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Rates are finally rising – how do investors react?


Although it was completely unforeseen just a few weeks ago, the RBA’s decision to raise interest rates by 35 points, announced on Tuesday, actually seemed something like an anti-climax. It is easy to forget that the RBA until recently was adamant that rates will remain at least until the end of 2022 and probably until 2023, when wage growth will not be clearly evident, but inflation data well above the target rate has forced its hand.

In the U.S., the Federal Reserve raised rates by another 50 points on Wednesday night and was shaken by stock markets, which rose more than 2% as investors feared the Fed’s next move would be closer to 75 points. The end of an extremely kind monetary policy has come.

ASX abandoned the RBA move and closed the last five days almost unchanged. The worst day of the week was Monday, when U.S. markets were rocked by Amazon’s first quarterly losses since 2015, and Apple reported significant supply chain disruptions due to Covid-related blockades in China; Australian technology stocks have fallen sharply and all sectors have been in the red, but investors have seen limited buying opportunities and most nabtraders have stayed away.

The level of cash continues to rise as investors hope for a rollback – or perhaps the first decent return on their savings in a few years. Batteries continue to buy ASX200 through ETFs; they are now regularly in the top 10 purchases for those not trying time in the market.

For collectors, Fortescue Metals Group (FMG) remains a favorite, but volumes fluctuate significantly. BHP (BHP) is a consistent purchase because investors see value in resources, one of the few sectors that can retain their value in the face of inflation. Pilbara Minerals (PLS) also recently returned to the table of the most traded after a period of lack of interest from investors. Although PLS shares recently had a small jump and rose 140% in 12 months, they well exceeded their 52-week high of $ 3.89. At $ 2.81 investors are starting to see the price and buy.

Pilbara Minerals (PLS) shares for 12 months

Source: nabtrade

Due to the fact that three of the four major banks report their half-yearly profits, investors are again fascinated by the financial performance of ANZ (ANZ) stocks fell modestly after the market renewed on Wednesday. ANZ is usually the least traded of the four major banks on the nabtrade platform, but it has found favor among high-value investors who have bought shares. Westpac (COM)WBC) did not report until next week and saw mixed trading, while nab (NAB), which reported on Thursday, also saw enthusiastic purchases. Sale at Commonwealth Bank (CBA) may have financed the purchase.

In other financial data, Magellan Financial Group (MFG), an extremely popular fund manager who has experienced a significant decline in his fortune over the past 12 months, has risen more than 10% in the last couple of weeks and has shrunk as a result.

Qantas (QAN) updated the market, announcing that next fiscal year it will return to profitability and power will return to 105% from levels before Covid next month. Despite the fact that the company’s share price rose by almost 15% compared to the same period last year, the company’s share price did not reach its 52-week high, which gives investors the opportunity to record profits. Flight Center (FLT) shares were also sold; FLT has grown 20% since the beginning of the year and more than 30% in 12 months.

The Flight Center (FLT) has been shared for over 12 months

Source: nabtrade

In international markets, Amazon’s unexpected loss shook the Nasdaq; АМЗН.НАС shares fell nearly 15% in the aftermarket on Friday. The loss was more than taken into account by writing off 20% of the e-commerce giant’s shares in Rivian (РВН.НАН), the manufacturer of electric vehicles on which Amazon hopes to electrify its fleet; Rivian shares have fallen nearly 70% since their listing late last year. Online sales fell 3%, causing outrage among investors, but Amazon Web Services’ cloud solution continues to be one of the leaders in its field. Nabtraders added their stocks to Amazon.

Amazon (AMZN.NAS) shares for more than 12 months

Source: nabtrade


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