Research Report: Q2 2017 Investment Themes

Q2 2017 Investment Themes

Q2 2017 Investment Themes

As previously outlined, 2017 is the Chinese year of the chicken and whether this will come home to roost? Further US interest rate hikes, inflation expectations, consumer confidence, exchange rate/currency volatility, Chinese growth/economic rebalancing, outlook for commodity prices, notwithstanding the initial impact of US President Donald Trump, UK Brexit trigger plus elections in France and Germany are all likely to continue to dominate stock market sentiment during this year. Given these factors and consequently the potential for increased market volatility and activity, we will again review stock ideas on a quarterly basis. Q1 performance of the stock list saw an average price gain of +9.01% compared to the FTSE All Share Index of +2.53% led by Somero and Watkin Jones with RPC the laggard. Q2 sees some additions and deletions to the original Q1 list with Legal & General, Xafinity, 4imprint and Dotdigital (new) and Informa, Countryside Properties and Zoopla/ZPG dropped.