Euro Exodus Accelerates

Markets haven’t been kind lately.

It is a case of holding on for dear life while various sectors collapse in a panic.

We saw the Saaspocalypse earlier this year, with US software stocks hammered by AI disruption fears.

In Australia, we have seen healthcare stocks implode, and then consumer and rate-sensitive sectors such as financials were taken behind the woodshed.

Metals, mining, and critical minerals have collapsed over the past month, with uranium stocks joining the decline.

It feels like there is nowhere to hide.

The selling is looking like panicked capitulation in lithium and uranium.

The uranium price hasn’t budged over the past month. Spot and contract pricing remain elevated at multi-year highs.

And yet across the board, we have seen a collapse in uranium stocks. Some are down 30-50% in a month.

I should know because I increased position sizes in uranium and lithium at exactly the wrong moment.

We would all like to be Harry Hindsight, the best trader in the world, but the fact is, when you trade markets, there are no do-overs.

You have to deal with reality.

I will be sticking to my guns on lithium and uranium with a view to adding to positions if this capitulation gets silly and I get another buy signal.

But markets are not for the faint-hearted right now. It is brutal out there.

Bell Potter found that only 23 of the 200 stocks in the S&P/ASX Small Ordinaries index [ASX:XSO] were higher for the year as of 1 October.

That’s a whole lot of disgruntled investors.

None of us wants to hear it right now, but it is usually during periods like this that the best opportunities usually show themselves.

The trick is making sure you aren’t so punch drunk by the time the opportunities show themselves that you are ready and willing to take them on.

In today’s Closing Bell, Charlie and I have a look at a list of stocks suggested by viewers, which is worth checking out.

Before we have a look at them, we consider the hints that we are seeing big capital flows out of Europe and back to the US.

A surging US dollar and rising yields are big news for other assets. So we need to consider what happens if that continues.

But I deliberately kept my yabbering on about bonds to a minimum so we could focus on the great selection of stocks suggested by viewers.

Closing Bell