View our Blog
Felix Gold
Far East Gold
Far East Gold
Wellnex Limited
Propell Holdings Ltd
Prescient Theraputics
Site
TRIBE
MDF Global Limited Q&A
MDF Global Limited Q&A

Note from the MD: Investors advised to prepare for 1970s volatility levels

Australia’s labour shortage is becoming a real crisis. Businesses are struggling to fill 300,000 jobs, says the National Skills Commission, while the ABS puts combined private and public sector vacancies at 480,000 – 111% higher than in February 2020, prior to the pandemic.
Australia’s labour shortage is becoming a real crisis. Businesses are struggling to fill 300,000 jobs, says the National Skills Commission, while the ABS puts combined private and public sector vacancies at 480,000 – 111% higher than in February 2020, prior to the pandemic. The current wave of flu and COVID is only adding to the pain, as any frequent flyer can attest. Our airlines are turning in some of their worst on-time performances ever, with more than half of all domestic flights last week delayed or cancelled, largely as a result of staff shortages. Investment giant BlackRock this week suggested that given the demise of the so-called Great Moderation (a period of steady growth and inflation), investors should prepare for persistent inflation, short and sharp swings in economic activity, and a possible return to levels of volatility last seen in the 1970s. With attracting and retaining employees such a huge challenge for businesses, employers are calling for an urgent ramp-up of skilled migration as a priority fix to be resolved at Labor’s national jobs summit scheduled for September. PM Anthony Albanese acknowledged the labour crisis this week, saying Australia needs to do more to help foreign workers seeking permanent residency. The issue may become a key test for the new government, at a time when the PM’s approval is wavering as his post-election honeymoon fades. The XJO followed world markets and opened slightly lower this morning, trading below 6600 in the early part of the session. The market has been forming a symmetrical triangle over the past four weeks, suggesting that the market could break out in either direction in the coming days. The XJO’s implied volatility is sitting around 19.5% and its IV rank is around 50. The 50-day MA (currently at 6910) is sloping down and closing in on the gap between itself and the price level of the XJO index. If we see a break to the upside, we expect to see the first level of resistance around the 6750 to 6770 levels. The next major level of resistance will be around the 50-day MA. On the downside, we see support around 6400 to 6450, with the next level of support around 6340. The negative returns of our equities markets in 2021-22 may appear less than impressive on the face of it, but everything is relative. The ASX 200 last year delivered its best outperformance of the global market in almost two decades, according to JP Morgan – and is well positioned to do so again this year. We have an upcoming investor briefing with a security and surveillance tech company with the only surveillance solution that can sense, think and act – without needing people, data cables or power cords. Spectur Limited (ASX: SP3) provides a service for institutions such as Optus, Surf Life Saving and the Department of Defence and has grown to dominate its $10 million-plus home market in WA. Tomorrow, Thursday 14th July at 12pm (AEST), we will be joined by managing director Dr Gerard Dyson who will provide an update on how the company is rolling out plans to replicate its WA success across a near-term $300 million-plus market spanning Australia, New Zealand and select US states. This will be a fascinating conversation for potential investors. Click here to attend.
Any advice contained in this communication is general only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) including the Privacy Statement at www.reachmarkets.com.au and the relevant Product Disclosure Statement, Prospectus or offer documents to understand the features, risks and returns associated with the investment. Reach* may have a material interest in and may earn fees or brokerage from any securities referred to in business or in which we seek to do business with. Please refer to the relevant offer documents for full details. Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only act on the information we provide if you are confident that you fully understand what you are doing. Past returns do not always indicate future returns, and it is also possible to make significant losses. There is always a risk of loss when trading and investing. *Reach refers to Reach Markets Pty Ltd (ABN 36 145 312 232) (CAR No: 431191), Reach Corporate Pty Ltd (ABN 76 638 960 540) (CAR No:1281636), Reach Trading Pty Ltd (ABN 16 615 714 442) (CAR No.1265855), R Corporate Pty Ltd (ABN 50643404871) (CAR No. 1290551) of Reach Financial Group Pty Ltd (ABN 17 090 611 680) who hold an Australian Financial Services Licence (AFSL) 333297.

This Week’s News

News

31st May 2024

Top geo backed by leading resources funds believes he has discovered a potential new gold-copper district

News

8th May 2024

BHP Xplor winner coming to the ASX

News

4th May 2024

AI Industrial Revolution: Aussie company unlocking AI for multinationals

General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG)

including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.

Close
Search

Hit enter to search or ESC to close

cookie By using this website, you agree to our cookie policy. Close