Dear %%first_name%%,
In his article today, Charlie writes to you from New York, following a week of meetings with companies, investment banks, analysts, strategists, fund managers and executives. The timing of his trip coincided with a bout of heavy volatility on Wall Street, largely a result of the trade dispute. He says it’s helpful to be on the ground to understand what’s driving such volatility and whether it provides another buying opportunity in leading US equities, or if it’s something more serious. Charlie shares his insights following a significant few days in the Big Apple.
The bulls say corporate America is healthy and will surprise to the upside. The bears say the US market is poised for a major crash. In his article today, Percy Allan, who works with us on Market Timing Australia, we hear the case for the bulls and the bears and then Percy gives his take on where the market is heading.
Meanwhile, Tony Featherstone wrote favourably about plumbing goods company Reliance for this Report several times after its float at $2.50 a share. In early 2018, he nominated it as a top stock on my Money Talks on Sky. The idea worked well for many of our readers. Tony said Reliance was one of his favoured mid-cap stocks at the time and among the best IPOs he’d seen in years. In his article today, he says Reliance’s share price may get worse before it gets better but this high-quality company deserves a spot on the portfolio watchlists of long-term investors who understand the risks of globally-focused mid-cap companies in cyclical industries.
And in Buy, Hold, Sell – What the Brokers Say, AGL, CBA, Wesfarmers and Woolworths are among the 15 downgrades from stockbrokers so far this week, while 6 stocks have been upgraded.
Finally, in Questions of the Week, Paul Rickard answers your queries on the Woolworths buyback: do you buy back in?; Sonic Healthcare: is it a buy?; and advice for “young ambitious investors”.
Talk to you Saturday!
Sincerely,
Peter Switzer