Week 49 of 2011.
Signs that the UK were disinterested in remaining within the Euro Elite was evidently clear by Wednesday when Manchester took the lead by promptly exiting the Champions League. They now have the indignity of playing in the euro equivalent of the Milk Cup (Uefa League) a second rate competition with some rather obscure teams. A position that Cameron might well identify with. He’ll take some stern questions on Monday from MP’s over why he elected to demote the UK from Europe’s elite with little sight or chance of ever playing in the Euro champions league of politics ever again.
The week was dominated by ‘big friday’ and whilst the accord on a ‘euro fiscal agreement’ was reached the answer to the crisis is years away. The sooner the markets realise this – the better. The volatility and nervous swings suggest the market is still treading on hot coals. The sooner it calms down and sees the ‘long’ game the better. It will take time – but history shows that after every recession – there’s a bounce back and return to growth.
In the week ahead, the US will be keenly watched as the Federal Reserve’s policy setting committee, the FOMC, meets on Tuesday. The last quarter was better for the US so any signs of QE3 speak is unlikely – but when the next meet in January, they may announce some extra spice to keep growth on an upward curve.
The FTSE 100 did well to sustain most of last weeks massive rise, losing just 23pts on the week to close at 5529. At 370pts down for the year – it has a blue finish within its grasp but it looks a tall order.
The Dow closed at 12,184 bring its two week performance to over 1ooopts. It’s firmly in the blue for 2011 (miraculously) yet some 600pts+ off it’s yearly highs. Both indices are known for putting in good december rallies and 2011 is proving no different. Question is… is there more to come or have we had the santa rally already? Much depends on the Euro theme which seems to have crucial pivotal meetings at least once a week.
A virtual portfolio has been set up using the 2010 Dec 31st close figures as a starting point and £1000 has been invested in each stock. This does not include buying fees or stamp duty and is purely intended to be used as a benchmark or summary for each week. The B-list (alternative picks) and 2 newspaper top tens for 2011 have been included to help monitor/compare against.
The virtual portfolio’s use the ‘last trade’ system to calculate the days close.
Week 49 performance summary as follows:
Worst weekly performer goes to The independent. I don’t think the list has too much to worry about – it looks nailed on to win the 2011 race. But will it be a blue finish or a modest red one? Considering the steady progress by the FTSE100 most equities were again slow to follow. In a sluggish week for stocks, fatigue and end of year volumes seemed to show through the strongest.
1. The Independent -4.15% (loss of 3.10% from week 48)
2. Tempus Times -13.63% (loss of 1.27% from week 48)
3. The ‘B’ List -43.40% (lossof 1.80% from week 48)
4. The 2011 Hotlist -46.03% (loss of 2.71% from week 48)