have had a roaring start to 2020, with sizeable gains driven by momentum stocks, especially in IT and healthcare. Yet while companies like CSL are undoubtedly impressive, a closer inspection reveals some troubling nuances to the growth story, calling into question the high expectations imposed by a growth-starved market. It wasn’t just…