Ending a year of volatility #investments
The stock market will close at lunchtime today and for small investors, it will be the ending of trading for 2016. Did we have a good year? I saw my portfolio take a huge dive following the Brexit vote but as the market recovered my returns recovered too. So I’ll be ending 2016 reasonably happy with my investments.
Lloyds Banking Group
I bought back into Lloyds after the Brexit vote and I’m still making a small loss but I expect that to do well when interest rates increase. I am hoping for a 50% upside on their share price. With their recent acquisition of a credit card company combined with higher interest rates, we could see 100p a share in 2017.
GSK soared following the vote but has dropped back since. I think their results will be good because of the favourable exchange rate against the dollar. Other companies in my portfolio will benefit too. Pharmaceuticals and oil companies are all benefiting from the lower value of the pound as well as some other exporters. I have seen Immupharma recover in 2016 too and I expect a good return on my investment there as well as Verona Pharma.
Royal Dutch Shell (B) was a good choice this year too and should give me a return of 20%. I’m hopeful that Solo Oil will soar in price soon as news of the new well in Tanzania hits the market. Graphene Nanochem came back to the market and promptly won an important contract in China. Most private investors had given up and expected to make a 100% loss and so any progress was good to see.
Ending the year
The FTSE 100 will be ending the year on a high at over the 7,000 mark. I have a few companies in the main indexes such as Tesco and Taylor Wimpey that are ending the year well. The AA and Premier Foods have recovered a little and look promising. The losers include ITV and Debenhams but they can still make a comeback if they did well over the Christmas period.
Finally, there is Monitise which could soar to new heights in theory but there is little sign of it so far.
What should we invest in for 2017? I’ll be watching banks and construction as well as oil companies. I’ll be staying away from the AIM and looking for safety in the light of the impending decision to trigger article 50 which will be the beginning of the end for our membership of the EU. I think the markets will be volatile again in 2017 so there will be opportunities to make money and lose money. I prefer the former.
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