Friday Email: 14 June 2013

The market has continued to fall in line with our expectations and following our continued warnings that a correction was not only due, but necessary. We had a very quiet week on the corporate front but we saw dividend increases across the board for those companies that did report. We had double digit increases from Oxford Instruments and Workspace Group. We saw Halma increase its dividend by more than 5% for the 32nd year in succession and WS Atkins also managed a 4.9% increase.

Looking ahead, we believe that the situation in the US stock markets is looking precarious, although in some ways for good reasons. The economic numbers are starting to look better and better, but the fear of losing the medicine that is QE will, we believe, outweigh any good news. We don't know when, but at some point in the not too distant future, we reckon there will be trouble for equities stateside.

Another relatively quiet week lies ahead on the corporate front with just six companies that we follow reporting. I am particularly interested in the results and forward looking statements of one of my favourite companies, Imagination Technologies (not a dividend payer). They report on Wednesday. 

So, the markets have come off approximately 9% and I am hoping life will get easier in trying to find our dividend of the week. It would be nice to start selecting blue chips again, which have become overvalued and the yields have fallen dramatically in some cases. Further falls in the markets will make this process easier, but right now, a mini rally is probably on the cards.