Any volatility in the markets can be unnerving at the very best of times, so I asked HotCopper contributor, investment expert, educator, and economic author Andrew Baxter how to read current market conditions.

“We’ve had the talk of tariffs, we’ve had interest rate moves, we’ve had a lot of social programs going on – the dispute between Russia and Ukraine and the very public spat in the White House – it’s been a lot for people to digest,” Baxter said while speaking to HotCopper in the Expert Exchange series.

“Part and parcel of that is why we’ve seen the savage level of sell-off we have over the last week or so, as people come to grips with the news flow and try to make sense of it.

“Maybe we’re on the other side of it.”

“We’ve been in an incredibly strong bull market,” Baxter said.

“Since 2022, we’ve seen the market in the bottom left to top right trend.

“So seeing a pullback of 10% or 15%, I guess it’s like running up a hill: [When] you get to the top of it you’ve got to stop and pause for breath.

“We’ve seen that pull back [before].

“When you look at the underlying earnings, we’ve come out of an earnings season which has been largely solid, about 40% up on expectations… so the underlying machinery that’s driving markets remains intact.

“It’s the newsflow and the chaos around that, I think, which has really seen us on the back foot – so to speak.”

Andrew Baxter called it a “buying opportunity” – as long as the buying horizon isn’t too short. In this interview, he shares thoughts on what some of those buying opportunities could be.

You can hear more from Andrew on the Money And Investing podcast, right here on Hot Copper as well as Apple Podcasts, Spotify and YouTube.

Join the discussion: See what’s trending right now on Australia’s largest stock forum and be part of the conversations that move the markets.

Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

We kick off by discussing the significance of identifying market phases – from long-term bull and bear cycles, to fundamental economic shifts.

Learn the essential skill of reading the tape to navigate volatile markets effectively.

We compare current market conditions to past cycles, focusing on the implications of factors like interest rates and corporate earnings.

We also touch on market peaks, as well as strategies for knowing when to buy or sell.

We explore trends within the market, and in particular short-term opportunities used by skilled traders.

Get practical advice on trading trends versus long-term investment strategies.

Finally, we consider the broader economic landscape, including the potential impact of the upcoming US election. We also look at global factors such as China’s economic growth on market cycles.

For more Info about Money and Investing you can go to the podcast at http://www.moneyandinvesting.com.au/; The Wealth Playbook: Your Ultimate Guide to Financial Security: https://www.wealthplaybook.com.au/, and The Wealth Playbook on Audible: https://www.audible.com.au/pd/The-Wealth-Playbook-Audiobook/B0CXYYWZTB?qid=1711282387

Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

Wealth Within senior analyst Filip Tortevski talks through charts which, he says, suggest Sandfire could be primed for growth and possibly ‘new all-time highs’.

Sandfire has been trading above $9 today.

The ‘Proceed with Caution’ stock is Centuria Industrial REIT (ASX:CIP), which has been trading above $3.10 this afternoon.

“Why it’s a caution to me is its now faulted into this sideways move, you can see the highs getting lower and the lows getting higher,” Mr Tortevski said.

“Now we know from when the market makes these kinds of patterns, that one of three things can happen, it can stay stuck sideways until it breaks directional.

“The question is it more bullish or more bearish?

That’s why it’s a caution for me right now.”

The ‘Not Hot’ stock is Tabcorp Holdings (ASX:TAH) which has been trading around 56 cents this afternoon.

He also mentions last week’s top performers including WiseTech Global (ASX:WTC); Judo Capital Holdings (ASX:JDO); and, Charter Hall Group (ASX:CHC).

Disclaimer: While Wealth Within holds an Australian Financial Services License (AFSL:226347) the information featured in this program is general in nature and therefore should not be relied upon. Before making any investment decisions, you should consult a licensed professional who can advise whether your investment decisions are appropriate for you.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

Most sectors made ground, with Consumer Staples and Energy today’s biggest winners with gains up towards 2 per cent.

Burritos giant Guzman y Gomez has fast-tracked its move to the ASX – looking to list in June. It has 185 stores and wants to expand its footprint. The company’s IPO shares will be priced at $22, and its ticker code is set to be suitably aligned at GYG.

Little Green Pharma (ASX:LGP) is up 4 per cent after reporting revenue of $25.6 million, up $5.7 million – or 29 per cent.

The company sells medicinal cannabis oil and flower products.

It’s finished the year to the end of March, with a smaller loss than in FY23.

Little Green Pharma closed the day at 13 cents.

Contact Energy Limited (CEN) closed up nearly 3.5% after it reaching a long term agreement with New Zealand Aluminium Smelter (NZAS) to supply renewable electricity to its (Teewhy) Tiwai Point operation in Southland.

The deal spans right through to the end of 2044.

CEN closed the day at $8.48

And digital marketing play, I Synergy Group (ASX:IS3) added 40 per cent off a low base after holding its AGM.  

I Synergy closed the week at 1.4 cents.

Namoi Cotton (ASX:NAM) fell nearly 1.5% after directing shareholders to accept an off-market takeover offer from Olam Agri Australia.

The Independent Directors recommend shareholders in the Queensland and New South Wales cotton producer, allow Olam to acquire all Namoi shares at  $0.70.

There have been other bidders: Earlier this month the ACCC raised competition concerns about a rival bid by Louis Dreyfus Company.

NAM closed the day close to that value – at 69 cents.

Battery metals play Talga Group (ASX:TLG) dropped more than 6 per cent, despite releasing a study into expansion options for its graphite project in Sweden.

The interim scoping study explores increasing Talga’s underground mining of 19,500 tonnes per annum of low-emission graphite anode products.  The company’s looking to tap into Europe’s lithium-ion battery market.

TLG closed the week at 61 cents.

And Alchemy Resources (ASX:ALY) fell 12.5% following its exploration activities at its Bryah Basin Project in Western Australia.

Although the company cited ‘exceptional high’ iron ore grades from the Valley Bore target, the market didn’t buy today.

In 2008 and 2009, the company discovered high-grade hematite and banded iron outcrops over a 2 km strike, with grades up to 66.3% iron. Recent rock-chip sampling returned similar results.

Alchemy closed the day at point-7 of a cent.

Retail sales figures in the US came in better than expected, and with fears the Israel, Iran conflict could escalate, gold rose and so did bond yields.

The Nasdaq fell 1.8 per cent, the S&P500 dropped a per cent and the Dow Jones well over half a per cent (0.65%). Customer Relationship Manager platform company, Salesforce, lost more than 7%, with Apple and Visa also losing ground.

There’ll be important data out of China today – it’ll release its gross domestic product figures for the quarter to March.

Perhaps providing insights for this, Rio Tinto (ASX:RIO) will this morning provide an update to its production for the same period.

To other news, a public hearing for the supermarket pricing Senate Committee inquiry will continue in Canberra – it involves Woolworths Group (ASX:WOW), Bunnings and Coles Group (ASX:COL); there’s also a public hearing in Queensland into regional bank closures, while The State Entertainment Group (ASX:SGR) will continue to front the NSW Inquiry into its Sydney casino operations.

In other stocks to watch, Telix Pharmaceuticals (ASX:TLX) has been granted Fast Track Designation by the US Food and Drug Administration for its brain tumour imaging product TLX 101-CDx; A subsidiary of Southern Cross Electrical Engineering (ASX:SXE) has been awarded work at data centres in New South Wales and the ACT totalling about $50 million; and Wia Gold (ASX:WIA) has upped its gold resource in Namibia to 2.12 million ounces.

The Australian dollar has fallen to five-month low of US64.4c, gold is around US$2385 (A$3700) an ounce, iron ore’s been trading just above US$106 a tonne, brent crude is above US$90.50 a barrel, and natural gas has taken a fall of nearly 5 per cent to US$1.68 per million British thermal units.

It is widely considered that the Amsterdam Stock Exchange, with roots back to the ‘Dutch Golden Age’ of the 1600s, is the oldest modern stock trading venue.

But more importantly for investors, the European stock market provides investment opportunities that can be difficult to find elsewhere. While US indices are becoming increasingly tech-heavy, Europe offers a more diversified investment landscape.

The Euro STOXX 600 index offers a well-diversified group of companies covering all 11 Global Industry Classification Standard (GICS) sectors. Healthcare makes up the biggest proportion of the index, covering 15.4 per cent, with Industrials, Banks, Tech and Food/Beverage/Tobacco currently rounding out the top 5.

This diversification is worth noting, especially in light of the increasing tech sector concentration risk in the major US indices and the dominance of the ‘Magnificent Seven‘ – despite growing concerns that Tesla may soon fall out of that group.

The Euro STOXX 600 index has enjoyed the same recent positive performance as most indices across the globe, climbing around 40 per cent in the 5 years to December. While indices like the US S&P500 and Nasdaq have enjoyed higher returns over the same period, that is largely due to their aforementioned tech concentration, which comes with specific risks.

You can gain exposure to the Euro STOXX 600 index through Exchange-Traded Fund (ETF) products such as the iShares STOXX Europe 600 UCITS ETF, the Lyxor Core STOXX 600 ETF, and the BNP Paribas Easy Stoxx Europe 600 UCITS ETF.

Since January 2019, the 20 best performing stocks of the Euro STOXX 600 have all returned more than 180 per cent, with healthcare giant Novo Nordisk (Denmark) the best performing, returning 433 per cent. This also means Novo Nordisk has become Europe’s most valuable company in terms of market capitalisation. The second most valuable company is the 20th best performing over the 5 years to January, LVMH (France). ASML (the Netherlands), which has the index’s second-best 5-year performance, squeezed in as the fourth most valuable company.

The index’s top 20 performers come from 10 different countries – 3 each from Denmark, France, Switzerland and the UK, two each from Italy and the Netherlands, and one each from Germany, Sweden, Ireland and Belgium. See the table below*.

* 5-year returns constitute price on January 1, 2019 – price on January 9, 2024.

Disclaimer: Saxo Capital Markets (Australia) Limited (Saxo) provides this information as general information only, without taking into account the circumstances, needs or objectives of any of its clients. Clients should consider the appropriateness of any recommendation or forecast or other information for their individual situation.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

The sectors finished fairly split with the best performers being Financials, which gained 0.8 per cent and Utilities and Energy which both added about half a per cent.

IT lost the most ground – 1.44 per cent – following a rough night’s trade on the Nasdaq.

Constellation Resources (ASX:CR1) has gained more than 15 per cent after being named preferred applicant for six helium exploration permits in WA.

The company claims the areas show potential for helium with the six permits overlying granite geology with qualities that could suggest a large deposit of the critical gas.

CR1 closed the day at 9.8 cents.

Real Estate Investment Trust Growthpoint Properties Australia (ASX:GOZ) added 2 per cent on appointing Ross Lees as CEO and managing director, taking over from Timothy Collyer.

Mr Lees has been serving as the Head of Funds Management at Centuria Capital Group (ASX:CNI), where he helped elevate its funds management platform from $4 billion to $21 billion.

Mr Lees is set to step into the role in Q3.

GOZ closed at $2.27.

And Viridis Mining and Minerals (ASX:VMM) closed up more than 5 per cent as it acquired almost 10km2 of licenses to expand its rare earths play in Brazil.

This expansion consists of three new licences and one application for the right to mine in a new area.

VMM closed trade at $1.19.

Online retailer Cettire (ASX: CTT) saw a second day of declines as the Australian Financial Review posted an investigation alleging Cettire may not pay customs taxes.

But Cettire responded to the Fin, alleging their journos were confused by a label on a box, and incorrectly stated the company didn’t pay its fair share to Canberra.

This was enough to lure some investors back in and Cettire finished the day down 14 per cent – not by as much as earlier in the session.

CTT closed the day at $3.99 after stooping as low as $3.41.

Breast cancer screening and diagnostics firm BCAL Diagnostics (ASX:BDX) lost 3.3 per cent on the appointment of Shane Ryan as its new Australia-based CEO.

Mr Ryan has been the COO since the beginning of the financial year and is charged with driving the market launch of the company’s new BREASTEST later this year.

BDX closed the day at 8.7 cents.

And tech conglomerate Dicker Data (ASX:DDR) slipped 10 per cent after its chairman and CEO, David Dicker, sold 18.3 million shares at $10.90 a share.

This represents 10.2 per cent of the company’s issued capital.

The sale was reportedly due to a recent divorce settlement and subsequent restructuring of David Dicker’s portfolio.

DDR closed the day at $10.84.

The energy sector continued to widen its losses to close down nearly 1.2 per cent.

Galan Lithium (ASX:GLN) traded up nearly 8 per cent after securing an offtake agreement with Glencore for up to 100 per cent of the lithium it produces from its Hombre Muerto West Lithium Project in Argentina.

The deal also includes a finance prepayment facility of up to $100 million. Galan is looking to begin production in the first half of 2025.

GLN closed at 75 cents. 

Australian grains producer Graincorp (ASX:GNC) gained 1.75 per cent after announcing a $50 million buyback despite its annual profit falling for the year to the end of September.

Revenue was up 4.6 per cent to nearly $8.23 billion, but EBITDA was down 19 per cent to $565 million. Net Profit After Tax was 34 per cent lower at about $250 million, as the company faced challenges including flooding in New South Wales and Victoria early this year.

Graincorp announced a fully franked final dividend of 30 cents bringing the annual total dividend in line with FY22 – to 54 cents a share.

GNC closed at $7.55.  

And Vulcan Energy Resources (ASX:VUL) closed up 5 per cent after its Bridging Engineering Study showed the CapEx for its Zero Carbon Lithium Project in Germany could be reduced by close to $170 million. It also lowered the project’s operating costs and risk profile. 

Vulcan claims it can also minimise exposure to commodity price volatilities with production at the lowest cost quartile and binding offtake agreements. It’s on track to produce lithium hydroxide for 500,000 battery electric vehicles a year.

Vulcan closed at $2.71.

AMP Limited (ASX:AMP) lost more than 15 percent today, having announced it’ll launch a new digital bank through an alliance with the software-as-a-service subsidiary of the UK’s Starling Bank.

The Engine by Starling platform will cost $60 million to build, and, when it goes live in 2025, it’ll target sole trader and small business customers with up to 20 staff.

AMP admitted the new bank won’t be profitable until 2027. It also provided weaker guidance for the year ahead.

AMP closed at 85.5 cents. 

New-Zealand renewable energy play Infratil Limited (ASX:IFT) shed 2.5 per cent despite revealing its half-yearly net profit more than doubled – thanks to increasing its ownership of mobile telco One NZ to 100 per cent from less than 50 per cent in June.

Infratil reported a net profit of $1.12 billion in the six months to September.

IFT closed at $9.54.

And Future Battery Minerals (ASX:FBM) took a dive of more than 16.5 per cent, on its latest reverse circulation and diamond drilling results from its Kangaroo Hills Lithium Project in Western Australia.

Assays revealed four metres at 1.37 per cent Lithium Oxide from 25m deep, and, four metres at 1.01 per cent Lithium Oxide from 146 metres. 

While the company claimed the results showed the project’s potential, dozens of HotCopper users expressed dismay with the results. 

Full results of the expanded test work are expected to be received early next year. 

FBM closed the day at 7.5 cents.