A strong start to the year for TheShareHub 2019 picks. Further good news from Amerisur Resources helped the picks get off on a positive note. With news due from majority of the picks, catalysts should be coming thick and fast. Premier Oil are heading towards Target Depth on their second Zama well in Mexico. PetroMatad are due to update the market on 2019 plans on Friday Jan 11th. Columbus Energy are long overdue an update on production and forward plan. And Petra Diamonds have set Jan 28th as their trading update. January certainly looks like being a busy month.
Across the markets, Global risks remain with China/US trade talks kicking off on Jan 7th and North Korea Nuclear discussions ongoing. And there’s the big Brexit deal vote set for January 15th. Although the ways things are going there could be several reinventions of this vote if it doesn’t go the PM’s way. By this I mean, a no vote would lead to … well, apart from some mini chaos, probably a revised deal and then another vote. You can see how this can trundle along for another few weeks before all concerned kick the can down the road and extend March 29th deadline to June 30th. Afterall, what’s another 3 months? And another 3 months after that and so on. That’s how the last 2 years has been managed by the UK gov and EU partners. None really want this and most would prefer a second referendum. But after seeing how childish and arrogant the EU have been, I have a feeling that a second referendum will deliver the same outcome. And after that, there’s absolutely no way back for all involved… which is probably why it is being avoided right now.
What does this mean for global markets and equities? Well, it’s likely to be a bt like 2018. Choppy and unpredictable especially with slowing growth thrown into the mix. Will there be a huge sell off? I don’t think markets are ready for another crash. Banks still look fragile, QE is being withdrawn at a time when most are suggesting it should be retained or even raised. At the end of the day, it all comes down to the Algo’s and bots. And that’s the worry. The market has become saturated with these algo’s and one of these days, it’s going to go terribly wrong. But don’t worry, there’s an Algo out there already prepared for that.
One sector that may do well from a weakening dollar would of course be commodities. Miners and O&G stocks could at last see signs of another bull run. Seems at odds with a slowing global economy, but it’s almost a decade since QE kicked off and risk off trading commenced. Easy money was made so risky commodity stocks became ignored. But as QE dries up and the broader blue chip indices begin to let off some steam, Commodity stocks (many of which are just off all time lows) could be back in favour. OPEC are showing signs that they will support the Oil Price regardless of Global issues. Many investment funds are beginning to look to solid metals as a safety zone. Gold has risen from 1150 to test 1300 levels recently. If markets wobble further, Gold could hit 1400 before the year is out.
Lots of if’s and but’s. But in this market it’s impossible to be 100% sure of anything. So be prepared in 2019 for all eventualities. Keep on your toes, spread risk and always invest sums that you can afford to lose. Do not over leverage. Be smart and do thorough research. Be patient. There’s always next year and the year after. Sometimes the best investment is no investment at all.
For those that are new to TheShareHub Hotlist picks. The idea is simple. You take £10k and invest it in more than 6 stocks. Ideally 10. You then leave them to do their thing over 12 months and tally up the net gain. Two Newspaper top pick 2019 lists go head to head with TheShareHub top picks in an effort to win the Hotlist cup. Gains from Dividends are excluded and stocks are not traded. The stocks are set in stone for 12 months and that’s that. This is not necessarily the best strategy in a volatile market and should not be followed verbatim. If you invest in TheShareHub picks, then you should manage risk accordingly to suit your personal situation. See risk warnings in side panel.
During the year, other stock tips are provided via ‘heads up’ posts. Some turn out well and others fail. So all require thorough research and investigation by your good selves. Best of luck to all investors in 2019. If you want to sign up for post notifications direct to your email inbox then please subscribe via the sidebar. Check spam folders for verification/confirmation emails.
Week 1 Status:
TheShareHub (2018 Hotlist cup holder) zooms into an early lead with a 5.6% gain. The Guardan picks begin where they left off in 2018 … in the red and the new boys ‘The Independent’ are up and running with a small gain via their whopping 12 x picks. That said, one bright spark added Randgold Resources which as many know have merged with Barrick Gold, now listed on the NYSE/TSX listing. So that single line stock will need to be adjusted.