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What a 24 hours we've had, right?
I want to take a moment to consider volatility in the Australian Share Market. With the news that the Russian invasion of Ukraine was underway yesterday, the ASX (Australian Stock Exchange) had it's worst day in many, many months - losing about $73 billion in value, or approximately 3% of the total exchange.
For me, most of my stocks were down around 4.5%, so I guess I don't own the trends! That aside, it shows the nature of fear and how it can impact investment.
I have four significant share holdings that I wanted to do a quick snapshot of:
Macquarie Bank
- Macquarie is the biggest infrastructure manager in the world, and makes billions of dollars across a number of different divisions. This stock dropped to lows not seen in months, which surprised me a little bit. During the big freeze in the US 12 months ago, the cost of energy led to Macquarie reaching new heights in its reported income. A big win for a dividend following a COVID-Scare year.
Arena REIT
- This is a social infrastructure REIT which owns some medical facilities, but it's portfolio is dominated by childcare facilities. All of these facilities are at full occupancy, with guarenteed rental income being earned. Rental increases are guarenteed and tied to either CPI or 2.5%, whichever is greater. I was a little bit surprised this one fell yesterday, given it's defensive nature.
Healthco + Wellness REIT
- You might see a trend in my own holdings, again, another social infrastructure play. This one has significant medical facilities in its holdings, and a lot of leverage to grow it's portfolio. It's a fairly new REIT though, to be honest, and one of its attractions was its building pipeline. With the cost of building materials and labour skyrocketing, I guess costs are on the path to blowout. This one's fall did not surprise me, and it has not established a growing dividend. I expect this is good buying at such low levels.
Anteris Technologies
- This is a bit of a speculative play for me, it has massive potential. In the past week it was receiving mergers from a US SPAC, and it's medical devices technology is a risk to the big name global biotechs. This one will be gobbled up this year by someone - the question is who will get the take-over across the line. It fell, that makes sense, since it is reliant on capital raisings to progress its technology. With money markets potentially tightening, the path to a big pay cash may not seem so certain!
An interesting day, yesterday, eh?
My expectation is that there will be further volatility until the markets fully understands the response of the West to the Russian incursions. I would expect some good buying opportunities to continue to present themselves.
How are your stocks holding up?