ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for monitor Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.

Special report – Bargain Hunting

Share On Facebook
share on Linkedin
Print

Equity market sell-offs are good opportunities to dust off the files on companies that have been on the watch list.  It is worthwhile focusing in on quality companies as they are likely to bounce back first.  The four companies we have reviewed are SAB Miller, Ryanair, Merlin Entertainments and the roadside assistance company the AA.

Looking at the reasons for the sell-off and these include the slowdown in China, a fall in emerging market currencies and the prospects of a US rate rise.  Weakness in energy and metal prices also hit the valuations of the resource sector.

It is also notable that after a long period without the S&P 500 having seen a correction a number of sectors appeared to be somewhat “frothy.”  In other words the valuations were high and a number of low quality listings had come to the market.

Going forward and corporate earnings will in part be driven by whether economic growth remains on track or not.  The main threat to global growth is the risk of a meaningful slowdown in China and premature tightening of US interest rates.

However, the Western economies look to be firmly back on the growth track, in our view, with unemployment having fallen significantly in the US and the UK.  The Eurozone is at a later stage of its recovery but has recently seen unemployment fall.

Accordingly, the current sell-off appears to provide a good opportunity to seek out high quality stocks with attractive long-term prospects.  The companies that we had wanted to buy but were perhaps previously put off by the valuations.

Register today to receive our special report Bargain Hunting, and a no obligation free trial to our popular email service

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com