Novice Musings on FTSE Buys This Week 12/06/22

[Greenmantle]

Last week the market dropped over 2% with every sector in the red except precious metals and mining. The market PE continues to fall, presently 13.1 against a one-year average of 16.8. Should we be concerned about PE contraction in the market, it being one indicator we are extending into a bear market? However, this is not the case with all sectors and so does this mean we can still find opportunities?

Possibly, but this week I am sitting on my hands. Let us also wait and see tomorrow morning's UK data.

[Greenmantle]

Well, the market went red and so to stay away seems the right thing to do. Fresnillo and National Express bucked the trend but their fundamentals do not suggest they are a buy. Precious metals may be a safer sector but I not really see any opportunities in the FTSE.

[PirateRadio]

10 minutes ago, Greenmantle said:

Well, the market went red and so to stay away seems the right thing to do. Fresnillo and National Express bucked the trend but their fundamentals do not suggest they are a buy. Precious metals may be a safer sector but I not really see any opportunities in the FTSE.

A good trader Buys and Sells as well, identifying the opportunities it should not be that difficult in a proper, undistracted and designed for environment.  . Staying away is an outside or a beginner's emotion which I believe we are not here for, or to account their money  .

[Greenmantle]

Being new to forums I may not have been clear about my intended conversation which is “FTSE Buys This Week” i.e. potential investment buys for those of us with IG Share dealing accounts. I disagree that in a falling market, as we have this week, staying out of buying shares is either an emotional or beginner’s decision. For me, it is soundly sensible. However, if anyone has purchased FTSE shares for their portfolio this week it would be interesting to hear about their strategy for doing so as I am eager to learn.  

If there is interest in investment strategy amongst new traders, I will move this thread over to “New Client Trading Questions” under “New to IG” next week to continue, hopefully, an exchange of ideas. I accept things may be a little quiet whilst the market continues down but it would be good if we could all catch the bounce when it eventually arrives.

With announcements by the US Federal Reserve and the Bank of England due tomorrow I am still very much keeping out of (buying) the FTSE market. Does anyone disagree?

[Greenmantle]

A further thought on interest rates:

A change in interest rates is likely to impact the share price immediately. Conventional wisdom suggests the expected rise in interest rates from the Fed (Wednesday) and BoE (Thursday) will have negative effect on share prices. It is obviously more complicated than these two statements but I still see a further fall in the market with a further interest rate rise this week. However, there may still be some interest in financials.

Is anyone looking at this sector: particularly Standard Chartered and HSBC?

[Greenmantle]

NOT A DIP OR DUE A BOUNCE?

It has been a bad week overall for equity buys. We have seen higher interest rates from the Fed and BoE but do we have a recession ahead or simply slower growth?

At the time of writing 80% of FTSE 100 stocks are positive today. So, looking at the chart below are we due a bounce back to around 7650 that we saw in March and May?

Comments are welcome, especially from the IG Smart Portfolio managers, on the FTSE market direction and whether we will see a sustained bounce providing opportunities to invest in equities in the forthcoming weeks.

[MongiIG]

11 minutes ago, Greenmantle said:

NOT A DIP OR DUE A BOUNCE?

It has been a bad week overall for equity buys. We have seen higher interest rates from the Fed and BoE but do we have a recession ahead or simply slower growth?

At the time of writing 80% of FTSE 100 stocks are positive today. So, looking at the chart below are we due a bounce back to around 7650 that we saw in March and May?

Comments are welcome, especially from the IG Smart Portfolio managers, on the FTSE market direction and whether we will see a sustained bounce providing opportunities to invest in equities in the forthcoming weeks.

Thanks for sharing @Greenmantle

 

All the best - MongiIG