What’s the worst that can happen?
While we anticipate a scenario whereby a few well known UK 100 blue chip stocks may head south in the run-up to the EU referendum, driven by emotion, then rally strongly (and emotionally) back towards current levels when the UK eventually votes to remain, there’s always the chance that these stocks may already have made the down move, meaning now could be the time to buy.
Whatever the case, the tendency for prices to move up and down within a longer term trend makes for plenty of trading opportunities. What’s more, you can be sure that things will change on a daily basis between now and 23 June with the market reacting in kind. That’s why it’s so important you’re working with a broker that can dedicate the time and energy you need to keep abreast of all the Brexit-related market action. What’s more, with an Accendo trading account you are able to speculate on falling prices just as easily as rising prices. This is an invaluable tool that effectively doubles your range of opportunities in the markets.
We’ve seen an in/out referendum before
The UK 100 shed nearly 400pts from its high point in May ’14 before rallying back into the Scottish referendum, which took place on 18 Sept. Related stocks such as Royal Bank of Scotland (RBS), Aberdeen Asset Management (ADN), BAE Systems (BA), Babcock International (BAB) and Lloyds Banking (LLOY) all moved significantly in the run-up.
We see several sectors that could be significantly affected by Brexit and all the excitement it’s generating currently. Our stocks to watch into the referendum include many stalwarts of UK industry such as British Land (BLND), Unilever (ULVR), Rolls Royce (RR) and Vodafone (VOD). Each has the potential to move significantly due to its exposure to Europe and, indeed, the rest of the world. These companies could also provide great trading opportunities based merely on what their CEOs say – after all, why did they write a letter to the UK public urging it to vote ‘stay’?
To see which are likely to benefit, suffer read on.
