This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” – Warren Buffett.
Probably my favourite financial maxim. It often seems counterintuitive but actually constitutes good advice.
When the UK 100 Index recently fell to 5,500 my phone wasn’t exactly ringing off of the hook, yet it has done this week with the index trading 12.7% higher at 6,200. Investors weren’t keen to get into the market at the lower level, but are at the higher level. Herein lies a common mistake. We’re told to “buy low, sell high” (another very logical maxim). The problem is that low prices come in troubled times, when our instincts say “don’t get involved”. But this is exactly when Warren Buffett prefers to strike.
During the subsequent 700pt rally in the UK 100 , some stocks have appreciated greatly. Lloyds Banking Group has climbed some 30% from its lowest price. Anglo American the stand out performer having rallied 100%. Tens of stocks have climbed double-digit percentage points in just weeks – Did you buy? Are you still considering buying? I wonder if Warren Buffet is looking to sell now?
The key here is to react quickly to market developments – “if you snooze, you lose!” (GREAT MAXIM!).
The Research Team at Accendo Markets rarely misses a trick (does Warren Buffett read it?). On a daily basis they are delivering breaking news to our clients. The sort of news that investors need to keep pace with the market professionals, to ensure that you’re given the earliest opportunity to react, and hopefully prosper.
If a listed company, right now as I type, say a bank, issued a statement to the market saying “we’ve run out of cash”, you know where that share price is heading. But would you have known? When would you learn of this event? The pros will know straight away and react immediately – they’ve got the upper hand eh? This is the sort of information that’ll be delivered to our clients pronto.
Sample this information for yourself, I’m sure you’ll love it. Click here to receive our research material for two weeks.
Marc Kimsey, Senior Trader, 4 Mar
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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