This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Since the 1st of Jan the FTSE100 is up 900 points, from lows of 6,500 to current highs of 7400. In one of the best starts to the year for a decade…Brexit? What Brexit?! 47% of FTSE100 members have risen in excess of 10%.
One sector which has had a stellar first quarter: Mining. All 6 big name FTSE 100 miners are up, for an average gain of 16%, even allowing for safe-haven silver and Gold specialist Fresnillo, up just 1.5%. Is this the beginning of the end, or merely the end of the beginning?
Have you missed the boat? Not necessarily, because many stocks remain a way off prior highs. Anglo American has 33% upside to Feb 2012 highs. Antofagasta 18% (June 2018 highs), BHP Billiton 8% (July 14 highs), Fresnillo 15% (Feb highs), Glencore 23% (2018 highs), Rio Tinto 27% (May 2008 highs). It’s fair to say that there could be considerable mileage left for this rallying sector!
With the FTSE just 500 points from last year’s 7900 record high, how far can you allow these Miners rally before you act? Too many retail investors waste their time about trading “costs”. What about the cost of lost time and opportunity? So far this year you would have missed out on sector gains of 25%+, which would have easily covered any trading costs.
The question you need to ask yourself is, are you holding back because of personal emotions about geo-political events? Many are certainly doing just that. I understand why. But guess what? Most retail investors get it wrong, that’s why they are retail investors and not professionals.
We send out hand-picked trading opportunities daily, helping clients identify winners, be they stocks in the throes of a rebound, trading in a range, benefiting from momentum or in the midst of a breakout.
So stop procrastinating and take action. Get access to our Research Gold Pass. Whether you’re a bull or a bear, I am convinced we’ll have something for you. Maybe even some of those exciting Mining names.
Christopher Peters, Trader, 5 April 2019
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.Prepared by Michael van Dulken, Head of Research