L&GI's Penny: My small but mighty UK stocks

clock

The full impact of downward pressure on FTSE stocks is still yet to be felt, says L&GI's Richard Penny, as he highlights the stocks which can buck the bad news.

Last year there were big falls in oil and iron ore prices, and companies exposed to these sectors make up 25% of the FTSE 100 index. This has produced a sharp reduction in short-term earnings prospects for the UK market, and the full impact of these downward pressures is yet to be felt.  Time to rush in? The last time prices fell in such a way, many funds made heroic gains in the subsequent rally, although it still seems too early to dive into the resource sectors.  This is because the marginal cost of production for oil is much lower than the total cost, including exploration ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Event Voice: Your questions answered by FSSA Investment Managers at the Emerging Markets Conference

Event Voice: Your questions answered by FSSA Investment Managers at the Emerging Markets Conference

Angus Sandison, Investment Analyst, FSSA Investment Managers
clock 24 April 2025 • 3 min read
US M&A spending jumps 50% in March as deal volume declines

US M&A spending jumps 50% in March as deal volume declines

Near 6% drop in number of deals happening

Eve Maddock-Jones
clock 23 April 2025 • 1 min read
Stories of the week: The FCA, Bank of America and Neil Woodford

Stories of the week: The FCA, Bank of America and Neil Woodford

Recession expectations, AI chips and Hargreaves Lansdown: The biggest stories from the world of investment and asset management this week

clock 17 April 2025 • 1 min read
Trustpilot