This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Next Friday it’ll be confirmed, the UK will have voted to remain or to leave the European Union. The market reaction will be immediate, aggressive, and likely for a period, sustained.
In recent weeks the market has climbed on hopes of a ‘remain’ vote and declined on the potential of a ‘leave’ vote – the market has shown its hand, it likes ‘remain’ and dislikes ‘leave’ on the basis that a vote to leave the EU would cast a cloud of uncertainty over the stock market.
A note from Morgan Stanley has suggested the Brexit reaction will be severe regardless of the outcome, citing a UK Index rally towards 6,800pts if we ‘remain’ or a crash to below 5,000pts on a ‘leave’ vote – the best part of a 1,000pts one way or the other! Simply put, stocks are going to look beautiful or ugly come Friday morning.
Accendo Markets provides trading tools which enable retail investors to play the market in BOTH directions. Yes BOTH directions. You can prosper from a falling market through the process of short-selling and no, it isn’t complicated. If you do not have access to such a facility then NOW is the time to investigate. If the market goes up, great. But what if it crashes? What are your options if the UK votes to leave the EU? To what degree would your portfolio suffer? What if Morgan Stanley is correct and the market sheds 1,000pts?
In today’s world of trading, the technology and tools that are available, it is inexcusable for traders to not have a ‘Plan B’. For more information on how you can play the forthcoming, trading event of the year – email me at [email protected].
If you act swiftly there may be time for you to get prepared.
Have a great weekend
Marc Kimsey, Senior Trader, 17 June
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
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