Market Matters Q&A

Sudden drop in Asian ETFs?

Crickey! I’m heavily invested in Asian ETFs, but on Friday 26th it dropped by 4.71%. This was pretty shocking for me, or is just life? It appears to be because of concerns about future demand for the demand of semiconductor, and other picks and shovels supporting the hyperscalers, AI and data centre development.

Fortunately I have read where Samsung and SK Hynix, who dominate in the Korean market, will announce on Monday 29th June investment of “hundreds of billions of dollars” in new production facilities. So very mixed messages here for me.

Do you have any information/insights on these developments? I continue to monitor my funds daily with a view to cash when the time is right. Very difficult!

Bill

Pullbacks & Corrections

Resources (I’m writing this on Monday and also the EOFY, so we’ll see what the coming week brings. In your Webinar, Shawn implied that we commodity investors seem to think that in a bull market we expect our shares to go up every day. That’s a bit condescending. I have shares in Australian and North American companies in gold, silver, uranium and others. I expected volatility right from my first commodity buy in 2019. But this calendar year the majority of them are down anywhere from 20% to 65% and falling. Should I call that a pullback or a whopping big correction? I don’t see how that can possibly look like the beginning of a super cycle. What am I missing?

David

Watching Argo Global Listed Infrastructure Ltd (ASX: ALI) on the Income hitlist

Hello James and crew,

Thanks to Vanessa who helped me through renewing my subscription to the newsletter again – a no brainer really, enjoy every bit of it, thanks to everyone.

Back in May ALI (Argo Global Listed Infrastructure ) was added to the Income Hitlist and a very informative artical was written about it in the newsletter. I have been watching it ever since and whilst the SPP has come and gone I note today that a director has brought a good parcel of shares at $2.54 (SPP $2.40 and NTA $2.68). Would be interested please on MM’s thoughts of a reasonable entry level range.
Thanks, Geoff

Geoffrey

Commodities Supercycle – 5E PGM’s

Hi MM,
Another question. I really enjoyed your Commodities Supercycle podcast – very informative! You don’t mention 5E PGM’s. You do cover gold as a PGM but Platinum/Palladium and the rarer but more valuable Iridium/Rhodium aren’t mentioned. Are you less bullish on these as future facing?
Regards,
Peter

Peter

Alcoa (ASX: AAI) and South32 (ASX: S32)

Are you still positive (see q nd a 27/6/26) on AAI (alcoa) after it’s purchase from s32.

I note AAI fell over 7% on july 1 after a month long downtrend.

Aluminium is high energy user. How do you see energy impaction AAI.

Cheers
Alain

alain

South32 Ltd (ASX: S32) and Aluminium

Hi MM,
Plenty of discussion in the press (and in your daily reports/podcasts) about S32. and its aluminium divestments. Given you are bullish on aluminium and like S32, why is S32 getting rid of its aluminium operations a good thing? Also, S32 still have the Mozambique mine issues that they obviously couldn’t offload as part of this divestment.
Regards,
Peter

Peter

What are your thoughts on Kelsian Group Ltd (ASX: KLS) and Origin Energy Ltd (ASX: ORG)

Dear Team,

KLS seems to be an excellent company for growth AND above average dividends. Those are my 2 favourite ingredients in a stock; the perfect combination. The stock looks good to me except that they have expanded into the USA. I have seen SO MANY Australian companies that have done well in Australia get tarred and feathered when they expand overseas especially when they take a big bite out of the cherry instead of just a nibble. I have heard they also might face margin pressure both here and abroad. Your wisdom would be MOST appreciated.

ORG seems to be on a roller coaster largely due to potential government interference with the natural order of the market. No one has a crystal ball , but, you come very close. Moreover, you own AGL in the Income Portfolio but not, I think, ORG. That is something of a red flag , but , there is a chance both are pretty good but you feel AGL is better.

Keep up the great work. You folks are the best.

Paul

Paul

Aristocrat Leisure Ltd (ASX: ALL) and Light & Wonder (ASX: LNW)

Hi James and Team
Can I have your current view on ALL & LNW.
Over the last fortnight Aristocrat has improved by about 12% while Light & Wonder has dropped by around 18%. MMatters hold LNW in your portfolio. What outlook do you have on these 2 stocks? I hold both ALL & LNW -I’m actually breakeven in ALL at the moment and 16% down in LNW – Is this consumer discretionary sector one to be in at the moment? Would you continue to hold ALL or redirect these funds into another sector of the market? Do you still prefer LNW to ALL?
regards
Debbie

Debbie

Endeavour Group Ltd (ASX: EDV) and Ventia Services Group Ltd (ASX: VNT)

Hi James,

Thanks again for your daily reports – I find them very enlightening and helpful.

You wrote about Endeavour back in March and I was wondering if you had any updated thoughts? According to CommSec, analysts are very divided on this one with 6 buys and 6 sells. Like a lot of investors I received Endeavour shares because I owned Woolworths at the time and have since topped up because they initially did very well. However, now I’m sitting with quite a loss and wonder whether it’s time to sell or could they come back?

Also, I would appreciate your opinion on Ventia as an infrastructure share.

Many thanks,
Judy

Judy

BHP Group (ASX: BHP) or RIO Tinto (ASX: RIO)?

Hi Team,
Many thanks for the very informative CSC webinar today and the effort you guys put in to give us honest and sincere opinions.
Could you please give your choice between BHP & RIO with your reasons.
Thanks.
Shabbir

Shabbir