FNArena’s Weekly Insights – June 15 2020
Dear time-poor investor: as investor enthusiasm has temporarily run out of breath, not every ASX-listed stock is treated equally
-Momentum Swings Now Maketh The Market
-Baillieu’s Restart Australia strategy
-Monthly Biotech Update
-FNArena Talks (And Presents)
-Watch The Index Deletions & Inclusions
Momentum Swings Now Maketh The Market
By Rudi Filapek-Vandyck, Editor FNArena
There are times when earnings forecasts and dividend estimates are the most important driver for equities, while on other times they are largely being ignored.
Where are we at now?
Depends which side of the market we choose to focus on. When it comes to quality, reliable performers such as Woolworths ((WOW)), a2 Milk ((A2M) and Appen ((APX)), investors think they have a reasonable idea what growth looks like this year and next.
This immediately puts a restraint on how high these share prices can rise, unless investors suspect upside surprise, which might apply to, for example, Appen.
In the absence of such positive surprise potential, a lack of investor enthusiasm has kicked in over the weeks past, as witnessed by share prices for Woolworths and a2 Milk drifting lower.
The same has happened for Fisher & Paykel Healthcare ((FPH)), Coles ((COL)) and a few dozen others investors sought out during the early recovery phase in March/April.