23 June 2022

Here’s what’s new from Stockfox this week:

  • Are we experiencing a bear market rally?
  • This retail drinks company is a substantial player in its industry.
  • Is there a 50% chance of a global recession as rates rise?

Market Summary

Below is a 1 year graph of the Dow Jones Industrial Average Index (DJIA). There has been a partial recovery in the past few days and many may think this could be the start of a major upturn.

However, we are not yet convinced and there is a possibility of this being what’s known as a bear market rally. A bear market rally is a short upswing while the overall market trend is downwards. We would start being optimistic once the DJIA rises above 34,000, which is a key support line. Until then, we encourage investors to remain cautious.

What’s Trending

Deutsche Bank and Citigroup Inc have warned that the global economy may be headed for a recession, as central banks step up efforts to curb inflation. Deutsche Bank’s CEO believes there is a 50% likelihood of a recession globally. Read this Bloomberg article to find out how we got here and what may happen next.

Tip of the Week

This week’s tip of the week is for a company engaged in the retail drinks and hotel industry. The company is a substantial player in an industry with strong demand and excellent cash flows.

We’ve issued four new tips this week.

ikeGPS Group (NZX: IKE) continues to weaken. Further declines can’t be ruled out.

Endeavour Group (ASX: EDV) has a positive outlook, as its earnings growth is expected to be in the double digits.

We recommended buying back Beacon Roofing Supply (NSADAQ: BECN) as its sharp period of weakness seems to be ending.

It’s time to take profits with Vector (NZX: VCT), as its share price seems to be topping out.

See more of our recommendations and analysis here.

Top Tips

As the world continues to open up its borders, travellers are taking up the opportunity to go on well-deserved holidays. This has had benefits on some tourism-related companies.

Here is our top performing tourism industry tip from the past three months.

See the performance of all tips here.

NB: These are examples of just some of Stockfox trading recommendations. They are not a reflection of the success of all Stockfox tips, nor are they necessarily an indication of the success of any future Stockfox tips. If you act on our advice, there is no guarantee as to the repayment of your investment or any particular rate of return.

Happy trading!