Friday Email: 15 July 2016
Every Friday morning our lead analyst Mark Riding sends out his weekly run-down and upcoming events in the investor calendar, like this one:
Things have moved on a lot in a week and we already have a new Prime Minister which is good for the markets as it removes the political uncertainty surrounding the leadership of the conservative party. Since the aftermath of Brexit, both the FTSE 100 and FTSE 250 have risen by over 10%. In fact, since the February low, the market has risen by over 20% which technically means we are in a bull market.
In spite of this investors need to be wary as the future remains uncertain in the aftermath of Brexit, but it is good to see people getting on with it and accepting that we must plan for a new era. The pound remains weak and the markets are sifting out the winners and losers from this important development. Exporters will do well, but we will be importing inflation, which with current very low rates of increase is not such a bad thing.
The past week saw Micro Focus increase its final dividend by over 50% in dollar terms. What a performer they have been over the years. There was also a 38% increase from Dart Group and Supergroup will be paying a special dividend.
The week ahead sees little in the way of corporate news.
The DividendMax model portfolio is trading in line with the market since the start of the year and is up about 6%. The trading portfolio is performing extremely well boosted by the addition of Galliford Try last week which is showing a weekly gain of over 20%.
New into DividendMax this week at the request of members we have Begbies Traynor group and Twenty Four income.
Off to Lords for England v Pakistan in what should be a good series.
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.
It’s included as part of the free DividendMax trial.
Read next: 08 July 2016
They say every cloud has a silver lining and that's what has happened with DividendMax this week. We have had the most sign ups for paying members in a single day and the most in a week since our inception in 2011. Many people seeking yield opted for property which was a little overheated and the perception that Brexit was bad for property caused a run on property funds leading to a suspension in trading at some of them. Now these funds may have to sell properties in order to meet the redemptions and this will take months rather than weeks. Money will move into equities for yield and as we said last week, the safest place is in the big dollar earners.
— Interested in a free trial? —