9 June 2022

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

  • Bloomberg Commodity Index vs S&P 500 Index – which is performing better?
  • Are we heading towards a 1970s-style stagflation?
  • Our finance-related tip performance so far this year.

Market Summary

In our February 17th issue of Stock Take, we compared the Bloomberg Commodity Index (BCOM) to the S&P 500 Index (SPX) using a Year-to-Date (YTD) graph. See the first graph below.

The SPX was down about 7% while BCOM was up 10%. We recommended keeping a keen eye out for resource based companies, as it was outperforming most other sectors.

Today we have generated the same YTD graph (see below), and BCOM is now up roughly 37% while the SPX is down 13%.

This trend may very well continue for the foreseeable future due to inflation driving up the cost of living. We think it is still a good idea to keep up with this sector until we start to see a turnaround.

What’s Trending

The World Bank has warned that the global economy could soon suffer a 1970s-style stagflation. Economies may be headed for years of weak growth and rising prices, leading the World Bank to slash its annual global growth forecast from 4.1% to 2.9%.

Find out how this will affect the stability of countries across the world in this article from The Washington Post.

Tip of the Week

This week’s tip of the week is for a company engaged in the online grocery supplies business. The company’s share price is recovering after an extended period of weakness.

We issued three new tips this week.

Stockland Corp‘s (ASX: SGP) share price is trending downwards and appears to have little support, meaning a short sell looks to be the way to go.

Coca-Cola (NYSE: COKE) has had a strong upturn and is starting to weaken, leading us to recommend to sell and take profit while ahead.

My Food Bag (NZX: MFB) has a positive outlook, as it has been reducing debt and earnings are forecasted to grow steadily.

See more of our recommendations and analysis here.

Top Tips

The finance sector is having a topsy-turvy time for many reasons, including but not limited to, Covid-19 and inflation. It’s not all bad news, however, as there has been some success in the sector.

Here are our top performing finance-related tips from the past six 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!