The trend's been our friend
Since the launch of the HB Markets Market Outlook in January, our stocks tips – and we do not suggest it is an investment portfolio - returned an average of 35% between 29/01/09 and 15/06/09.
This edition has 36 stocks reviews, spanning the FTSE 100 to AIM, which include 8 further BUY/SPEC BUY recommendations and 8 downgrades.
The good news
Banking has stabilised, quantitative easing and troubled asset release programmes have shored up bank balance sheets and liquidity is improving. Low interest rates have aided a surprisingly robust consumer in certain areas.
The bad news
The housing market outlook remains grim, large capital spend has been challenged, profit warnings, bankruptcies and difficult credit markets persist for small companies and individuals.
There is value to invest in, and we remain very selective in our choices.
With the market stabilizing, we envisage signs of recovery for the real economy in Q1 2010. That is of course if fears of double dip recession do not materialise. In our view inevitable public sector spending cuts will at the very least hamper recovery.
Traffic lights
A simple traffic light system for our sector analysis shows the current state of thinking but also the next step. For example, a green light and an amber light indicates we currently like the sector but investors should become increasingly cautious - a good example is the Pharmaceuticals sector which in our view are defensive but will offer little recovery potential.
Risk Warnings
Click here to see full 'Risk Warnings'.
Disclaimer
The information contained in this report has been taken from sources disclosed in this presentation and is believed to be reliable and accurate but, without further investigation, cannot be warranted as to accuracy or completeness. The opinions expressed in this document are not the views held throughout HB Markets Plc. No Director, representative or employee of HB Markets Plc. accepts liability for any direct or consequential loss arising from the use of this document or its contents. We or a connected person may have positions in, or options on, the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition, we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy, which is available on request or can be accessed via our website at www.hbmarkets.com. The value of your investment or any income from it may fall and you may get back less than you invested. Past performance is not a guide to future performance. If you are in any doubt concerning the suitability of these investments for your portfolio you should seek the advice of a qualified investment adviser.