The crypto fluctuations and the increase in mortgage rates sets the scene for investing this week. All that makes sifting through pages of newspapers and scrolling endlessly through online blogs trying to find financial tips extremely difficult and time consuming. So we’ve made that easier for you.
The Motley Fool: Hames Mickleboro
A2 Milk Company Ltd (ASX:A2M)
UBS, the largest private bank in the world, believes that A2 Milk’s efforts to streamline its inventory are working without having a negative effect on its brand. The broker’s research also indicates that pricing for a2 Platinum is rising. The a2 Milk share price ended the week at $5.55, while UBS is maintaining a price target of $12.50.
Afterpay Ltd (ASX:APT)
Macquarie Bank analysts have given Afterpay shares an ‘outperform rating’, assigning it a $120 price target, which is 27% higher than its current $93 price. Macquarie expects the buy now and pay later market to continue growing over the next decade and Afterpay’s wide cast network has it well positioned to benefit from the market growth.
BHP Group Ltd (ASX:BHP)
More information from Macquarie shows that they still have BHP at a $57 price target, above its current share price of $47.75. BHP is expecting a record second half in 2021 due to inflated iron ore prices, which could mean higher divides than previously expected.
Yahoo Finance: Jessica Yun
If you’re looking to invest in property, regional is a good way to go. Finance journalist Jessica Yun spoke to property research firm CoreLogic’s research director Tim Lawless, about the growth in regional property costs. CoreLogic’s data has revealed that rents in regional areas have grown three times faster than rent in capital cities.
Mr Lawless comments: “This can partly be explained by the new popularity of remote and flexible working arrangements, but also increased demand for lifestyle oriented properties and holiday homes.” He also lists the relative affordability of regional homes as an important factor in increasing demand. With the median price of a regional home being $247,000 cheaper than one in a capital city, this makes it a much more realistic option for a lot of investors and home buyers.
Record-low interest rates have been ushering in a wave of first-home buyers, if you’re looking to join them then a regional property could be not only within your financial reach, but potentially set to grow in value faster than a city property.
The Australian: Roger Montgomery
Not for the faint hearted, Mr Montgomery offers three left-field ideas for investments in The Australian. He notes an initial hesitation as these investments are less conventional than oil, which he opted for last year and warns investors to remember to allocate some capital on their risk appetite and some on their financial circumstances and needs.
Ethereum is the second-largest cryptocurrency, representing more than 15% of the crypto market. Key to this investment advice is that NFT’s (non-fungible tokens) have been built on the ethereum network. NFT’s have recently shown to a much wider audience their potential for digital assets and thus, their potential as a disruptor. The ethereum platform is the largest platform on which NFT’s can be built on, which leads to Mr Montgomery drawing the conclusion that Ethereum stands to highly benefit from the rise of NFT’s.
Mr Montgomery reasons that with “pandemic-induced plant shutdowns and a global semiconductor chip shortage, car deals and manufacturers need a global rubber shortage like a fish needs a bicycle.” Also noting that rubber prices were previously quite low which gave growers little reason to plant high levels of rubber trees. Furthermore, shortly before COVID, rubber trees in Thailand, Vietnam and Indonesia were affected by a leaf disease. However, rubber demand is now rising, meaning the possibility of a rubber shortage is fast emerging. Natural rubber prices have begun to rise and seem set to continue.
Mr Montgomery says his final investment suggestion of uranium is more controversial. However he makes the point that when electric vehicles take off, petrol stations’ losses will be electricity producers’ gains. Global electric vehicle sales have grown from 110,000 in 2012 to almost five million in 2019, with growth expected to skyrocket. According to the world nuclear association, if all of the additional electricity demand from electric vehicles is supplied by nuclear power, another 25 plants would require construction. Meanwhile, despite being the most widely used fuel for nuclear plants, uranium mining operations have been declining. The uranium global supply deficit is predicted to average more than $40 million through to next year. As a result, Mr Montgomery sees a rise in uranium prices as inevitable.