Trending On Livewire: Weekend Edition - Saturday 5th October

After three consecutive weeks of gains, the S&P/ASX 200 retreated this week, weighed by consumer discretionary and financials – the latter of which continues to see rotation into materials and, more recently, energy names. September, which is historically the weakest month for equities, saw the All Ords Total Return index add an impressive 3.45%.

Similar to Australia, US equities pulled back slightly from all-time highs, although there remains reason for optimism into the end of the year. The S&P 500 has risen on average more than 2% during the fourth quarter in years when it rose 20% or more during the first nine months. Let’s hope those trends continue.

Chris Conway, Managing Editor, Livewire Markets

The one data point investors must not ignore right now

For the first time in four years, the world's most consequential central bank, the US Federal Reserve, has cut interest rates. Unusually for the Fed, the cut was double the regular size of an interest rate move. As a result, different asset classes had different reactions.

So what happens from here on out? How quickly will the Fed and other central banks cut interest rates? How will markets react? And how are Australian investors likely to be affected given the RBA may not cut the cash rate until February next year at the earliest?

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Buy Hold Sell: Copper's time has finally come (and 2 big buys)

For years, experts have predicted a coming surge for copper. BHP, for instance, believes that copper demand will grow by around 70% to over 50 million tonnes (Mt) a year by 2050. For context, the total copper demand in 2023 was 31 million tonnes.

So, in this episode, Money of Mine's Matt Michael was joined by Perennial's Sam Berridge and Argonaut's David Franklyn for their answers to the big copper conundrum.

They analyse three copper stocks listed locally in Australia - including Sandfire Resources (ASX: SFR), Metals Acquisition (ASX: MAC) and Evolution Mining (ASX: EVN)

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3 traits that all good small and micro-cap stocks have

In the world of active stock picking, you've got to have a point of difference. It's not enough to say that you are a small-cap investor, or that you play only in the Australian market. Professional investors sell themselves, their track record, and most importantly, the process by which they hunt for alpha. In the case of Australian small and micro-caps, the challenge is that investors often look at these stocks as riskier, more debt-laden, and more challenging to navigate.

In this episode of The Pitch, Livewire's Hans Lee was joined by Spheria Asset Management's Marcus Burns to introduce the three traits his team looks for in picking small-cap winners. They also discuss two previous winners and identify a company that could become the next big winner for the Fund.

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Top 3 Wires this Week

Here are the weeks top viewed or liked wires by our subscribers:

Equities

Matthew Kidman: We are near the end of the longest structural bull market in history

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Equities

L1 Capital's top stock pick and the great resources rotation

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If the China rally has more to run, Macquarie says these 5 ASX stocks have the most upside

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Our Experts

Some of the best wires from our Contributors this week

Equities

The compounding core: Five stocks growing into deep pools of opportunity

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Equities

Selling your bank shares? Here's three small-cap alternatives to consider

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China's new stimulus package: finally, the turning point?

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Chart of the Week: That ‘70s oil crisis

The historical example that rings most true to the current climate is the oil shock of 1973. Oil prices increased 400% after OAPEC (the all-Arab Nations equivalent of OPEC) announced that it was implementing a total oil embargo against countries who had supported Israel at any point during the 1973 Yom Kippur War. 

As a result of this six-month embargo, stagflation became the norm in the G7 for a decade and the stock market lost 50% of its value between November 1973 and mid-1975. In other words, always keep one eye on commodities - and in particular - oil.

Hans Lee, Senior Editor, Livewire Markets

Weekly Poll

Do you agree with Professor Acemoglu's call.

Is the AI movement over-hyped or is it a generational game changer?

a) AI is over-hyped

b) AI is a generational game-changer.

VOTE NOW

LAST WEEKS POLL RESULTS

We asked "If you had a fresh dollar to spend today, which commodity would you add to your portfolio?"

The poll shows 58.11% favor copper for portfolio additions, reflecting strong demand expectations. Gold follows with 18.92% as a safe-haven choice, while iron ore (16.22%) and silver (6.76%) are less preferred. Copper leads as the top investment choice.

SEE RESULTS BREAKDOWN

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