Happy New Year from all at CFM
A new year a new start and so far it is a good one. On the first day of the new quarter the FTSE 100 was trading at a 9-month high. This is partially reflecting the low price of UK stocks relative to their global peers and the concentration of oil, commodity, and pharmaceutical stocks which investors have switched to from tech stocks. In the UK there have been good trading statements about high street sales and even some bid speculation which has not been seen for a while.
Oil price is down 16% this quarter. Prices at the pump have started to come down, although not quickly enough. Gas prices are down 30% this quarter. Eventually this will help disposable income as the year progresses.
Market Review October 5th 2022 to Jan 5th 2023
Markets improved from their October lows. The FTSE 350 up 9%. The US stock markets were mixed S&P 500 up 1% and the Nasdaq which contains technology and biotech stocks down 7%. The HSBC MSCI World ETF ended the quarter -2%. In short UK stocks outperforming and global stocks slightly down. This will be reflected in your portfolios where we favour UK and higher yielding stocks.
For more comment please see Outlook for 2023 and the three themes I see as key: Inflation and the direction of interest rates; and Technology Disruption
Paul Coffin
January 2023
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All articles on this website are for information only and should not be seen as advice or a recommendation to take action. Please note that investments go down as well as up, you might not get back the original capital invested. Past performance is not a guide to any future.