Friday Email: 17 October 2014
Every Friday morning our lead analyst Mark Riding sends out his weekly run-down and upcoming events in the investor calendar, like this one:
Another horrible week, but we love this kind of market. We currently have 24 stocks yielding over 7% on the Optimizer if the forecasts are correct. As the fear continues buying opportunities grow.
The FTSE 100 52 week range is from 6904 to the 6072 that we saw yesterday, down 12.1%. Thats a pretty decent correction. I was just looking at some Motley Fool articles suggesting the FTSE 100 can fall to 5000. I do not agree. If you think that is possible, then sell all of your holdings today or put in a very strong hedge against them. I do not think we are too far from the bottom. Yes. Volatility will continue, but most of the decline has probably already happened. The current panic is against a backdrop of very solid growth in earnings and dividends and in the absence of hundreds of profit warnings (we have not seen very many) many companies are starting to look really excellent long term value. Most of last years gains have been eradicated as the market started 2013 at 5898 on January 1st.
We only had three declarations in the past week; Bellway (up73%), WH Smith (up 14%) and Booker (up 16%). Not bad.
The week ahead brings us Glaxo, Home Retail, Bloomsbury, Debenhams, Unilever, Tesco and Stobart Group. The US earnings season is just around the corner and that will be telling, in particular the outlooks given by US Corporations.
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The Friday email is delivered to over 20,000 subscriber’s every week, and remains a widely read run-down of recent events and what investors can expect in the week ahead written by our chief analyst Mark Riding.
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Read next: 10 October 2014
The markets are still bouncing around all over the place and volatility remains very high. The clothing retail industry is under severe pressure as evidenced recently by Next and confirmed yestereday by N Brown who lowered market expectations for the full year and of course took the requisite tonking from the market, which at that stage was recovering after a big rise on Wall Street. However, the German export numbers were to reverse any short term euphoria and it has to be said they were very bad; down 5% and traders took fright over here and in the US as the Dow fell over 300 points.
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