ANNOUNCEMENT: New Research on the Return of $100 Oil (And the One ASX Stock to Play It) Could we see oil prices creep back above $100 by this time next year…and stay there for years? That’s the contention of our new report into the energy markets…and it’s ASX stock ramifications. If this happens, it’ll be bad news at the petrol pump. But spectacular news if you make the right stock plays now, before the trend chasers. We showcase one sub-$2 play for you here. |
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Aussie Shares, But Global Opportunities! |
Wednesday, 5 June 2024 | By Callum Newman | Editor, Small-Cap Systems and Australian Small-Cap Investigator |
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[3 min read] In this Issue: A great little show on Netflix ‘Aussie’ stocks that can benefit even in Australia’s weak economy Ireland is now the second richest country in Europe — after Luxembourg |
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Dear Reader, Oh, the craic! Excuse me for starting today’s missive with a bit of Irish. I’ve got Ireland on the brain. You’ll see the connection to today’s share market below. But first… There’s a great little series on Netflix right now called Bodkin. Bodkin is a small town on the coast of Ireland. A trio of podcasters go there to investigate a twenty-year-old mystery. Several locals went missing on the night of the town festival. There are ghosts in the town from the events of all those years ago. One of the old local boys is called Seamus. He’s a big, bearded fisherman at the pub with a glint in his eye and a dangerous past. Slowly our intrepid podcasters discover that Seamus may not be his true name at all…and his old life was likely on the wrong side of the law. In other words, his past misdeeds catch up with him and disturb his 20 years of hiding out in a sleepy Irish village. There’s a whole lot about that story that rhymes with where the Aussie economy is right now… The Australian economy isn’t at its best, that’s for sure Look at the news right now. You hear about Australia’s low productivity. Wages are stagnating. House building is crumbling…just as rents are soaring. Energy costs are going up. Insurance bills are climbing. The Victorian housing market is a yawn fest. These are the symptoms we’re experiencing today…but the cause goes back to the decision made years ago. Or perhaps it would be best to say the lack of decisions. I cannot remember the last Prime Minister of this country that presented some sort of coherent vision for the Australian economy…and put in some dynamic policy changes to make it happen. And so, like Seamus in Bodkin, we’ve hid in our corner of the world and hoped that the past (and the future) wouldn’t catch up with us. But it’s catching up to us now. We have the same reliance on Chinese commodity demand that we did 20 years ago. There’s been no serious tax reform even after the Henry Tax Review a decade ago made clear that it needed to happen — with urgency. And for all the blather I’ve read about real estate over the years, here we are in 2024…with a housing affordability crisis. Australia’s GDP growth is on track to be the weakest since 1992. What does this mean for the share market? Clearly companies exposed to domestic spending face a subdued outlook. Does that mean there’s no opportunity on the ASX? Not at all! For example, just because a company is listed in Australia doesn’t mean it operates in Australia. An absolute belter of a stock in the last 12 months is called Life360 [ASX:360]. It’s doubled in price. Life306’s main user base is Americans! American GDP is smashing the rest of the world right now. That’s just one example. Another US company listed in Australia is GQG Partners [ASX:GQG]. GQG is a fund manager. They’ve doubled their share price within the last 12 months too. Why am I telling you this? These are just two examples of ASX shares that generate their major growth in overseas markets. The state of Australia’s domestic economy doesn’t factor one iota into their prospects. Don’t confuse bad news at home with the idea that there’s no opportunity at home! There are heaps of example like this. We have West African gold miners on the ASX. There’s a manganese miner that operates in South Africa. Copper stock Sandfire has a mine in Spain. A lot of the biotech stocks are trying to crack the US healthcare market…because it’s the biggest in the world. Or big companies like ResMed [ASX:RMD] already sell in the USA. I could go on and on… One stock I told my readers to buy earlier in the year is called DroneShield [ASX:DRO]. Its main customer is the US military…but its products are manufactured here in Australia. My readers who got on this one from the get-go are a whisker off doubling their money in three months. And while there are no guarantees these results will continue… I think there’s plenty more potential in it too. To see why, do make sure you go here to discover the biggest trend of them all. I can tell you one thing…Australia’s economy doesn’t even factor into it at all. That doesn’t mean you can’t benefit from it! Best, Callum Newman, Editor, Small-Cap Systems and Australian Small-Cap Investigator Callum Newman is a real student of the markets. He’s been studying, writing about, and investing for more than 15 years. Between 2014 and 2016, he was mentored by the preeminent economist and author Phillip J Anderson. In 2015, he created The Newman Show Podcast, tapping into his network of contacts, including investing legend Jim Rogers, plus best-selling authors Jim Rickards, George Friedman, and Richard Maybury. He also launched Money Morning Trader, the popular service profiling the hottest stocks on the ASX each trading day. Today, he helms the ultra-fast-paced stock trading service Small-Cap Systems and small-cap advisory Australian Small-Cap Investigator. | By Bill Bonner | Editor, Fat Tail Daily |
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[3 min read] Dear Reader, A protestant pastor walks into a brothel in Dublin. ‘Outrageous’, said Paddy, drinking Guinness at a bar across the street. ‘Sinful’, added Sean, his tablemate. ‘Diss-gusting’, was the judgment of Declan, slightly drunk. A few minutes later, a Jewish Rabbi was seen entering the notorious establishment. ‘Will you look at that’, says Paddy. ‘Unbelievable.’ ‘These people just have no sense of shame. No morals’, Sean concludes. ‘Dish-gusting’, Declan, now even drunker, opines. The three men go on with their discussions when Paddy notices a Catholic priest going in the same unmarked door. ‘Oh my... one of the girls must be sick’, says he. Sean nods in approval. ‘Well, itsha house of ill-repute, ha ha.’ ***** The old Dublin was a place of fun... of piety and recklessness. It was on display in last week’s Irish Sun newspaper. ‘May God comfort an already broken family’, said Father Michael Casey as he put Edward Hutch Jr. in his grave. The ‘already broken’ part was the result of an incident in 2015 when Gary Hutch was shot dead, allegedly by a member of the Kinahan family. This led to the murder of David Byrne, one of the Kinahan clan. Gerry ‘the Monk’ Hutch was charged with the crime, but not convicted. But Eddie’s dad, Eddie Sr., was killed at his Dublin home...‘in a revenge hit’, says the paper. Altogether, the Kinahan-Hutch feud has resulted in 18 killings. Two of the survivors are Eddie Hutch’s younger brothers. Both would have liked to attend the funeral, but they are currently serving time at Wheatfield Prison. The Hutches and the Kinahans, like the Hatfields and McCoys, are relics of an earlier time... a wilder, poorer Dublin. ‘Oh... if I’m honest... Dublin isn’t an Irish city anymore’, said the taxi driver. Americans will say ‘to be honest’, already raising doubts about their habitual veracity. The Irish take it further. ‘If I’m honest’ puts you on notice that what follows may or may not be God’s Own Truth. ‘How do you mean?’ we asked. ‘It’s an international city now. Not at all like the old Dublin.’ Dublin is still grey. Its old public buildings and handsome Georgian private houses still grace the centre part of town, near St. Stephen’s Green. There are still some pubs and tour companies offering to show Americans the “old Ireland.” And there are still a few wrinkled taxi drivers able to speak the old brogue... and keep a few jokes on hand for visitors from Boston. It must be a huge disappointment for Irish Americans. They think they hear the harp... the bagpipe and fiddle... and a tenor calling from across the glen. ‘Oh father dear, I oft-times hear you speak of Erin's isle Her lofty hills, her valleys green, her mountains rude and wild They say she is a lovely land wherein a saint might dwell So why did you abandon her, the reason to me tell’ But then, arriving at Dublin airport... they are straightaway transported to a prosperous, modern city... with a section — the Silicon Docklands — that could be in Kuala Lumpur or Vancouver. Today when we call a cab, the driver is more likely to be from Bangladesh than from Tipperary. And often, we feel like the most ‘Irish’ person on the tramway. There are Pakistanis, Africans, Chinese, Malays, Spaniards, Brazilians...not just one or two, but whole groups of them speaking their native languages. They are almost all young...and, we presume, employed by Ireland’s booming tech sector. “I guess Dublin is more like New York than New York itself. It’s a real melting pot,” explained our taxi man. Ireland is now the second richest country in Europe — after Luxembourg. According to UN estimates, Ireland has a GDP per capita of $101,000. The US has only $69,000. The Old Ireland was poor and wild. The New Ireland is rich and tame. More to come... Regards, Bill Bonner, For Fat Tail Daily All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment. |
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