From a 1700’s Cockney rhyme: half a pound of tuppenny rice, half a pound of treacle, that’s the way the money goes, pop! goes the weasel!

With the markets propped by central banks QE programmes, especially the US Federal Reserve, are we going to lose our shirts (or weasle and flutes – suits) when it’s finally withdrawn or not?

Here’s a thought or two with Mustard Man and Little Deal Clincher on what’s interesting us in view of the skittishness of the markets after their falls from record highs earlier this week…

Hi Mustard Man,

Pop goes the weasle! Time to run for cover or just a chance for laggards to jump in and more profit for the early buyers… let’s see what this week brings for an answer. Mind you big Ben speaks and China sneezes then everyone else catches a cold? Any thoughts on buying the dip? In the UK the IMF report suggests infrastructure projects would help recovery – how do you fancy those listed construction/facilities management companies. The yields are not bad while you wait. Mind you they’re volatile and prone to going bust.

LDC

 

Hi LDC,

China are the ones driving the recovery as the rest of the BRIC’s seem to falling by the way side. As per my earlier email I thought UK utilities looked attractive and with take over talks abound the prices have jumped.

I think that House builders are in a good space at the minute with cheaper land prices, low interest rates, big demand for new houses and unemployment stable. This is an area I am looking with the large cap homebuilders catching my eye. I’ve followed the story with Vodafone and the deal with Verizon could prove very profitable to them. I’ve had a rethink about mining as demand for raw materials is not as strong as I would have thought and there is a good deal of supply in the market. However, food prices are set to go up again this year as last year’s poor harvest will have a knock on effect this year – The cost of potatoes in the UK has more than doubled in the last month!

Mustard Man

 

LDC disclaimer – this is not to be taken as advice to buy anything. It’s just a view between two experienced private investors. Builders are very risky investments and often go bust. Food and Utility companies need to be researched and advise taken from an FCA registered advisor/broker. The Vodafone/Verizon deal is in no way guaranteed and may never happen.