Sectors that investors might watch for with interest are Mining, as the relentless demand for commodities looks set to continue, and Media, as a further rash of consolidation seems ever more likely.
Mining
Media
Stocks to Watch
Investors looking for specific stocks might like to bear in mind the potential return to fashion of large cap stocks. With this in mind, the market view is BP remains a core holding despite its recent troubles, GlaxoSmithKline has a drug pipeline which still looks promising and RBS, up to now a serial underperformer in share price terms, has merit.
BP
GlaxoSmithKline
RBS
Please remember that investments can fall in value as well as rise, so a long term view is essential. I have offered my views, but please note that this is not personal advice so if you are unsure about the suitability of an investment for your circumstances you should contact our Financial Practitioners for expert advice.
I hope you have found my report useful and please do send details to any of your friends that may be interested to read my views.
You may also find Mark Dampier’s 2007 Report useful. In the report he suggests some fund ideas for the coming year.
Richard J Hunter
Head of UK Equities, Hargreaves Lansdown
Mark Dampier's Report
Mining
Sector to watch
The world’s fastest growing economies, China and India, are showing little sign of their insatiable demand for commodities abating. This underlying demand has resulted in a phenomenal earnings stream for the sector and, despite the volatility of certain mining shares, the potential for future income remains. This cash surplus has led to a raft of extensive share buyback programmes and has facilitated consolidation within the sector. This may yet have further to go. Mining stocks account for nearly 10% of the FTSE 100 by market capitalisation, so the importance of their performance next year will be felt on the wider market.
