Value in US & UK Stock Markets

In recent blogs I have suggested price and value are not the same thing. An index or stock price may reach a high but that does not necessarily make it expensive. Similarly a collapse in the price of an index or stock does not necessarily create good value nor is a signal to buy. Remember the concept of “value traps?” …

Investment according to the Duke of York

It probably did not escape your attention that the FTSE 100 index set a new record high of 7,129 this week before falling back to close at 7,011 on Friday. The post Brexit vote bounce since 23rd June is attributable to the sharp drop in the pound against other major currencies notably the dollar and euro, boosting the value of …

Seismic or Temporary Shifts?

One of the most interesting aspects of my job is to produce updated portfolio valuation statements for my clients’ investments. Sometimes it makes good reading, other times not. In my report I compare the figures with previous valuations, typically undertaken six months’ earlier. Aside from the change to the total figure it is very instructive to see investment trends i.e. …

Fears about Dividends from UK Blue Chips

According to an article in “Investment Week,” UK equity income fund managers have expressed concern about a squeeze on dividends from FTSE 100 companies. Larger companies came back into favour last year on the back of rotation from US equities, attractive valuations and a sell-off in smaller companies and mid-caps. However the sustainability of dividends has been questioned as first …

The Importance of Valuations and Value Investing

You could not have failed to notice that the FTSE 100 index has pushed past its previous all-time high of 6,930 in December 1999. As I write this morning it is trading at 6,952 up on the back of news that the date of US interest rate rises is likely to be pushed back. With equities doing well investors may …

October Blues, US & UK Update

Global equity markets have pulled back since mid-September, not long after the FTSE 100 index was close to breaking through the elusive psychological barrier of 6,930, its December 1999 peak. So what is happening? A number of factors have weighed on equity markets. The political protests in Hong Kong have been a worry as have stock specific issues, notably Tesco …

Half Time Team Talk

In football parlance, for investors we have just come out for the second half. So what is the half time assessment of stockmarkets in 2014? My brief comments are based on my own observations and those of Neptune Investment Management, M&G and Neil Woodford, formerly of Invesco Perpetual and manager of the newly launched Woodford Equity Income fund. Equity Market …

Who Would be an Investment Adviser?

No sooner had I made the case for UK mid-caps (blog post of 8/4/14) there was a sharp sell-off in this sector. So was this a bad call? You could easily conclude this. However you could adopt a more practical opportunistic approach. Listen to your IFA’s recommendations and then short them by doing the very opposite or wait a few …

Time to Consider UK Mid-Caps?

Medium sized companies, also referred to as mid-caps have delivered cracking returns in the last five years, outperforming large companies in the UK by a wide margin. Mid-caps you are no doubt aware are typically represented by the FTSE 250 index.  In 2013 commentators suggested valuations of medium sized companies were high after the strong rally and I have avoided …