The point is this:
This report isn’t telling you to buy or sell (or go short) anything. What we want to illustrate is the fact that most UK listed companies had a good year in 2015 – the year in which a potential Grexit, uncertainty about the US Fed’s plans for monetary policy, a Chinese slowdown, emerging markets currency wars, middle east unrest, tanking oil prices, a general commodities supply glut and myriad other negative drivers gave us all the heebie jeebies.
The situation we are in now is not much different: Greece is still on the edge (it’s just taken a back seat because it won’t sell papers right now), Europe still has its growth concerns, China is still engaging in an entertaining but futile round of trial and error with its stock markets and the US Dollar remains a headwind for commodities and emerging markets, not to mention the rise of a particularly unpleasant band of extremists in the middle east. What do you think this means?
It means nothing’s really changed. Banks, miners, oil stocks and a handful of others (together, only about 1/5 of the UK 100 ) had a terrible 2015 on the whole in terms of market returns and bad press. What’s presenting us with buy opportunities here as we move into 2016? Nothing!
On the other hand, 4/5 of the UK 100 managed to weather the storms pretty well in 2015. What’s to say they won’t continue to do so in 2016? Remember, some of these stocks didn’t merely ‘survive.’ They positively flourished.
Know this: If nothing’s changed in terms of the underlying economic climate, then you’re in with a good chance of picking a winner or two by chance alone. There’s still money to be had by trading long only in 2016. Add to the mix our no-nonsense research and the support of a dedicated team member and the chances are even better. If you want to trade short sometimes too, well, the scope is wider still.
At Accendo we’re here to help you trade. Allow us the opportunity to do our job.
You won’t be disappointed.
