This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
While many investors have sat on the side lines, lamenting Brexit and economic Armageddon in the UK, 6000 has become 6900. US stock markets have continued to make record highs despite having a central bank that’s desperate to have everyone believe it’ll raise interest rates. Of course markets there are very happy indeed that it probably won’t. Following on from that, answer me this: What do you think happens to a stock index when the central bank doesn’t merely refrain from tightening, but throws the kitchen sink at the market with a massive stimulus package – and then promises more?
That said, I’m really hoping we don’t get yet another repeat of what we see so often: investors missing out on hundreds of points worth of upside because ‘there’s too much uncertainty at the moment.’
What uncertainty?
Brexit? In case you didn’t notice, nothing has changed there and won’t do so for at least two years. OK, so things aren’t the same today as they were on 22 June. Oh, wait a minute, they’re better!
The weak GBP? Holidays may get more expensive, but a lot of UK 100 equities have been given higher valuations by the markets as a result of it.
Poor data out of China? Are you kidding? Bad data out of China gets Pavlovian investors dribbling with excitement at the prospect of economic stimulus from the PBoC!
Seriously, don’t be left out of this one. Trial our research here for the next two weeks and you’ll know exactly what I’m talking about.
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