24 February 2022

Welcome to our weekly update about the share markets. As we near the end of February (where has the time gone?!), let’s have a look at what’s been happening at home and abroad.

Market Overview

Spooked by Russia’s incursion into contested provinces of Ukraine, the US market – represented by the Dow Jones Industrial Average in the graph below – has broken down below the 34,000 mark for the first time in 8 months.

We believe this is a significant breach that could lead to further declines.

The one unknowable is how long this negative sentiment will last. If a diplomatic resolution is found, prices could bounce back quickly.

However, as long as the market stays below 34,000 then we encourage investors to be conservative by selling their more speculative holdings; increase exposure to ‘safe haven’ sectors such as resources, utilities and the medical sector; and keep a higher percentage of their portfolios in cash to take advantage of bargains that may emerge.

Did You Know?

Did you know that if you come across a company tip that interests you, and you want to keep an eye on it, you can add it to your Watchlist in Stockfox? The Watchlist is where you can track how the companies you’ve invested in — or simply want to follow — are performing.

To save a company to your Watchlist, click on the bookmark symbol next to the ‘Buy’ or ‘Sell’ button on the tip. To view your Watchlist, click on the ‘Watchlist’ in the menu.

Tip of the Week

This week’s tip of the week is for a NASDAQ-listed developer and operator of a Tex-Mex restaurant chain. The company’s latest results showed EPS growth that was well ahead of expectations.

See the tip here.

Top Tips

Here are two of our best performing healthcare industry companies over the past three months, plus one where we didn’t get it quite right but issued a stop loss recommendation to help investors mitigate the impact of the price reduction.

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.