Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Electric vehicles, vaccines among most traded – eToro
Global multi-asset investment platform eToro has revealed its Top Ten most-bought stocks by Australian retail investors. 2021 portfolios look very similar to those of 2020 as investors pile into a mixture of high-growth stocks in industries such as electric vehicles (EVs) and the sharing economy, as well as stocks that support the global pandemic relief efforts.
Top 10 bought stocks by Australian investors – on eToro in December 2020
Josh Gilbert, market analyst at eToro, says “Nio’s share price traded lower in December for the first time since March, putting its recent impressive gains to a halt. Its share price dropped more than 3% in December. From the 23rd of November to the 14th of December, its share price fell 24%, which is the biggest pullback we’ve seen from Nio in 2020. Many investors would have seen this as a great opportunity to buy Nio shares at a more attractive price after continuous monthly gains.”
In similar fashion, Tesla saw a massive jump in activity and was included in the S&P 500 Index sending its share price up more than 20% in December, with a market capitalisation pushing past the US$600 billion mark. Wall Street analysts have given the stock a price target well over $700.
Pharma company Moderna saw its share price rise on the back of news that the US Food & Drug Administration (FDA) would meet to approve its vaccine for COVID-19. On the 18th of December, the FDA issued the company its first-ever FDA approval. Despite this, Moderna finished down 30% in December due to a slower-than-expected rollout of the vaccine in the US, which put its rivals Pfizer and BioNTech a step ahead.
Airbnb was one of the most anticipated IPOs for 2020, with its price more than doubling on the first day of trading, reaching $140 against the IPO price of $68. eToro says “With so much talk around its IPO throughout the year, and with the travel industry being affected heavily by COVID-19, Australian investors were keen to buy Airbnb from the outset. As a profitable business and with strong resilience through the pandemic, it’s clear to see why so many investors were keen to invest.”
Bionano Genomics, once a penny stock, skyrocketed more than 500% in December from 50c to US$3.00 a share. eToro says “the pharmaceutical company’s listing on the Nasdaq soared after it announced a comprehensive analysis of a single genome of a high-functioning individual with Autism Spectrum Disorder, which would help improve health options from individuals with Autism. With its share price rocketing over the Christmas period, it caught the attention of many investors. With a limited number of products at this point, the company has raised eyebrows with its eye-watering gains and investors will need to remain cautious over its future prospects.”
