Stock Tips & Market Commentary: October 21st 2018: Like A Kid In A Candy Shop

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Hello and welcome to the first ever edition of Live Markets on MoneyBlog. And arguably, there couldn’t be a better time for this. After the last couple of weeks, we find ourselves at a time when the FTSE is in its boots and there are so many cheap deals on the proverbial table that it’s hard to lose on a medium to long term timeline.

After a sell-off like the one we’ve just seen, it’s a great time to buy companies that are in good health – well run businesses with good products and low debt, which operate in a growing market. Companies that there’s nothing ‘wrong’ with, whose now low share prices are a symptom of the market rather than the company’s performance.

This is a great time for new investors to start investing since the chances of loss are so slim. However, it can also be a dangerous time for new investors, because investing after an unusually large fall in the market, can produce an unusually large gain and lead beginning investors to believe that stock market investing is easier than it is.

However, that said, there are a number of stocks I’d currently recommend investors to buy on both the FTSE and the NASDAQ, which are the two main stock exchanges that I focus on.

Before I get into any stock tips I want to make it clear that just because I mention stocks in Live Markets does not mean you should buy them immediately because they’re going to sky rocket the next day. These are just companies and instruments that are on my radar. Evidence suggests they will go my way eventually, but if you’re looking for an instant win, I’m certainly not promising you that.

FTSE 100 Tracker

Some may consider this a bit of a cop out of a choice. But with the FTSE 100 currently oversold, if a newbie investor didn’t want to take a punt on any particular share and wanted a ‘safer’ option, I don’t think you could go far wrong with a FTSE 100 tracker right now. Yes, the gains will be smaller. And yes, it will all take longer, but supposing you don’t have a lot of capital, it’s probably the safest thing to do to virtually guarantee a return.

Standard Chartered

With Brexit not far away and the clowns in parliament still far from a deal, I’ve been making an effort to de-risk my portfolio from the UK economy. It’s simply too uncertain. Standard Chartered is a bank whose services are focussed on emerging markets. 80% of their income comes from Africa, Asia and The Middle East. The shares are also currently trading below book value by quite a long way. They did get into trouble for fraud some time ago and that’s probably the reason for the very poor share price, but I’ll bet that 2-3 years from now, the shares could be trading at £10+, which will make almost 100% profit for anybody who buys now.

BT Group

I picked up BT for this year’s ISA a couple of months ago when the trend reversal pattern first confirmed on the chart. Since then BT has been making solid gains and with a 6+% dividend on top of that, it was a great time to get in. Looking at the longer term chart on BT, I think the recovery has only just begun and there’s still plenty of upside for investors that want to get in now. I don’t think you’ve missed the boat yet.

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