Tuesday, November 12, 2024

Commodities & Mining

1-19 out of 19 results.
CommoditiesStock storiesESG, renewables, climate change
Woodside case study Part 2: Since 1980 – struggling producer to global giant to fossil fuel pariah!

How Woodside went from cash-strapped explorer to global giant and one of Australia’s biggest export earners. Still a wild ride for investors – as a leveraged bet on commodities prices, plus political risks. Despite huge profits and becoming a top-10 ASX company, still struggles to beat the overall market.

Ashley Owen Oct 10, 2024
Commodities & MiningSocial & EnvironmentalCommoditiesStock storiesESG, renewables, climate change
Woodside case study Part 1: 1954 to 1980 – volatile speculative survivor to national hero

Good case study representing the vast majority of ASX listed companies – as a volatile speculative hopeful with no revenues or assets to underpin value. Eventually defied the odds and the elements by actually finding something of enormous value.  But it required extreme patience and perseverance – it holds the record for longest wait for first revenue, first profit, and first dividend of any ASX listed co

Ashley Owen Oct 10, 2024
CommoditiesAustralian shares International sharesWars & military conflicts
World War II & share markets – Part 2 of 2: Through to the end of the War and aftermath

Key points: Australian and US share markets did well overall, despite heavy loss of life and attacks on our home soil. Volatile ride for shareholders, but patient holders ahead. Generally good for shares overall, limited only by war-time controls on profits and share prices.  

Ashley Owen Oct 10, 2024
CommoditiesInternational sharesWars & military conflictsAustralian shares
World War II & share markets – Part 1 of 2: the Outbreak

War is scary, so it is tempting for investors to panic and race for the exits.  It's important to look beyond the media headlines - knee-jerk, herd-following reactions are usually wrong.  Usually positive for commodities demand, prices, mining shares.

Ashley Owen Oct 10, 2024
Commodities & MiningFinancial MarketsChinaInflationInterest ratesAustralian shares International shares
September 2024 snapshot: Fed’s first rate cut + China stimulus boost markets – is it enough?

Here’s my quick snapshot on global markets for Aussie investors Essential 1-page chart covering share markets, cash rates, bond yields, and FX + my Top 5 factors moving markets

Ashley Owen Oct 01, 2024 4
InflationCommoditiesInterest rates
Gold price pointing to US inflation rising next year - the Fed may not be done yet!

Gold has been the best performing asset class this year, but what is it saying about the outlook for US inflation?   It is pointing to rising US inflation in the year ahead, so the Fed may not be done yet with rate hikes. This would be bearish for US and global share and bond markets.   How does this sit with fears of recession in the US? Why I'm still bullish on US shares and gold - for now.

Ashley Owen Sep 23, 2024
Commodities & MiningCommoditiesExports, tradeAustralian shares China
Iron Ore – biggest driver of ASX market returns, profits & dividends – where are we now?

The iron ore price is the biggest driver of ASX market returns, profits and dividends, and the biggest contributor to the wealth of all Australians, but iron ore prices have sunk back below $100, taking the big miners with it. Where are we now in the cycle?  Why I am bearish short term but reasonably bullish longer term.   How I found a 'thousand-bagger' but am no longer invested.  

Ashley Owen Sep 05, 2024 1
Commodities & MiningCommoditiesAustralian shares International sharesWealth, Inequality
Australia: Most listed stocks per capita, and biggest gamblers in the world - Is there a link?

Australia has more listed companies per head of population than just about any other country on earth – and many times more than the US. Why? Is it because we have many times more viable business opportunities to pursue? Or is it because we have the wiliest stock promoters and spruikers, and we are the biggest gamblers in the world? Actually it is both!

Ashley Owen Aug 22, 2024
Wars & military conflictsExports, tradeChinaAustralian economyCommodities
Geopolitics case study - China: largest export customer + potential military threat - a problem?

Our largest export customer and source of wealth & prosperity - also a potential military threat - is this a problem? My answer is no, but for reasons you may not expect. Here is why I am bullish on Australia’s continued resource-based prosperity as global tensions escalate.  Australians have been masters at turning geopolitical shifts and crises into economic advantage!

Ashley Owen Jul 03, 2024
Exports, tradeAustralian economyAgricultureCommodities & Mining
RBA Deputy Governor opens speech with my chart!

A bit chuffed this week. RBA Dep Gov opened his keynote speech at a major economic forum - with one of my charts. What does he see as Australia's three main sources of wealth and prosperity (and why they matter in future)? How does he see monetary policy being managed in future? What are his observations on Australia - as a 'Stranger in Paradise'?

Ashley Owen Jun 28, 2024 2
Exports, tradeChinaCommoditiesCommodities & Mining
Chinese Steel Production - the Sydney Harbour Bridge Index

China builds another 'Sydney Harbour Bridge' worth of steel every 10 minutes!    That's 26,000 Harbour Bridges per year - with our rocks.       China's steel production has been single biggest driver of Australia's prosperity this century.      But with China's construction market collapsing and economy stagnating, how will that affect us?  ·       

Ashley Owen Mar 25, 2024
Wars & military conflictsStock storiesAustralian shares CommoditiesCommodities & Mining
Political Risk case study: Bougainville - richest gold mine in the world - but you can't touch it

This company is sitting on the richest copper-gold mine in the world, but it has been locked up for 35 years and can't touch it.    Political risk crippled what was once a highly profitable 'blue chip' stock.    All investing involves political risk, but political risks can be the most volatile, hardest to quantify, and most wealth-destroying.   Or perhaps wealth creating - in the right circumstances and at the right price!

Ashley Owen Mar 19, 2024 4
MoneyInflationCommodities
Gold: Curious case of the '31-year itch'?

Gold is hitting new highs lately, so everyone is looking to jump in. It's time to step back for a moment and look at the big picture: Gold goes through regular 31-year cycles - so where are we now in the cycle?  Why gold is a lousy inflation hedge most of the time. Is it cheap or expensive? When it is 'good value'?

Ashley Owen Mar 15, 2024 2
Stock storiesInvestment bubbles/busts, cyclesCommoditiesCommodities & Mining
Case Study 1969-70 Nickel boom-bust

In 2021 and 2022, when the prices of nickel and nickel explorers/miners were soaring, my inbox was flooded with emails asking which nickel stock(s) to jump into.  Since all mining booms follow a familiar pattern, and end the same way for the same reasons, I responded by referring to my story about the mother of all nickel boom-busts – Poseidon, involving the very same nickel mines.   How’s a one-year gain of 46,000% sound?

Ashley Owen Mar 13, 2024
Australian shares Australian economyExports, tradeWealth, InequalityCommodities & Mining
Reflections on Australia - lucky country for investors!

In Australia we tend to take a lot for granted. Australia is the richest country in the world per capita (a record we have held since 1890) - but why? It's not just resource riches and/or British colonisation - there are plenty of resource-rich countries, and plenty of ex-British colonies that are economic basket cases today.  How I personally got lucky - twice - in the great lottery of life.

Ashley Owen Jan 27, 2024 2
CurrencyCommoditiesChina
What drives the Aussie dollar Part 2: Commodities prices

This is the second in a series of articles looking at the four main drivers of the Aussie dollar

Ashley Owen Dec 13, 2023
CommoditiesEconomicsAustralian economyExports, tradeAgricultureCommodities & MiningChina
Australia’s bounty: 400 years of exports. Is it just ‘luck’? Or masterful ability to adapt and pivot

Commodities matter! More than half of the 2,200+ companies listed on the ASX are miners (the vast majority are explorers with little more than a map, a compass, and high hopes, but a small number of miners do actually produce something).

Ashley Owen Nov 15, 2023
Commodities & MiningStock stories
Case Study: 2003-7 Uranium-Paladin bubble & bust. Lessons from the last bubble-bust

With the lithium bubble bursting, I am now receiving emails from readers (and hot stock tip-sheets) about how to jump in on the latest ‘hot’ commodity – uranium, as a possible solution in the transition from fossil fuels.

Ashley Owen Nov 06, 2023
Australian economyCommodities & MiningChinaExports, trade
China builds another ‘Sydney CBD’ every 3 days – with our rocks!

Property construction has been the largest component of China’s incredible economic growth this century, and also the largest contributor to Australia’s export revenues, government tax receipts, corporate profits, and national wealth.

Ashley Owen Sep 15, 2023

“What sets Ashley Owen’s analysis apart from investment banks and the financial press is his deep fact-based understanding of long-term financial data, rather than getting caught up on the daily noise over issues that may generate trades or sell newspapers today, but will be irrelevant and misleading two years from now.” 

Hugh Dive, CFA. Chief Investment Officer, Atlas Funds Management, and frequent expert commentator quoted in the AFR.

‘For many years, Ashley has been my go-to source of information and analysis on what’s going on in financial markets and why.’

“Ashley has an encyclopaedic knowledge of the markets – I call him Mr Google!”

Noel Whittaker, AM – Australia’s best-known personal finance writer, columnist, and media commentator for the past three decades. He has written more than 20 books on personal finance, his columns appear in almost every major Australian newspaper, and he appears regularly on radio and TV as an expert on finance and investing. Noel Whittaker AM

“Over the past 20 years, Ashley has been an invaluable assistance to me, as a reliable source of unbelievably strong and interesting data, and many good investment ideas.”

"The depth and quality of Ashley’s research and analysis of investment markets is the best in the business.”

Dr Don Stammer - Australia’s most respected economic writer, commentator, and speaker for the past 40 years, with a distinguished career including the Reserve Bank of Australia, Chief Economist at Deutsche Bank Australia for 21 years, chair of nine ASX companies, plus numerous non-listed and not-for-profit boards. Read more

 

“Ashley’s unique fact-based analyses and insights into Australian and global markets are always worth reading. He has an incredibly deep and comprehensive store of financial markets data.”

Chris Cuffe, AO – One of Australia’s best known and most experienced investment managers – former CEO of industry giants Colonial First State, then Challenger Financial; founder and Chair of Australian Philanthropic Services, and Third Link Growth Fund; current/former chair, director and/or investment committee member of numerous funds including UniSuper, Argo Investments, Hearts and Minds Investments, Paul Ramsay Foundation, and many others. Read more.

 

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The information contained in this document relates to historical, factual events and returns, and contains general commentary and observations about financial markets, asset classes, and asset allocation. This document, or any part thereof, does not, and is not intended to, constitute investment advice, or financial advice, or financial product advice, in any jurisdiction in which it is published, re-published or read. It does not recommend, encourage, or influence readers to buy, hold, sell, or deal in any financial product or security. Where securities of financial products are mentioned, it is purely for the purposes of illustration, context, and/or education, and not intended to influence anyone to buy, hold, sell, or deal in it. The information is current when written. All reasonable measures are taken to ensure its accuracy at the time of publication, but the author accepts no responsibility or liability for any errors or omissions. This document is only provided to, and intended for, holders of Australian Financial Services Licences. It should not be used or relied upon by any person or entity other than a duly licenced AFSL holder, or authorised representative thereof. The author receives no benefit, financial or otherwise, from any product provider, or product issuer, or any other firm involved directly or indirectly in the provision or services in or to financial markets or industries, whether mentioned in the report or not. Any opinions expressed by the author are his alone, and are intended for the purposes of education.