2 March 2022

Welcome to another Stock Take issue, your weekly recap of what’s trending in the share markets.

Market Overview

The chart below shows Exchanged-Traded Funds (ETFs) for oil and wheat for the past 12 months. As you can see, they are both hitting 52-week high points.

There are various reasons for this. A major one is that in times of uncertainty, investors seem to move their capital into ‘safe haven’ investments considered more tangible than other options like technology stocks, for example. Therefore, oil has had a huge price increase.

Wheat has also had a substantial jump in both price and volume since Russia’s invasion of Ukraine. Russia and Ukraine are two of the biggest exporters of wheat, so the conflict between the two countries will undoubtedly disrupt their supply chain.

This in turn will decrease the amount of wheat available around the world and therefore it has increased in price. We expect this trend to continue until the Russia-Ukraine conflict reaches some sort of resolution.

What’s New

Russia’s invasion of Ukraine has created a severe geopolitical event that’s impacted share markets around the world. While this has caused panic among some investors, it’s important to keep in mind what the actual effect events will have on the shares you own.

We recently sent out a special editorial about what tends to happen when such an event occurs and its after-effects. In case you missed it, you can read it on our website here or in the ‘Learn’ section of the app.

Tip of the Week

We have sent out three tips so far this week. Ryman Healthcare and Codan‘s share price have risen slightly due to the Russia-Ukraine conflict, while the other worldwide disruption, Covid-19, has benefitted Nexstar Media Group‘s earnings.

This week’s tip of the week is for a NZX-listed healthcare company. The company’s share price is being re-rated, as geopolitical tensions point to economic disruption.

See the tip here.

Top Tips

Here are two of our best-performing manufacturing industry company tips 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 and move on to other opportunities.

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.