Market risk #investments
Market risk changes constantly. Economic downturns, terrorist risk, perceived risks by rating agencies and political risk all weighs on sentiment. The sentiment that drives buying and selling in the market.
I regard Zopa as a fairly low-risk investment and it now offers three levels of risk for investors. There is now Zopa Access offering a projected 3.5% with ‘safeguard’. Then there is Zopa Classic offering a projected 4.5%. I have my cash in Zopa Classic and the return in practice has been around 4%. Finally, there is Zopa Plus with a projected return of 6.5% with more risk and no ‘safeguard’. This month they hope to add an ISA account to tempt savers too. Many small savers won’t pay tax anyway with the new savers allowance.
Last week saw a huge rise in the share price of Premier Foods as a result of takeover talk. The market has been down this week but Premier Foods still made gains. We now know that Nissin paid 65 for its shares and so we can look forward to a price higher than that. Looking at the potential of Premier Foods and the expectations of the board, I think the price will go to a pound a share this year.
Solo Oil has been a victim of market risk sentiment and dropped last week and slipped further this week. Solo Oil seems to have huge potential with its assets in Tanzania and Horse Hill. My research suggests now is the time to buy and I think we can expect the price to suddenly soar. Most pundits are expecting news this month; that will be about June then…
RSA insurance seems to be coming back into favour with brokers. After the approach by Zurich, we have to watch for the likelihood of merger or acquisition.
I think the perceived market risk will be high until we get this silly referendum out of the way. If it’s a vote for out the government will save some money but some exporters could have problems as a result. The whole thing is a badly timed idea. I think the market sentiment will be more positive once we get this nonsense out of the way. What next? Elected mayors? Will English MP’s decide English policy? Politicians will play and keep changing things and so some political risk will always be there. I think there should be a referendum on HS2…
Of course, I don’t give investment advice, I just share ideas. I think investing in Verona Pharma could be a good idea at the moment. I see no reason for the drop in their share price and many reasons why it should soar.
That’s all my ideas for today. Why not follow this blog for more ideas on market risk or follow me on Twitter for updates. You can also find ideas about art, music and photography on my Facebook Page.