Dear %%first_name%%,
In case you missed it, though you probably haven’t, this has been a great start to the stock market year, after a ripper of a one in 2019. The gain since the start of 2020 is 5.7% and the question many of you have to be asking is: “How long can this last?” I attempt to answer this question for you today.
An unusual event occurred in thin post-Christmas trading on the ASX. Australia’s major listed investment companies (LICs) blew out to a premium to their NTA (net tangible asset value). And despite the market rallying 5.7% already in January, AFI is currently trading at a premium and is in sell territory. In his article, Paul Rickard says that for investors seeking an easy way to gain broad based exposure to the Australian stock market, there is better value to be had with index hugging exchange traded funds.
And for those investors looking for income as rates look set to go lower, James Dunn has researched three industrial stocks with interesting yield situations for you to check out.
And in Buy, Sell, Hold – What the Brokers Say, it seem that a rallying stock market led to more downgrades than upgrades by broker analysts last week, with 16 downgrades versus 11 upgrades. QBE was a surprise upgrade.
Finally CMC Markets’ chief market strategist, Michael McCarthy, explains why he likes Evolution mining (EVN) but doesn’t like Rio Tinto (RIO).
Our first webinar for 2020 will be on Friday 31st of January so look out for our registration emails.
Sincerely,
Peter Switzer