ESB, CFXS, and CF

It’s a funny time for stocks at the moment. We’ve been banging on about moving out of tech and into value for months, but now that it’s happened, where do they go from here? It’s also hard to follow the economic figures because sometimes good is bad, and bad is good! By this I mean, if we see disappointing figures, then interest rates will be on hold for longer and stimulus more consistent, this is good for the economy (well, good for the markets).

If we see signs of the recovery being too quick and too strong, then we might get some tapering (less money being put into the system by central banks) and this means share prices could drop. Rising interest rates would also have a negative impact and that tends to be something that happens when the economy is moving in an upward trend.

As you can see, quantitative easing and large stimulus packages means that just about anything can happen. On the back of this, it looks like it’s another good week for the buy and flat strategies, while the stock pickers have moved a little sideways. This may not be the case for long, there is always more value to be had from picking the right stocks but at the moment, buying the dip seems to be the most solid approach.

‍European Stock Basket has once again had another great week posting 6.9% - this strategy has caught the attention of a lot of investors in the States recently, and it’s easy to see why. Just behind is The FX School making their autotraders 6.6% in the last 7 days and then Cambridge Futures as solid as always with another 5.5%.

These are 3 of the platforms favourites, so lots of happy customers out there this week. The advantage of the buy and flat strategies is that equities don’t have to really go anywhere for them to still make money. Small leveraged dips can provide short term value, and those regular profits add up fast.

Have a great weekend.

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