Crisis bargain hunting #investments
Crisis bargain hunting
It looks like the Greece crisis is over, at least for now, but prices haven’t fully recovered. The FTSE 100 index is still way down off it’s high of earlier this year. At the time of writing, it’s on 6,791.51. Will it go back up past 7000?
I’m doing a little crisis bargain hunting in the wake of the Greek crisis but also looking at what my existing portfolio might do in the near term. My return dropped to almost zero last week and the budget didn’t help. I’m glad to say prices are rising and although I haven’t yet regained the losses, the return is back to a decent 7%.
We can learn from every little crisis and I now think that I’m over-exposed to the AIM market. It is AIM shares that are going up though, Solo Oil is going north on expectations that gas will soon start flowing through the pipeline in Tanzania. Verona Pharma is rising too, but that is still volatile and so there could be opportunities to buy.
I don’t usually sell at a loss, companies will come good eventually or fail altogether. One that looked decidedly risky was Graphene Nanochem, but I think they have secured more funding so I just have to wait. I’m always a little suspicious of companies that operate in the far east. In theory they have great opportunities for growth.
RSA Insurance is creeping up at last and so too is Cable & Wireless; the latter will pay a dividend in August, so that will help.
Premier Foods has invested in some new technology and they too are creeping up, but investors and brokers are being cautious.
I have been looking for bargains and have my eye on Styles and Wood (STY), they soared yesterday and are up over 9% this morning; so maybe I missed that boat. San Leon is worth watching after their 1 for 100 share swap too.
The two things I’ll be watching in the coming weeks are signs of an interest rates rise and signs of an oil price rise. We could even see inflation making a come back. An interest rate rise would be bad news for heavily indebted companies, but good news for insurance companies like RSA Insurance.
That’s all for this week. The only thing I’m certain about is I need to diversify more and do crisis bargain hunting all the time!
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