It has been almost a month since we last covered the BetaShares Australian Equities Strong Bear Hedge Fund’s [ASX:BBOZ] share price.
At the time, I pointed out how we could see the BBOZ share price move into a full upwards trend.
The weighted moving average lines now support that speculation.
At the time of writing, BBOZ shares are 19 cents higher or 2.21%, trading at $8.80 per unit.
Just a bump on the road to recovery?
I feel like we’ve been asking what the beginning of 2021 will look like since the start of this year.
Not that its uncommon to look ahead in the world of investing, it’s what investors do!
Though the answer to ‘what will next year look like’, might be more important than previous years.
With Australia’s domestic and international borders locked up tight, making an educated guess when Australia will return to prosperity is difficult.
Things could be looking up — not for the BBOZ though.
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Today an agreement was reached between Prime Ministers Scott Morrison and Jacinda Ardern to allow travel between some Australian states and New Zealand.
Flights are expected to commence within weeks.
Residents in NSW and NT will be able to travel quarantine-free to New Zealand from 16 October.
NZ residents will also be able to travel to those two jurisdictions free of the same restrictions.
A nice step in the right direction for Australia’s struggling tourism industry.
Will BBOZ continue to trend upwards?
We’ve seen some interesting things on the stock market this past year.
Namely, key indices no longer seem to be indicators of the broader economy.
At least not in the ways they used to be.
Meaning that even as the economy begins to repair and reopen, the ASX is not destined to follow.
Not in the way we would usually expect.
Another example of the disparities between the stock market and the broader economy is the NASDAQ.
The NASDAQ has pushed 51.5% higher in just six months.
How do these returns correlate to massive unemployment or underemployment?
It’s possible they don’t.
In my books, we’re still a way off from returning to pre-COVID levels.
We still have one of our largest commerce sectors completely locked up and a financial sector currently treading water, with the country being flooded with and endless stream of cash.
A phenomenon that could potentially point to another market crash.
Market expert Vern Gowdie shares a similar sentiment. Find out where the Australian economy could be heading in the ‘post-COVID’ world in Vern’s latest report and what you can do to protect your wealth during this current phase of the crisis. Download your free copies of these great resources here and here.
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