7 January 2020
World Investment Outlook – Chapter five: Western Europe PoliticsThe year 2019 began with Donald Tusk, the outgoing President of the European Council, saying that he thought there would be a “special place in hell for those who promoted Brexit without even the sketch of a plan”.
Relations with the UK could remain tense for some years to come but Britain is not on its own in this respect. The EU’s...
7 January 2020
World Investment Outlook – Chapter six: Emerging Markets PoliticsRussia remains the subject of certain EU (and American) economic sanctions and Ukraine remains a bone of contention in more ways than one. Eastern Europe’s influence could go global in 2020 because Ukraine’s President - Volodymyr Zelensky, a former actor and comedian who created a show about a fictional leader of his country - is embroiled...
7 January 2020
Aston Martin crashes again, and Morrisons keeps its chin up“Markets were in a happier mood on Tuesday as it looked like investors’ fears had subsided over an escalation of tensions between the US and Iran. Stocks in Europe and Asia rallied, with supermarkets, tobacco and airlines among the sectors in demand on the London market,” says Russ Mould, Investment Director at AJ Bell.
“The pound jumped 0.17%...
6 January 2020
Markets in reverse on Middle East tensions and weighing up the impact of higher oil prices“A sense of nervousness is hanging over the markets as the new trading week kicks off. Investors are worried about Middle East tensions escalating, hence why equities fall across Europe and Asia,” comments Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 fell 0.5% to 7,588. Overseas, Hong Kong’s Hang Seng index retreated 1%, Germany’s DAX...
3 January 2020
Apple hits new all-time high one year after profit warning“The difference could hardly be bigger. On 2 January 2019, Apple issued a profit warning that took its shares down to an 18-month low. On 2 January 2020, the same shares reached a new all-time high, just above $300 to put a $1.3 trillion price tag on the same company. The question that investors have to ask themselves now is can Apple repeat the...
3 January 2020
We’re making some changes to our AJ Bell fundsOn 6 January 2020, we’ll be making a couple of changes to our range of AJ Bell funds.
If you hold one of our funds, you’ll already have received a corporate action notice describing the two changes. But to remind you, here’s an explanation of what we’re changing, and why.
We’re renaming the fundsFirst, we’ve decided to rename the AJ Bell growth...
3 January 2020
Major escalation in the Middle East boosts oil and gold, and Next defies retail gloom“It's never likely to be good news for the markets when ‘World War III’ is trending on Twitter. It is therefore hardly a surprise to see yesterday's positive start to 2020 for stocks come to an abrupt end after US air strikes on Baghdad airport killed top Iranian general Qasem Soleimani.
“This pre-emptive action – Soleimani was apparently helping...
2 January 2020
Markets kick off the New Year with a bang, and will retailers have any festive trading joy?“The FTSE 100 is off to a solid start in 2020 as the markets eagerly await signature on a phase one trade agreement between the US and China, promised on 15 January.
“Miners were among the top performers and UK property investor British Land topped the list of laggards.
“Although the last 10 years have been turbulent ones for the index, investors...
27 December 2019
The best and worst performing global stock markets in 2019The best performers in 2019 have been Russia, Greece and Dubai-Kuwait, with Brazil, Italy and America next in line. The US represents almost two-thirds of global market capitalisation so a 27.4% gain from its stock market, as benchmarked by the S&P 500 index, helped the FTSE All-World to rise by more than a fifth during the course of the year.
It...
23 December 2019
Eleven 'ten-bagger' stocks from the past decade"The list of FTSE 100 winners over the last decade, in total return terms (i.e. dividends reinvested) contains no fewer than five ten-baggers which have provided returns of more than 900% each. Looking further down the market cap scale and there are a further six ten-baggers in the FTSE 250. £1,000 invested in JD Sports at the beginning of the...
20 December 2019
Impeachment unlikely to derail US stocks for long, if at all“The Democrats have got their wish and the House of Representatives has passed two motions of impeachment against President Trump. Whether either the US electorate is likely to care remains unclear but based on the two impeachment episodes of modern times financial markets are likely to remain unruffled – especially as the Republican majority in...
20 December 2019
Best and worst performers in the FTSE 100 in 2019The FTSE 100 may have confounded a few doubters with a 17.2% total return in 2019 (including the reinvestment of dividends), despite concerns over weak economic growth, Brexit and the December general election.
Sceptics will counter by pointing out that the UK still underperformed on the global stage, lagging the FTSE All-World’s total return by...
18 December 2019
What does BMO's closure of their ETF business mean for you?Canada-based bank BMO has recently decided to close its European ETF business. That includes 13 ETFs in total, many of which are focused on specialist investments such as high yield or high income.
These ETFs are due to close on 21 January 2020. If you hold one of these ETFs when this happens, you’ll have the value of your investment returned to...
18 December 2019
Sterling remains on the back foot and Pearson hopes to write a new chapter“Sterling continues to slide, surrendering its post-election gains, after the new Conservative Government legislated to rule out an extension to the Brexit transition period which ends in a little over 12 months’ time.
“Legislation can be reversed and time will tell if this is a negotiating tactic, political ploy or a genuine commitment to going...
17 December 2019
Why the FTSE 100 has a chance to challenge 8,000 in 2020The FTSE 100 is barely any higher than three years ago and the pound is still way below where it was in summer 2016, so it is relatively easy for value-seeking contrarians to make a case for a UK stock market which has underperformed, feels unloved (judging by fund flow data) and looks potentially undervalued on the basis of earnings and yield. As...
17 December 2019
Markets in retreat and Unilever’s major setback“The party was good while it lasted. Following two days of strong stock market gains, Boris Johnson has now poured cold water over the celebrations and sent the pound and various UK stocks falling on the renewed threat of no-deal Brexit," says Russ Mould, Investment Director at AJ Bell.
“Arguably this isn’t new news as during the election campaign...
16 December 2019
Sports Direct mounts a comeback and Cineworld’s latest acquisition fuels debt concerns“Investors may be disappointed that we haven’t had a continuation of Friday’s impressive rally in UK equities on the same scale. However, they should also be relieved that we haven’t had a pullback with widespread profit taking,” says Russ Mould, Investment Director at AJ Bell.
“Many UK domestic names in the FTSE 350 index held their price on...
13 December 2019
Stocks, bonds and sterling react as markets hope for break in Brexit deadlockMarkets had been taking their lead from the opinion polls and pricing in a clear-cut victory for the Conservative Party and that is what they have got. I have even heard some psephologists assert the Tories have won their largest percentage of the vote since 1970 – which is some ways is pretty ironic, as in 1970 the Conservative leader and winner...
13 December 2019
Three sectors that might benefit from the post-election surge in sterling“The pound’s surge to a 19-month high against the dollar at around $1.35 and a three-year peak against the euro north of €1.20 is grabbing all of the post-election headlines but sterling’s gains are also putting a bit of a lid on the FTSE 100,” says Russ Mould, AJ Bell Investment Director.
“A strong pound decreases the value of the overseas...
13 December 2019
General election results - market reactionThe Conservative majority win at the general election has driven a rally in the pound and UK domestic stocks. The currency jumped 2.7% to $1.34189 compared to last night on confirmation that Boris Johnson’s party had been victorious and that this outcome removes several key risks that have been hanging over the UK stock market.
It removes the...
13 December 2019
What the Conservative win means for your personal financesAfter a thumping Conservative victory in the general election yesterday, Prime Minister Boris Johnson’s first task will be to deliver on his key promise and ‘get Brexit done’.
But beyond Brexit, the Tory manifesto also set out a number of tax and pension priorities for the next 5 years.
Personal taxes, benefits, mortgages and childcareThe Tory...
12 December 2019
Markets calm as UK votes and Dixons faces a hard slog“Investors seem calm on the eve of the UK General Election with the FTSE 100 up modestly and sterling steady, having recovered from a sell-off early yesterday on signs the polls were tightening,” says AJ Bell Investment Director Russ Mould.
“Just before voting opened, the polls suggested that a Conservative majority, seen as the preferred market...
11 December 2019
FTSE 100 earnings forecast momentum falters as election draws near and sterling ralliesThe FTSE 100 got tantalisingly close in July to its May 2018 all-time high of 7,877 but it failed to kick on and one reason why was that corporate profit forecasts have started to trickle lower, hindered by weaker commodity prices, a sluggish domestic economy and the pound’s late-year rally. Since the start of the year, pre-tax income forecasts for...
11 December 2019
Sterling slides as election polls tighten, and Stagecoach on a new leg of its corporate journey“Polling, which suggests a hung parliament is still a credible outcome after Thursday’s UK General Election, saw falls for sterling and UK-focused stocks as markets reacted to the threat of renewed uncertainty.
“The multi-national FTSE 100 trades higher but the more domestic FTSE 250 is under pressure as investors nervously await the results of...
11 December 2019
Will latest Ted Baker warning leave the retailer vulnerable to a bid?“Shares in Ted Baker are down by 80% this year and 90% from their 2015 peak, so some shareholders may now be hoping (or even praying) for a bid to put the company out of their portfolio’s misery,” says Russ Mould, AJ Bell Investment Director.
“Founder and former CEO Ray Kelvin’s 35% stake in the business means some see him as the logical buyer...