fbpx

Bottom of the market bargains

How to spot when the FTSE is bottoming out: Now could be the perfect time to pick up a bargain

By ANNE ASHWORTH FOR THE DAILY MAIL

PUBLISHED: 21:51, 17 April 2020 | UPDATED: 22:16, 17 April 2020

Uncertainty may be the new normal. But no matter how often we hear this mantra, investors would still like to know whether share prices are close to their lows, or if there is worse to come. The answer is: it’s complicated…

Views differ as to whether it will be shaped like a V – a sharp descent, followed by a rapid revival; a U – a longer downturn, or a W – a bounce back before another dip…

In fact, rather than obsessing about the Footsie’s ups and downs, it may be more important to keep an eye on signals of market sentiment. These include the copper/gold ratio, which slides when fear is great and rises when hope is dawning…

This may not turn out to be the bottom of the market, but it could be a reasonable moment to buy, for investors who can afford to be patient. Attention is already turning to the shares and funds that may have been unfairly beaten-up…

James Carthew of QuotedData highlights investment trusts such as CQS Natural Resources Growth & Income, whose prices have tumbled by almost a third since January, despite its stakes in gold mining companies.

Other bargain-priced investment trusts for those prepared to take a risk are BlackRock Latin American Income and Jupiter Emerging and Frontier Income. Ben Yearsley of Shore Financial Planning points out that the price of Finsbury Growth & Income has fallen by 13 per cent, although one of its holdings is Unilever, maker of Dove soap and Domestos.

Read more here

NULL