The Macquarie Group Ltd (ASX: MQG) share price climbed 35% in April 2020. What will it do in May?
The large global investment bank was one of the top ASX blue chip performers last month. It helped the S&P/ASX 200 Index (ASX: XJO) to one of its best ever months.
What's happening for Macquarie?
The problems for Macquarie are fairly obvious. A shutdown of various economies crimps the ability of Macquarie to make solid profit. The initial public offering (IPO) market has dried up, asset prices have fallen, commodity prices are down and the coronavirus could cause big problems for the banking segment.
What's going to happen next to the Macquarie share price?
Macquarie is scheduled to release its full-year result on 8 May 2020, so in a week we'll get a really good insight into the Macquarie numbers.
How much will its assets under management (AUM) have fallen? Will there be write-downs and provisions?
Previous guidance and estimates can be thrown out of the window for most businesses, particularly financial shares. It really depends how long economies remain in lockdown and how fast countries can get back into the full economic swing of things.
The Macquarie share price is down almost 3% today and it's still down by about a third since the start of the share market falls. I don't think Macquarie is out of the woods at all. The actual financial statements are going to show us a lot of pain compared to six months ago.
Don't get me wrong, I'd rather buy Macquarie over the big ASX banks of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB). But there are a lot of other shares I'd rather buy first at the current Macquarie share price. There are too many unknowns with Macquarie.
