Leaders

And there goes the 2022 financial year. It flew by at the blink of an eye. A pandemic, a few supply-chain disruptions, a war in Europe, rising energy prices, climate change and soaring inflation. What more could you ask?

Following the reopening of global markets post-Covid, there was a sudden change in macro-economic conditions caused by massive stimulus spending and supply constraints, and central bankers were caught asleep at the wheel while inflation surged in the background. Central bankers are now talking tough.

It’s been a relatively difficult two years for market darling CSL Limited. Despite the lacklustre recent performance, here are five reasons to be bullish on CSL.

Share trading platform eToro was able to show which global companies recorded the biggest increase and decrease in shareholders on its platform during Q2. Here are the top and bottom ten companies.

Morningstar has released its Best Stock Ideas, which highlight the top Australian and New Zealand companies that are trading at a discount to their fair valuations. This month it has 15 companies in its list having added Fineos Corporate Holdings and Newcrest Mining.

As we say goodbye to a volatile financial year, most investors are glad it’s over and can’t wait to say hello to FY23. Markets will be hoping that this new financial year will bring about calmer trading conditions with fewer geopolitical tensions and no devastating pandemics.

Following two years of heightened volatility, brokers are already out making grand declarations and stock predictions of what will transpire in the new financial year. Macquarie, one of the first to put together its dream portfolio built to survive a recession, believes the bear market we are currently experiencing is split into two parts.

The latter half of 2021 and the majority of 2022 have been among the most challenging periods for investors in several decades. The traditional balanced portfolio, defined as one that holds 40 per cent of assets in government bonds and 60 per cent in indexed equities, is on track for the sixth-worst beginnings to a year in the last century.

The exchange-traded fund (ETF) sector has been among the biggest winners of the pandemic, seeing significant inflows and more investors entering the market. Among the most popular strategies to come to market have been so-called ‘thematic’ ETFs, which offer exposure to a secular trend or opportunity.

Young investors are seemingly undeterred by the equity market volatility, according to share trading app Pearler. Pearler claims that on average, eight out of ten trades by its young customers are on the buy-side, versus two trades on the sell-side.

Legendary investor Ray Dalio has warned against believing all will be well if central banks simply increase interest rates to get inflation under control.

It’s time to start buying quality stocks that have fallen sharply over the last six months. This is the view held by Roger Montgomery, founder of Montgomery Investment Management. Given that valuations have come off, Montgomery believes investors have a far better chance of making attractive returns buying now; with one big caveat – that these businesses grow their earnings.