This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Finally, we have seen some consistent and continued positive momentum across global indices this week. With Record highs being struck stateside on the Dow Jones, The S&P 500 and the Nasdaq and fresh multi month (10 month highs) on both the UK 100 and the German Dax.
This, however, raises one crucial question? Is now the time for the European markets to play catch up, with record highs of their own?
For the past 12-24 months, it feels as though all I have heard from some retail investors is “But what about Geopolitical concerns”, “What if Trump tweets”, “What if we have a hard Brexit”. The list continues but I won’t force you to read more of these…. I simply ask you one question: “What if the market has already priced in a worst case scenario?”
The UK 100 has already railed 1,100 points since 2019 lows (January). However, it remains 300 points away from last year’s record highs (a level also struck at a time when global background noise and major events were taking place!). Surely, then, all its underlying equities are around record highs too then? Far from it!
The following are just 5 of the UK 100 which remain significantly off their 12 month highs;
The above list is not exhaustive, but shows that although you may have missed part of the movement, there are still shares lagging behind the rest. There will always be a reason not to trade. There will always be a “what if?”. But what if your, “what if” turns out to be an “If only?!”. Calling the top and bottom is often more luck than judgement, so why try? Why not just try and capture some of the movement!
Whether you like to trade Banks, Miners, Retails or housebuilders all have potential to deliver big share price moves next week. To stay in the loop about what could move them and to receive daily trade ideas, make sure you sign up to our Research Gold Pass.
Enjor your weekend.
Chris Peters, Senior Trader, 5 July 2019
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