Week 23 of 2012.
A skeleton review (lite version) of week 23 from a very sunny but fresh Johannesburg. Whilst most of the talk at present out here is all about the Rugby, the Markets and the Global recovery woes are firmly in everyone’s minds.
With Greek election set for June 17th the markets tip toed their way through another week with some decent gains notched up. The Ftse has jumped 4%+ since hitting lows at the start of the month.
Hopes of QE3 gain momentum and the Eurozone continue to keep bailing buckets of water out of their hole ridden vessel. Some think the boat might stay afloat if it had less ‘weight’ on its bow. Others fear that any ‘exit’ for Greece could tip the balance and capsize the entire vessel. But as seen already with Spain – there are many troubled countries in the same boat and many dwarf Greece in terms of ‘knock on effects’.
Whilst widespread uncertainty remains – there is little to encourage an Equities rebound. But QE3 certainly would get the ball rolling in the right direction. It’s not likely to come until Europe and Greece confirm their ‘union’. The greek people have a lot to think about and a big decision to make over the coming days.
Week 23 stock picks summary:
Whilst the main indexes seem to be bouncing back – the lack of progress by many E&P’s suggests ‘risk on’ trading is still some weeks away. Until the Greek news is known – investors are simply opting for the safety of cash. Low volume across the markets suggests that there’s plenty of cash waiting in the wings so perhaps when the big bounce comes it could be thick and fast. Whether that is next week or in September (eg; Sell in may and return in September mantra) QE3 will be the ultimate driver.
Current standings / Week 22 Results
The Independent continues to lead the lists with the Tempus Times in second spot. The Hotlist has moved back into the blue after a better week and whilst the B-list notched up a blue week, it wasn’t enough to pull the list back out of the red.
Thesharehub list year to date results (week gain in brackets) are as follows:
The 2012 Hotlist +3.39% (weekly gain of 3.75%)
The ‘B’ List 2012 -2.45% (weekly gain of 1.29%)