ASX Blue Chips Which One is a Trader’s Choice?

In this episode, Janine shares her view on which ASX blue chips are back in focus, and the trader’s choice when considering earnings growth, valuation, income and the strength of the price trend. Janine compares some of the ASX's 20 biggest names to uncover which stocks offer the strongest mix of quality, growth, dividends and value, before revealing which one stands out when the fundamentals and technical picture come together.

• 0:01Speaker 00

  This podcast is brought to you by Wealth Within, a global leader in stock market education. For more information on our courses, head over to wealthwithin.com.au. Please note that the information in this podcast should not be considered personal financial advice. Enjoy.

• 0:20Speaker 01

  Hello and welcome to Talking Wealth. I'm Janine Cox, Senior Analyst at Wealth Within. Today, my podcast is about blue chips. Which one is a trader's choice? This is really interesting because blue chip stocks have been confused with growth stocks. People are really not relating to blue chip stocks anymore. Or are they? Maybe some people still consider that they want to hold the top 20 shares in their portfolio and they're looking at them as blue chip shares, when in actual fact, a lot of these stocks are now performing like growth stocks. And that's really the aim

• 0:58Speaker 01

  of this discussion is to actually share with you which of the ASX 20s biggest names are really looking great. Which ones have the strongest mix from the point of view of being quality stocks? They have that growth focused dividends and value everything that you would want from a share. And I'm going to reveal the one that stands out from a technical and fundamental perspective. First of all, we need to look at the fundamentals. Now, we don't always do that. From a technical analyst perspective, often we'll start at the chart and look at the trends and examine the overall picture of a share. But today, I wanted to reflect on how well some of these companies have done and from a fundamental

• 1:43Speaker 01

  perspective, what looks good. So we look at, and you're probably going to be wondering which stocks I've picked. And we're looking at some of the big names out there, really great stocks that have performed so well. Doesn't mean that they always will. And that's why you've got to pay attention whenever you hear anything that we talk about when we're discussing the big stocks, because they lead the market ultimately. When there's a peak, you're going to see these stocks turn. The money starts to flow out of them. They can't hide. They're so huge that it will be obvious to you if you have some technical knowledge. And often the fundamentals will be delayed. You won't see it through the

• 2:26Speaker 01

  fundamentals until it's too late. So having the best of both worlds is being able to analyse both. But how much you put, how much emphasis you put on the fundamentals and how much emphasis you put on the technicals is totally up to you. Prove it to yourself, which is more important. When we go through the next few years, you are going to witness this. And I saw this happen in the GFC. I witnessed fundamentalists saying, these are still great companies with great earnings potential, but the share prices were falling and they continued to plummet, even though that was being said. Now, what we've done here is we've looked at some of the fundamentals of these companies to create a scorecard,

• 3:11Speaker 01

  a trailing PE and dividend yield, the latest 2026 franking levels and average annual earnings growth over the past five years. Now, the past five years is really important because it will stop the skew that can happen from an exceptional, where there's one really good year, and that distorts the picture. So what we want to look at is how these stocks have performed over the last five years. Now, QBE is one on this list. And some of you may think that that's for a really good reason, which is great, because it is a nice

• 3:50Speaker 01

  big stock, but it's had its fair share of being discounted and negativity. So what we're looking at with QBE is a PE ratio. Now, don't hold me to these figures. This is research that's come from online. You need to verify this data yourself, but it's a really, really good guide. So a current PE of 11.2, a cash dividend yield of 4.6%. Franking's 30%. So some of you might, you know, be looking for stocks that are 100% franked. The grossed up yield though is 5.2. That's pretty good. And when you've got

• 4:32Speaker 01

  the opportunity to make some capital gains on top of it, that could be quite attractive. The five-year earnings growth per annum for QBE stands at plus 39%. That's really great performance to see from QBE. Strongest combination of historical earnings and growth and low valuation. So this one, this one's come in at the top at the moment from a fundamental perspective, it seems. Aristocrat Leisure has a current PE of 23.7 and times and cash dividend yield of 1.7%. Franking's zero though. So this could mark ALL off the list of somebody

• 5:13Speaker 01

  who was looking for a stock that had franking. So bear that in mind. Not every stock that's in the top 20, just because it's a nice big liquid stock, may not suit all of the criteria that you've set for your portfolio. Some traders will say they don't care about the fundamentals. They're just looking for growth opportunities, which is fine. But at the moment, while the market is still not showing yet that it is, that it has turned, we haven't had confirmation of that at this stage, there's still potential here and these fundamentals could help support it. So we've got a grossed up yield of only 1.7%. About a five-year earnings growth per annum of 11.6. That's nothing to be scoffed at. It looks good.

• 5:56Speaker 01

  Genuine growth profile and income is obviously secondary if you choose this one. Now Telstra has actually got a current PE of 24 times, cash dividend yield of 4.4, franking around 90%, which is great. So grossed up, it's 6.1%. That's a nice return, you know, if you can get that franking. Now, it's got income plus a modest long-term earnings growth. Let's describe it that way at this stage. Wesfarmers, 28.7 times. That's the current PE. Cash dividend yield is 3%, fully franked, which is nice. Grossed up is around 4.3%.

• 6:38Speaker 01

  This stock has a quality earnings growth profile, but there's a very high valuation for what it is at the moment. And we talked about this stock on the show. If you're wanting to have a look at what we said, you can watch the video and you'll see as much, you know, this is on our YouTube members page. If you're not a member, you need to get on this because this is going to allow you to keep pace with what's going on with some really interesting areas in the market, particularly the top 20 shares. CBA, 23.6 times is the current PE. Still quite high for CBA. It's behaving more like a growth stock. It's PE ratio makes

• 7:22Speaker 01

  it look like that when historically, if it went into double digits, it would be in the teens, never, you know, not rarely at this level. I can't remember what it was just before the GFC hit. Cash dividend yield, 3.3%. This is low for a bank. You know, the market likes to see these dividends up around four or 5%. So price comes back, dividend yield goes up, everybody's happy. That's the way that the market works. Now, franking 100%, grossed up yield, 4.7%. This one's got dependable earnings and income, but historically is expensive versus compared to its peers. And it is the best bank in our market. So

• 8:07Speaker 01

  it has taken the mantle and that's why it's been rewarded like that. But it has been pumped up in our view as well. I didn't say that Wesfarmers has quality earnings, but people pay high valuation. That's another one that's high valuation. Coles, 28.3. That is really high for Coles, but it's just showing how that defensive money is going in there for that income. 3.4%. It's less volatile than other stocks typically. 100% franked, which means you get around 5%. Defensive income, but only modest five-year earnings

• 8:47Speaker 01

  growth is the way that it's classed. Macquarie, 19.3 times is the PE, which I think is actually not too bad for Macquarie, when I can remember Macquarie going into really high double digits. 2.9%, that's the dividend. 35% franked, so it gives you a 3.3%. Historically, this has been about capital growth, Macquarie, and it's proven that over the past decade. Big financial year, 26 recovery, but five-year growth has been roughly flat. BHP, 22.2 times, so that's the PE, 4.3% on the dividend yield, which is good. 100% frank gives you

• 9:31Speaker 01

  up around 6.1. So that's a really nice dividend to have. And Rio, Rio's PE is actually a lot lower than BHP. It's around 13.4. Dividend yields around the same at 4%, 100% franked, 5.7. Now, of course, these numbers will change as the share price changes. So just bear that in mind. And 5.7% overall, low PE and attractive income, but five-year earnings have declined. That's Rio, right? So BHP's got the tick, as I said, it's got excellent income, but commodity cycle affects that and drags the five-year earnings down. Goodman

• 10:11Speaker 01

  is another interesting one. It's a darling stock of the real estate stocks, 19.7 PE, but only 1.1 on the yield. You know, that is disappointing. We want to see that higher for the demand. You know, people want to put these stocks into their portfolios. Often they like the REITs because they get dividends, reliable dividends. But it's zero franking. Current growth story is strong, but the statutory five-year earnings are distorted by property valuation. So that's something to bear in mind with Goodman. So we've looked

• 10:49Speaker 01

  at a number of these big stocks. These are the really interesting ones. Now, this grossed up yield is also assuming that you as the investor can get the franking credits and a 30% tax, company tax rate. So those are the assumptions. And of course, the actual benefit depends on your individual circumstances.

• 11:12Speaker 01

  Now, QBE was the surprise standout. In a period of higher interest rates, rising interest rates, QBE's share price is moving up, which is to be expected. This is actually the one on the top of my list at the moment, but you may actually see other stocks that you're currently holding in your portfolio appear as we continue through this discussion, further to what was already talked about just a moment ago. So, QBE is trading at only 11.2%, as mentioned. It has a dividend yield of about 4.6%. And this stock is actually becoming substantially more profitable.

• 11:54Speaker 01

  So, it's possible that 39%, you know, that sort of figure, maybe it will continue to maintain that over the next couple of years, but I wouldn't assume that that is going to be the case for the next five years. Now, we saw what the dividend has done. QBE, from a charting point of view, looks really nice. There's a really nice trend there. And as I said, you can watch how Phil and I described QBE on the show.

• 12:28Speaker 01

  The stock with perhaps the most interesting combination of valuation and income, you know, it's just, it ticks a lot of the boxes. Ideally, if you like the fundamentals and the technicals to line up, these are the things that you want to be thinking about and looking at. But you've also got to be watching the data and whether it's changing, because at some point, when the yields drop down too low, PEs start to go up into a territory that's not typical for the stock, the market will pull it back. That's often a reality, especially with these bigger stocks. Now, Aristocrat looks much more like a blue-chip stock, even though it's a growth stock.

• 13:09Speaker 01

  Five-year earnings growth's approximately 11.6%. And the dividend yield is only around 1.7%. So, that's what you'd expect to see on a growth stock, anywhere between 1% and around 3% for the dividend yield. And then, of course, the earnings forecasts keep coming in with these type of stocks. Watch these stocks, because when markets turn, they can have a pullback in the market, a significant correction, can have an equally significant impact on stocks like this. So, don't assume that they, you know, have a strong track record and that that's going to continue to go forward.

• 13:53Speaker 01

  At this point in time, this is a trader's market. You have to understand that. Now, Aristocrat demonstrates another important point, that you can have these established blue-chip stocks, but their main attraction from an investor's point of view is the growth, not the income. This is a classic case with Aristocrat Leisure, that's what the market is expecting and that's what they better deliver. So, this is where you want to track what's being discussed online about them, any updates to the market you've got to be on top of. Even though with big stocks, we generally say that it's not as important, when it comes

• 14:37Speaker 01

  to a stock that's not paying a dividend, the whole focus is on its forward growth potential, more so than just whether it's going to pay a dividend. You'll see sometimes stocks that maybe don't have the highest growth trajectory from a fundamental perspective, but they're paying really nice dividends and the share price holds up. Telstra is a good example. This one has actually been in the doldrums for a long time, although in the last couple of years, it's actually performed better from a growth perspective. But its dividend yield's 4.4%. This is a really good blue-chip stock that, you know, has turned from being a dog stock into a reasonable opportunity.

• 15:23Speaker 01

  It produces that grossed-up yield, remember, of around 6% for those investors who can take advantage of that. And earnings have grown around 6% per annum over five years. That's fantastic to see. That sort of trajectory coming out of Telstra, and hopefully it maintains it going forward. This is probably part of the reason why it's maintained this popularity and it's allowed the share price to move up where it is at the moment. But we talk about an important level on the show for Telstra. It's at that level at the moment, and we also share what we think it's going to do next from a technical point of view.

• 16:09Speaker 01

  But I would have Telstra on my list to watch. That's a really good one. If you've currently got it, there's not a reason to sell it at the moment, given the way you need to view a stock like Telstra. It's not, it can be good for short term, but because it's paying a really nice dividend, because of the trend that it's currently unfolding in, it's not showing signs of the more medium-term to long-term turnaround to the downside yet. Wesfarmers, this is a beautiful blue-chip share. It can provide good growth at times, but also spends a lot of time going sideways every so often.

• 16:50Speaker 01

  So, like banks, I would put it in the similar sort of category from a more defensive point of view, but then when the crunch comes, it's not going to be immune like every stock. Banks fell in the order of 60% during the correction. Wesfarmers had a significant fall in the GFC, so that's something just to bear in mind. Wesfarmers, as I said, delivered around 5.8% annual earnings growth over five years. This is important, fully frank dividend. So, any opportunity for some downside in the share price will prop that yield up a bit higher and make it look more attractive. So, this is fluid right now, because when share prices are falling, obviously this

• 17:35Speaker 01

  data can change quite quickly. And the PE ratio, that's an interesting thing, obviously that's going to move as well. We need to keep an eye on that. It's not a cheap stock, and not right now. There will be times when it will be, and this is where using a trend line can be really great in identifying where some of the opportunities are. But it's not just trend lines that you need to use. You can use just trend lines, but if you really want to get your skills up in preparation for this next move on our market over the next couple of years, this peak that will be forming, and then the crunch that will happen after that, bear in mind that the

• 18:17Speaker 01

  miners ran on way beyond the peak of the stock market. So, miners typically will do that when the market starts falling, that initial fall, often miners are still rising. So, that's what we would be looking for with BHP and Rio and some other miners that are in the mix. So, but this is really illustrating a point that this is, Wesfarmers is one of those companies, I don't know if you've ever read that book, Good to Great, but that was a fantastic book. Wesfarmers was one of those companies. It just evolved itself and adjusted for conditions.

• 18:58Speaker 01

  And the investors came back into Wesfarmers in droves, pushing the share price up after the GFC. And there've been plenty of great opportunities with Wesfarmers. Right now, though, it looks expensive from a fundamental point of view, and from a technical point of view, it looks like there's more downside risk at this point. So, this is where it's a bit of caution required. Could be good for profit-taking if you've got some good rules on there. The next one we talked about was CBA. It's got a similar problem. It's moving to the downside. Big brokers have called $100. The technicals do indicate that it could fall to around 120.

• 19:44Speaker 01

  It could also find support around 140. This is what I'm looking at at the moment. We'll see if CBA holds at these current levels. It has a habit of pulling back into sideways moves and not trading too far below the support level and then turning around and taking off again. A 3.3% cash yield's not exciting from an investor's point of view, when you can get better from other banks. So, I think there, it's running out of steam a bit, as I said. Wait for the yield to come back up again, but don't use that as a reason to buy. Make sure you use some technicals to get the timing right on your entry.

• 20:26Speaker 01

  That's the ideal marriage between the fundamentals and the technicals. And when there's a potential crunch around the corner, remember the fundamentals will lie, the technicals will show you where the money's flowing, and that's the key thing. Now, talking about Commonwealth Bank, this is where investors fall in love with companies like this market, darling, and they don't want to let it go. They're in love with it. Maybe you bought in low, so your dividends are looking really handsome right now. This is, you know, what the challenge is for investors, thinking about, well, I bought it at such a low price, it doesn't matter if it comes back a bit, but how much? What if it halved?

• 21:11Speaker 01

  Is that okay? I don't think you would be looking at it that way.

• 21:16Speaker 01

  So, be really objective, don't be, you know, don't fall in love with it. Just really be black and white in looking at what is the chart indicating? It indicates that there's risk there right now with CBA. What are the fundamentals indicating? It's possible that it will still do well, but maybe it's going to come back anyway because the market decides, right, it's overvalued, earnings are not growing the way that we want it to necessarily, so we're going to re-rate Commonwealth Bank until the buyers and the sellers agree. And look, there's been a few times where I've thought Combank could come back to a particular level, and it's actually held up better, and that's still quite possible.

• 22:01Speaker 01

  So, let's just wait and see. BHP and Rio, these stocks expose the danger of using one year's earnings growth to justify holding them. So, this is where the fundamentalists really need to take a big look back further and have a look at what's going on. Now, if we look over five years...

• 22:25Speaker 01

  And they're talking about normalised earnings, they've actually declined. Now, this data on the fundamentals has come from Simply Wall Street. So you may have a source of your own fundamentals to do research with. It doesn't mean that they're bad companies, it just means that their earnings can be sporadic, which makes them cyclical businesses. You often hear them talk about a shift into defensives or cyclicals. And that's what these stocks are really good for, because at times these commodity stocks will be in the boom phase and it could last for three to five years where we see that happen and then all of a sudden there's a bit of a downturn and then off it goes again

• 23:10Speaker 01

  and you'll see them take off again. But we did see a really long-term correction come in in 2016 on these miners. So that's really key and I'm factoring that into my thinking when I'm looking at how far they could run in the coming years. So now that doesn't mean that just because they've got these negative earnings that you think, oh, okay, well, they've got negative earnings, maybe there'll be a turnaround story next year and that could pump the share price up and it could, there's a potential for that, but just don't hold out for it. Although this period is typically where these companies look really good.

• 23:49Speaker 01

  Commodity prices are holding up, so that's making their earnings look really nice, but they're really exposed to that volatility in the commodities and the underlying investments that they have. It's all about those commodity prices for these stocks. It's a make or break in this time for many companies and it's why we saw Rio fall as far as it did in the GFC.

• 24:14Speaker 01

  Don't fall in love with the dividends. I'm saying to you, it's not something that you can say, oh, well, BHP and Rio are paying this level of income, I'll put my money there. This is not a lasting thing, based on what I've seen in history. Although I think that the earnings are going to be rated higher for longer until we see the next significant rise. So if we see this pullback coming in and then the stocks continue to move up, the yields will drop off. Keep a very close eye on that. The reason being is because if the market's factoring in the yield as well as the growth,

• 24:55Speaker 01

  because remember, BHP and Rio were sideways for about four years, they didn't do a lot, three and a half, four years before they took off. So it's really been playing a catch-up game.

• 25:07Speaker 01

  And if you measured the gains from 2021, it's very different to just measuring it in the past year. And that sort of sits really well with what we're talking about in terms of earnings. Now, it can deliver these really great periods of very strong earnings growth, but then all of a sudden, something changes and the bottom falls out of it. Macquarie is another one. That's another one we need to be cautious about, but it's held up really well, it's got some really strong levels as we show. When we did the recording, we demonstrated where we see Macquarie's strength and that's the level to watch. Over the past five years, its earnings growth's been absolutely terrible, can I say, without

• 25:52Speaker 01

  saying something else. And it trades at 19.3 times earnings, but obviously that depends on what's going on with price and so does the yield, but around 3% is normal for a growth stock, quite good actually for a growth stock. Now, its latest result was strong and it's not consistent in terms of its five-year return, so that's something to bear in mind. Again, behaving more like a growth stock, more like a cyclical stock. Coles is the more defensive one. It's not a high-growth stock typically.

• 26:32Speaker 01

  It's produced only around 1.1% annual earnings growth over five years. So please, stop barking on about what these profits these companies are making. I mean, seriously, look at the percentages, everyone, but no, the media focus on the billions that they're making, not on the actual earnings as a percentage growth. Now, this has a really high PE at the moment, which is unusual for a stock like Coles.

• 27:08Speaker 01

  The yield's good though, so the market likes that, to be getting around 5% with a potential for growth and being in a defensive stock, more likely to weather the storms, tends not to be as volatile. Doesn't mean that something can't go wrong and, you know, something could happen, that's the risk, but at the moment, it's still looked at as more defensive.

• 27:33Speaker 01

  Now, the question really is here, what price does a safe stock become really expensive? And to me, right now, Coles, even though it has the potential to go up again, and there's another level above that we've looked at, which we talk about on the show, which it has got the potential to go there. Will the market push it to that point first or will it pull back first before getting there? That's the big question and we have to keep watching, but at the moment, if you were in it, there's no reason to get out of it. Goodman is a really difficult one to assess, based on its earnings.

• 28:14Speaker 01

  Now, it's a really good example of why you don't blindly follow one metric when you're looking at a stock. So if you're looking at the PE ratio, it looks okay for this type of growth stock, up around 20, but its dividend yield's only around 1.1%. And they're unfranked, so if it's not going to produce enough growth, why would you bother to buy it right now? It could get cheaper, we show you an important level on the show to watch. And looking at some of the fundamentals, Simply Wall Street was looking at negative average five-year statutory earnings growth because of property valuations, which have a significant effect.

• 28:58Speaker 01

  So that's something that's critical to keep an eye on and is affecting all the REITs. Now, its underlying operations are very interesting, particularly the data centre development, which is a strong area for Goodman and it's why the share price has been so well, you know, supported. So professional investors, they're looking beyond the PE and the EPS because of the story, but you need to really think about all of that and at the same time be protecting your profit or capital, whatever, depending on when you bought.

• 29:37Speaker 01

  So if we simplify these 10 down and we really look at what we've got here, if we're looking for growth and reasonable valuations based on the PE ratio, based on fundamentals, then we can see that QBE and from a technical perspective, QBE and Aristocrat still look good. From an income and franking point of view, of course, the miners and Telstra look good. I also actually don't mind Telstra from a growth opportunity point of view, depending on how it pulls back in the next move and sets up for the run. Could be considered a bit more defensive if it doesn't just drop swiftly, but at the moment, it's not giving any indication that it will.

• 30:22Speaker 01

  There's CBA and Westfarmers, they're more the quality-type stocks, but they're very high at the moment in terms of their PE ratios. I just think we're going to see a little bit more of a re-rating on those ones. Defensive income stocks, Coles stands out as being the one, but can it weather the storm as well? At the moment, it's saying so, but we give you a level to watch on the show where you really need to be keeping an eye on that. Current earnings recovery, Macquarie is the story, it's all there, but at the moment, we're not seeing that. Macquarie, if you stand back and you really look at the chart without much on it, we

• 31:03Speaker 01

  can see there that there's a really strong support level for Macquarie to project itself off, but we just need to watch over the coming weeks and see what happens to that share price. It's all about how far it falls from here or how well it holds up, that's going to determine what's next. Now, also Goodman, we've looked at that one, not an income play, but really, it's part of the story, we know that, it's going around about the data centres, but it's held up really well, it's a quality stock and that's what shines. So any opportunity to get this one down the track, that, you know, using proper rules, not just thinking, oh, okay, the price is a lot cheaper now, it's come back really

• 31:48Speaker 01

  big, really strategic about how you do that. Now, this is really interesting, this is not ranking these stocks, this is just looking at how they fit into these different classes. The traditional blue-chip stocks, high dividend yields, quality companies, PE ratios acceptable, QBE, Aristocrat is behaving more like a growth company, BHP, fully franked income, these are more like, these are classed as cyclicals, but they have been classed as blue chips at times as well with higher earnings, but higher risk category.

• 32:33Speaker 01

  So look, I'm thinking here, if I was to look at these, I'd be definitely keeping an eye on the miners, as given that the cycle runs longer, but more from a growth opportunity necessarily than from a blue chip opportunity. But you still have the potential to get a nice yield from those at the right time. That's the key point here. Telstra, BHP, Rio, QBE, Aristocrat, when it pulls back a bit, it needs to prove that this is, this pullback that's happening now is finished and it's about to make a move back up. But have some really good rules for that one as well. So when I put these

• 33:14Speaker 01

  big blue chips side by side, what jumps out is how different they actually are. And this is why you can't sort of sit there and apply a fundamental metric to make a judgment about all the stocks in the top 20. But you can look at the stocks from a technical point of view and say, have a number of criteria all set up telling me that the, the timing's right and the risk is acceptable. That's really the most important thing that you can do right now. Starting with Dale's book is a great place, as I've said plenty of times before. However, invest in yourself. This is a key time, everyone. The best time

• 33:57Speaker 01

  to learn is when the market is heading to a peak. People think, oh, well, why would I spend that money now when potentially I'm not going to be able to take advantage of it? The actual complete opposite is true. You will be in the driver's seat, witnessing what happens, learning the maximum amount that you can gain from this, and then be there ready, like the tiger, in stealth mode, when the, the most significant opportunities in 20 years pop up. But it will take you at least 12 months to grasp all of the concepts and learn it. It will take you two to five years to become that skilled trader. Now,

• 34:41Speaker 01

  we do have programs that can accelerate it. Whenever you're thinking about doing your education, look at, if you go to university, you could pay between 40 and 120,000. Do you think spending that money is going to guarantee you a job when the crunch comes? There will be lots of layoffs. People will struggle to get jobs. The unemployment rate will go through the roof. And this is typically what happens every cycle. So you want to put yourself in the best possible position, even if you don't have the capital now to create a big portfolio, find the funds to educate yourself and put yourself in a good position so that you can trade. And there are different ways to do that with small

• 35:25Speaker 01

  amounts of capital into the market, but at strategic times. And you can, you know, take some income off the table. This is what you really need to be focusing on now, is learning as much as you can to then be prepared. If you're having a few hits, if you've experienced that your trading has gone the other way in recent times, that's okay. Don't shy away from it. Don't fall for allowing your ego to be dented to the point that you've closed off your, your whole thinking, you know, you're not open minded anymore and you, you're caught up in this tug of war in your mind about what's going on. Just empty those thoughts,

• 36:09Speaker 01

  write them down on a, on a bit of paper, empty that jug completely, spill your beans, if you like. And then be ready to absorb as much as you can when you go through the course, because you will know how to look at stocks. You will know when the risk is too great to buy, and when the better opportunities present, the lower risk opportunities that could set you up for life. You know, that's what you're really wanting to do here. This is the pivotal time to be doing it. Now, you have to look at what you're paying for when you're buying into these stocks, particularly now, more so than it has been in the last

• 36:49Speaker 01

  10 years. So you think about the job that this stock is doing in your portfolio. Not that you love BHP or Rio, like I talk about sometimes, I may say that, but it's really the job that this stock's doing for you. And you will be rewarded if you stick with it and stay focused, minimize what your focus is. Don't be reading a whole heap of stuff about the company. If you are worried about how you're going to manage a stock that you're in, maybe the stock's fallen, maybe it looks like it's about to fall. If you don't have the knowledge at the moment, just get a copy of the book. That'll get you started in strategies

• 37:32Speaker 01

  to manage your risk. I hope that's really helped you and, and given you some food for thought. It's really important to be focusing on what is going to give you the most benefit. Now, you can read the fundamentals till the cows come home. It's not going to change anything. You can keep an eye on them. Yes, that's great, because that'll give you some indication about how that company's tracking and what the market will be thinking, because what the majority are looking at. But it won't give you a window into what is really going on and where the money's flowing. You can only get that from the chart. Look at the things that we talk about on the show. Build your knowledge up over the next 12

• 38:14Speaker 01

  months. Make sure that you put your name down. If you, if you're wanting to talk to someone about what course might suit you, our team are going to help you choose something that's right for your budget and right for your, the level of knowledge that you want to get to. And there are different ways to get into this. You know, you just need to make inquiries about how can I fund that? How can I do this now? That's the key thing here. So I hope I've left you with some things to talk about, but I just want to finish up with saying, my trader's choice from the top 20 at the moment is QBE. Fundamentally,

• 38:55Speaker 01

  it's got one of the strongest combinations of earnings, growth, valuation and income. Warren Buffett would go for insurance stocks in times of, you know, crisis, if you like. These stocks still provide really good income generally. Now, technically, it's on a nice uptrend. It's got the trend line protecting its rise. We looked at this on the show. We talked about it. There is still a potential for a short term downside on it, but it may hold. It's holding really nicely at the moment, given that technicals and fundamentals stack up now. It's just about waiting for the best opportunity. If you already own it, then

• 39:38Speaker 01

  you can simply use a monthly chart with a nice line underneath it. Look at the book, work out how to actually apply it yourself the right way. You could also think about BHP, but not right now. Okay, this is actually really interesting from the point of view of the fun, recent fundamentals, but it's a more cyclical stock. So it's going to catch you out at times if you're not watching what's going on with that price chart. It's not a buy and hold forever. You know, when you look at what's happened with BHP over time, what happened in 2011 to 2016, that this stock went into a massive dive. Nobody, well,

• 40:22Speaker 01

  very few people expected it to go as far as it did. Okay, before it started to fall. Bear that in mind. It can always happen again. So I think I've made it clear, my, my conclusion, and I hope you enjoyed my discussion today. All the best with your trading. All the best with gaining an education. Keep the focus on you and what you need. Make small sacrifices, half an hour a day, maybe an hour a day, you know, take a shorter lunch. Use that as part of getting into your analysis and trading. If you're thinking, I don't have the time to do it, look at how you're spending your day and then just say, right, I could fit

• 41:06Speaker 01

  half an hour in, in the morning. If I'd just got up half an hour earlier, I could fit half an hour at night before I go to bed. It's done. I can set little goals for myself each day and each week, and then get there. You need to talk to anybody. You know who to talk, who to call. Take care. I'm Janine Cox, Senior Analyst at Wealth Within. Bye for now.

• 41:31Speaker 00

  This podcast is brought to you by Wealth Within, a global leader in stock market education. For more information on our courses, head over to wealthwithin.com.au. Please note that the information in this podcast should not be considered personal financial advice.