Politics and market confidence #investments
The announcement of a snap general election didn’t do much to inspire confidence in the markets did it? Market confidence is all important. Investors want stability and certainty unless they are contrarian investors who like to profit from the volatility.
Looking for bargains
At times of uncertainty when investors lack confidence it is a good time to look for bargains. Carillion hasn’t been inspiring the market just lately and the brokers have been writing it down. So I made Carillion my latest investment this week. I think the price could slide a little more before it starts to recover but we have a good dividend to look forward to. It goes ex-dividend in a couple of weeks.
My portfolio isn’t looking very good mainly because I sold some of the best companies. It has looked worse, though. Solo Oil continues to drift lower but rumour has it that good news is imminent. We shall see. I’m expecting improvements in ITV, Lloyds Bank and Debenhams but we might have to wait until after the election now.
The AIM market
On the Aim market, I still have high hopes for my pharma stocks, Immupharma and Verona Pharma which is getting US approval for trials and has applied to list in America on the NASDAQ market.
Market confidence in Premier Foods still seems subdued but it is climbing gradually. I need the price to go up 2p to see a profit. I think it could do much better and I am pleased to see them making Mr Kipling cakes gluten-free at last. They should list all the ingredients on their website, if they want me to eat them.