Market Update 7/5/24 – Let’s have a quick look at what’s catching my eye today.
After a sharp pull-back in April, the S&P 500 looks ready to retest all-time highs.
So much for being a hedge. The gold price chart looks like so many other charts currently.
This probably explains why markets are happily rising again. The US 10 year bond yield has started to fall again.
A falling oil price is good for inflation which probably has a lot to do with all of this bullishness too.
The Lithium miners are once again trying to stage a recovery. Should we see it push up through the orange and then red long-term moving averages, Pilbara Minerals (ASX:PLS) will be fascinating to watch with short positions now exceeding 22%.
MMA Offshore (ASX:MRM)
I noticed this one hit a new 12 month high yesterday. They are currently under takeover at $2.60 however the bid looks too low especially when their reported results since the takeover announcement have been very impressive. I would argue that the share price would be higher today in the absence of the take over. The market seems to agree and is indicating that the bidder may need to increase their offer to get this one.
ANZ Group Holdings (ASX:ANZ)
Like Apple (NASDAQ:AAPL), these guys announce a big buy-back on falling profits and will probably rise today. When I quickly look to see if Westpac (ASX:WBC) increased earnings or not yesterday all I can see is headlines about a special dividend and a buy-back. Earnings don’t really seem important for these companies right now. Macquarie Group (ASX:MQG) has a big fall in profits and hardly moved on the announcement too.
GQG Partners (ASX:GQG)
Funds under management fell in April but this needs to be put in the context of the falls in markets during the month. At the ASX was down over 4% for instance.
For comparison, here are the numbers from Magellan Financial Group (ASX:MFG) announced to market yesterday. The market cap of (ASX:GQG) is $7.383B while (ASX:MFG) is $1.58B. That makes (ASX:GQG) a larger company by 4.67x while it manages 3.91x more funds. In other words, you’re paying more for a dollar of funds under management if you invest in (ASX:GQG) than if you invest in (ASX:MFG). Perhaps there is some value emerging in (ASX:MFG)? It must be noted that (ASX:MFG) has seen sustained outflows for many months which now may have stabilised. On the other hand, (ASX:GQG) has seen over $6B of inflows for the year to date.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Market Update 7/5/24