“It looks like we are going to have another bull market over the next couple of years and if so, are you prepared for it?” asks Dale Gilham. In this vein “it’s important you always trade with the long-term trend without putting false expectations in your head, as the market will give you a lot more if you just follow it and let it do its thing.”
Wealth Within analyst Filip Tortevski says what’s hot right now is online employment marketplace portal Seek Limited (ASX:SEK), which Dale Gilham describes as “one of those stocks we talk about as a good long-term stock for a superannuation portfolio that have proven they are robust, can stand the test of time and constantly give you those higher highs and lower lows”.
“If we look back this stock was down 43% in 2010 and we also see a very similar fall of about 40% back in 2015. Most recently it cleared that 40% fall again, falling around 48%. We are not saying buy it today. A hot tip is giving you time to set yourself up for it, rather than scrambling for and thinking you had better buy it before everybody else does. It’s about preparation, and we want to give you time to look at the stock, decide on your rules and get ready to buy it.”
SEK last traded at $23.19.
Our Proceed With Caution stock is Brickworks Ltd (ASX:BKW). “This stock has been humming along since a Covid low of around 43% and if we track back in history, it fell away by an odd 50% in 2003,” says Tortevski. “Someone looking at this stock might think it has run away too hard, so stay away. It’s gotten a bit of a pullback and taken off like a rocket for a second time and I am certain that there are traders thinking they should sell this as it has run too high.”
BKW was priced at $26.72.
What’s Not Hot is Lendlease Group (ASX: LLC). “Something is not right with this stock as you’ve got the real estate index performing one way and Lendlease is the complete opposite. This is one of the biggest stocks in the sector and we want stocks to be moving up. This has just been falling away with lower lows higher highs.”
Dale Gilham says “Lendlease is in lots of areas, not just office buildings. You only have to walk down the street in Melbourne on Mondays and Fridays to realise that everybody wants to work from home. Tuesdays to Thursdays are a lot busier, but so many office buildings are half empty or three quarters empty and it has got to affect profits because you’re not getting the rent. Lendlease is so diversified, so it would be interesting to find out why it has been doing to badly.”
LLC was fetching $5.78.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au
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