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By Malcolm Stacey | Saturday 8 September 2018
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Carpeters. The Footsie led a disappointing dance downwards last week. But will the slide continue? I don’t think so. There is still a lot of unjustified fear over Brexit. There is still overdone anxiety over trade wars. And while the City is worried stiff over these issues, the bulls among us are cheerfully listing the market’s plus points.
For one thing, British politics favour rising share prices. The Tories are seen as the champions of capitalism. And they’ll probably be in power for the next ten years, as Labour continues to tear itself apart.
New Labour was seen as a friend of business. Corbyn’s Labour is regarded as its enemy. But Jeremy is unlikely to be prime minister with so many Labour MP’s unhappy with him.
Next is the American success story. Its growth is burgeoning as Big Donald, however dangerous some regard him, seems to have set the USA on Recovery Road. Its GDP is growing fast. And where the Dow goes, the Footsie still follows.
Meanwhile, that other economy which affects the world, China, is steadying. There have been fears about falling growth, but they are evaporating.
Yes, trade wars, fuelled by Trump, will not do China any good. But with the Chinese imposing tit for tat tariffs on American imports, it will make our exports more attractive to the Asians. While the rising dollar and falling pound will make our stuff and services even more desirable worldwide.
Then we have the run-up to Christmas. This is still a month away at least, but when it kicks in, we can expect, backed by recent history, to see share prices rise on a wave of seasonal jollity.
Finally, we have oil prices. You’ll have noticed the high cost at the pumps. This is because Brent Crude is soaring. This should make oil monoliths s like BP (BP.) and Shell (RDSA) turn in huge profits next time. And when oil firms do well, so, for complex reasons, do most shares.
And now let’s count our blessings in the Punter’s Return. God bless.
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