13 November 2020
FTSE loses some more ground but still on track to end the week firmly higher“After the vaccine-infused euphoria at the start of the week a dose of reality seems to have been administered to the market. The FTSE 100 has taken its cue from falls in the US and Asia overnight to trade 0.7% lower,” says AJ Bell Investment Director Russ Mould.
“Clearly the Covid crisis is not at an end despite the positive news announced by...
12 November 2020
GDP Q3: The Economy Strikes BackA strong rebound in the economy is clearly positive, but we should keep the champagne on ice for now. The summer boom was turbo-charged by the Eat Out to Help Out scheme, while the furlough scheme worked its magic by keeping unemployment under wraps. But if you shut down an economy and then open it up, it’s not hugely surprising that you get a huge...
12 November 2020
Profit taking hits FTSE 100, advertising recovery for ITV“A bout of profit taking was probably inevitable after the blow-out rally sparked by positive news on covid-19 vaccines delivered this week and a busy day for corporate news on Thursday saw the FTSE 100 take a step back,” says AJ Bell Investment Director Russ Mould.
“Record UK GDP growth has little relevance to the index thanks to its global...
11 November 2020
Excluding the sinners, rewarding the winners – how we build our Responsible Growth fundWhen choosing which companies to hold in our Responsible Growth fund, we employ two approaches:
1. Exclude companies that operate in certain business areas, are deemed to not meet minimum standards on human rights, anti-corruption, employment rights and the environment, or have been involved in serious controversies.
2. Reward companies that...
10 November 2020
Land Securities looks to lay foundations for future recovery“Investors look to be shrugging off a 38% plunge in both rental income and a 10% decline net asset value per share and focusing instead on Land Securities’ confirmation of its return to the dividend list, with a first-half payment of 12p per share,” says Russ Mould, AJ Bell Investment Director. “Would-be buyers must now weigh forecasts of a further...
10 November 2020
Markets avoid post-rally pullback and Persimmon is building back income credentials“It’s always a bit nerve-wracking for markets the day after a mega-rally such as we saw on Monday. The fear is that investors got carried away and bid up prices too far, and then reality sinks in and equities fall back,” says Russ Mould, Investment Director at AJ Bell.
“So far, it’s encouraging that Western markets are generally holding up the day...
9 November 2020
Market reaction to Pfizer’s positive vaccine news“Pfizer’s covid-19 vaccine news has acted like a shot of adrenaline for the markets, triggering one of the biggest single day movements in global equities for a long time. A successful vaccine has greater significance than Joe Biden winning the US election as it would effectively pave the way to restarting economic growth globally,” comments Russ...
9 November 2020
Market reaction to Biden victory and Taylor Wimpey supercharges 2021 expectations“Even though Donald Trump has not yet conceded, markets have taken Joe Biden’s election victory to be a done deal which gives another leg up to global equities,” says Russ Mould, Investment Director at AJ Bell.
“Stocks had already started to move higher last week on the assumption there would be a divided government. This expectation extends into...
6 November 2020
Markets have staged an impressive comeback this week and Redrow is holding up well“Global markets continue to feel more comfortable about the likely outcome of the US election and so equities press ahead once again. It’s an interesting change of fortunes with investors feeling nervous only a week ago,” says Russ Mould, Investment Director at AJ Bell.
“As it currently stands, the FTSE 100 is on track to end the week nearly 6%...
6 November 2020
How to protect your finances from a double dip recessionWhether we get a double dip recession in the UK depends largely on whether lockdown measures continue after Christmas.
The economy can now be expected to shrink in the fourth quarter, but if things open up again at the beginning of the new year, we could see growth returning, albeit from a lower base. That may look overly optimistic right now, but...
5 November 2020
Bank of England unleashes £150 billion more QEThe Bank of England has unleashed another £150 billion of QE to help prop up the economy as it enters a second national lockdown. This may not be the end of the Bank’s pandemic interventions, particularly if another lockdown becomes necessary further down the line.
The Bank is beginning to run out of dry powder as it now holds almost half the gilt...
5 November 2020
Sainsbury’s shutters Argos stores, and Trainline picks up speed as it narrows losses“After all the excitement of the US election and news of billions of pounds in fresh stimulus from the Bank of England there were few fireworks on the markets on Bonfire Night as the FTSE 100 ticked 0.2% higher to 5,895.88,” says AJ Bell Investment Director Russ Mould.
“While uncertainty over the outcome of the US Presidential election remains, it...
4 November 2020
The Hassle Free way to Go GreenWe are all working hard to reduce our carbon footprint to protect the planet for future generations, but making changes can be hard without significantly altering our lifestyles – it is hard to give up your car, or stop exploring the world.
Instead many of us focus on making smaller changes in our lives to make a difference – we may choose to...
4 November 2020
Will the Bank of England cut rates below zero?The summer boom has faded since the Bank of England last met and the resurgent second wave of the pandemic has dented the economic outlook. We may get another dose of QE but the Bank is unlikely to rock the boat by imposing negative interest rates just yet given the state of flux in the pandemic and the economy.
However they are clearly warming...
4 November 2020
Market reaction to US Presidential election“Trump declaring that he has won without all the votes being counted caused turbulence on the markets,” says Russ Mould, Investment Director at AJ Bell.
“While perhaps characteristic of Trump’s typical behaviour, it wasn’t what the markets were expecting and so we’re experiencing wild swings in asset pricing.
“Chaos is the last thing people want...
3 November 2020
Crest Nicholson rides wave of housing demand“If anyone thinks the UK’s stock market is unloved and undeservedly undervalued then house builders may be one way to get exposure in anticipation of any improvement in the FTSE indices’ fortunes – or at least that’s one message that can be taken from Crest Nicholson’s trading update today,” says Russ Mould, AJ Bell Investment Director.
“Forward...
3 November 2020
Associated British Foods reaps benefits of conglomerate structure and Crest Nicholson enjoys a bumper period“It’s a firm risk-on mood for investors as equities rise across Europe and Asia,” says Russ Mould, Investment Director at AJ Bell. “The FTSE 100 jumped 1.5% to 5,737, led by miners, oil producers, financials and consumer cyclicals. HSBC, Rio Tinto and BP were the biggest contributors in terms of index points.
“Investors seem to be pricing in a...
2 November 2020
Second English lockdown fails to spark fresh FTSE sell-offThe UK’s stock market seems to be taking the imposition of a second lockdown in England pretty calmly, all things considered, and there are three possible reasons why this may be, even if at first sight a fresh halt to most economic activity is not likely to helpful to companies’ profits, cash flows or valuations.
The first is that the bulk of the...
2 November 2020
Market reaction to new lockdown measures“The main European market indices gave a relatively muted reaction to the latest lockdown restrictions in England, Portugal and Austria as arguably these measures were widely expected by investors,” says Russ Mould, Investment Director at AJ Bell.
“It is important to remember that approximately three quarters of the FTSE 100 generates its earnings...
30 October 2020
Fundsmith - simply the best?Fundsmith has been a tremendous success story both in terms of popularity and performance. Terry Smith has become the poster boy for active management and has broadened the appeal of selective investing at a time when low cost index trackers have bitten off a huge chunk of the funds market.
Fundsmith Equity’s quality growth approach has been in...
30 October 2020
IAG losses mount, NatWest beats expectations on lower impairments“Amid some volatility the FTSE 100 is lower on Friday, down 0.4% to 5,559.59 in early trading following a mixed set of updates from the big technology companies in the US,” says AJ Bell Investment Director Russ Mould.
“US futures are already pointing to falls on Wall Street later and this is impacting on sentiment with global markets on course to...
29 October 2020
Fund removed from the AJ Bell Favourite funds listWe’ve removed Man GLG Japan CoreAlpha
What is the AJ Bell Favourite funds list?
The AJ Bell Favourite funds list is designed to lighten your research load. To narrow the field, we’ve attempted to select a high-quality shortlist of funds which we believe are capable of delivering their objectives over the long term. To make the list, each fund...
29 October 2020
Lloyds gets mortgage and impairments boost, Shell hikes the dividend“Like an imperilled climber the FTSE 100 was left clinging to the rock face this morning after its big plummet,” says AJ Bell Investment Director Russ Mould.
“Helping stabilise the index, after last night’s news that France is entering a nationwide lockdown, was positive news for income investors from BT, top of the leaderboard as it flagged the...
28 October 2020
Lockdown fears haunt markets, Next’s summer sales shine“The FTSE 100 plumbed depths not seen in months as it fell through the 5,700 mark. Investors are waking up to the risks associated with a second wave in the coronavirus pandemic,” says AJ Bell Investment Director Russ Mould.
“News that France is considering a full-scale national lockdown amid surging cases is unsurprisingly spooking the markets...
27 October 2020
HSBC hints at dividend resumption, BP returns to profit“Strong updates from FTSE 100 heavy hitters BP and HSBC weren’t enough to stop the index slipping very modestly into the red on Tuesday morning as investors digested yesterday’s big sell-off in the US,” says AJ Bell Investment Director Russ Mould.
“The rapid increase in coronavirus infections around the globe and in America itself and what seemed...