29 October 2021
Welcome to the last issue of Stock Take for October. Here’s a wrap up of what’s happened this month.
Market Overview
For the first time in months, the price of gold (blue line) is moving up faster than the NZ share market (yellow line). This may reflect that precious metals have been badly beaten down for much of this year in the face of a strong US dollar and investor preference for alternatives such as crypto currencies.
However, now that inflation is back for the first time in decades and does not appear to be as ’transitory’ as central bankers are claiming, people are rediscovering the value of precious metals as a store of value. The best way to think of gold is that it is the one true item of value and that the price of everything else goes up and down relative to the metal, not the other way around.
Our pick is that the price of precious metals will trend up strongly for the next several months at least.
What’s New
Ever wondered how Stockfox’s analysts know when the best time to buy and sell company’s shares is? To find out how we do it, read our case study about how our team identified the ideal buy and sell points for Briscoe Group (NZX: BGP), allowing Stockfox subscribers who acted on our recommendations to make a gross profit of 20.49% in 19 weeks.
You can read it in the ‘Learn’ section of the app or on our website.
Tip of the Week
This week’s tip of the week is for an NZX-listed electricity generator and energy wholesaler. The company has become a solid dividend producer after selling its retail division and has a forecast dividend yield of 5%.
See the tip here.
Top Tips
The supply chain for food and food processing products has been seriously disrupted, but it hasn’t been all that bad for some of NZ’s well-known companies.
See the results of our best performing fisheries and dairy industry tips from the past three months.
See the performance of all Stockfox 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.
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