It is Tuesday the 22^nd of July 2025. The local share market tumbled yesterday, having its worst session since April, with the switch from the big banks to the blue-chip miners gaining steam. Yesterday was typical of what’s been happening lately. Commonwealth Bank, NAB and ANZ all fell around 2.5 per cent while Westpac was off 3.6 cent. In contrast BHP rose 0.7 per cent while Rio Tinto and Fortescue were both up around 1.5 per cent. Over the past month, the big three miners are up at least 13 per cent, while three of the big four banks have lost ground.

Listen to today's episode 🎧 

News in brief

The federal parliamentary battle has begun, with Prime Minister Anthony Albanese calling the Opposition the “no-alition”, and Liberal leader Sussan Ley saying she will fight the government every step of the way on crucial issues, including tax reform.

For the first time in eight years, there’s been an increase, rather than a decrease, in funds in AMP’s superannuation and investments division. The one-time blue-chip reported a sharp improvement in cash flows across its core businesses.

Costco is emerging as a serious player in the local grocery sector with the US retailer known hitting annual sales of around $5bn a year in Australia.

JP Morgan Chase has become far and away the biggest bank in the US and is now worth more than the value of the next three banks combined. JP Morgan has a market cap of nearly $US800 billion, about four times the size of the Commonwealth Bank.

The London Stock Exchange is weighing up whether to introduce 24-hour trading in response to growing demand from small investors.

Fear-o-meter

Getting the timing right of a switch from one sector to another on the share market takes both good management and luck. Notwithstanding that, all the signs point to the acceleration out of banks on the local ASX, towards the big miners and healthcare companies.

The ASX200 has a large healthcare component with global leaders like CSL and Cochlear. Investors wanting to put money ABB (anywhere but banks) are taking the opportunity to buy miners. But now they are looking at healthcare stocks as well.

BHP, Fortescue Metals and Rio Tinto are the biggest winners, but buying into ABB is broadening out. It isn’t good for financials, but it is good for other sectors.

Who's talking today?

On investing in mid cap stocks - what he looks for, and three companies he currently likes:

 

"Regis Healthcare own and operate aged care facilities around Australia, around seven and a half thousand beds capacity. And so we like Regis Healthcare because it's got a structural tailwind. Obviously the baby boomers are aging. They're moving into that demographic that requires aged care.

The Department of Health forecasts we need 10,000 beds per annum of new capacity being built to house all of those that require care. But at the moment, in the last four years, we've only built one and a half thousand beds per annum. So there's a massive supply and demand imbalance. And that's seen occupancy almost at breaking point now. The reason for that gap, in our view, is the returns aren't high enough to justify building new facilities. There's much better uses of capital...

The government needs to make it better for operators. And we think that benefits both Regis's existing portfolio of assets, expanding their returns and also allows them to build new assets at returns that are attractive to us as investors as well."

 

*This is general information only. You should seek advice tailored to your own circumstances and do your own research before making investment decisions.

Greed-o-meter

Sales at Costco have hit $5 billion a year in Australia, as the US bulk-goods retailer emerges as a force in the local supermarket industry. It's nabbed about 4pc of the market, compared to 9pc for Aldi - impressive considering Costco operates just 15 local stores, compared to Aldi's 599.

Source: ACCC, Fear & Greed

Forwarded from a friend? Sign up to our daily newsletter