The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I'm nearer your risier view gspanner and I dont see any reason to give up yet on my original SP guess of 15p year end but I do feel like realistically it looks less likely in the current climate but once the US is opened up and bond yields handled we could really move up very quickly as by then a grew more projects may well be jam on out toast and not still in the supermarket, if ya get me.
The SP troubles are of course effected by any large persistent seller but as you say "why are we still not rising regardless with such good news and prospects?" (kinda what you asked).
Well I'm going to say this again and I'll explain more this time my opinion - it's bond yields rising through fear of the inevitable surge in inflation that's coming and institutional investors and economists are mostly agreed on this as far as I'm concerneand and so they also know that the Fed won't act to stop it for a while until the economies are back on track even at the short term cost of damaging equity markets overall. In the meantime these institutional investors and some PI's too are taking profits and shifting funds out of equities generally but especially the badly effected growth stocks (hello Eqtec and many other great growth stocks) and shifting them into safer bonds and into cyclicals and commodities too.
It's encouraging to see the yield rate come down from 1.75(ish) to 1.6% but the underlying problem is going to get worse unfortunately before it gets better so any rises are short lived.
This will only get better after the central banks have created enough liquidity to get the economies going again, then they will have to deal with the surging inflation they've created to achieve this and this will mean active and aggressive control of the bond yield rates. Then our sector will be back on track and for years : )
This process and the timing of it will be different for differing economies but we all know its the US that calls the shots here as the dollar is the world's currency in many ways still.
Of course the tax year does I'd think effect increased profit taking or shifting funds or delaying buying until in PI's cases they've space in isa's again as is the case for myself but it's tiny I'm arguing compared to the macro massive forces effecting our sector amongst others (hello gold and silver and tech etc).
So that's kinda what's been going on what's coming our way for a while.
But Look, with the growth and inherent increase in value coming Eqtecs way I'm not selling and we may be well on the road to high share price by summer, know one can really know not even DP with the issues going on I've tried here to highlight but by the end of the year I hope all this is already a long way back in our rear view mirror and we're well on the way to growth stock riches and I'm hedging none more so than Eqtec.
Please don't make me explain this again, it's only my opinion but it's also shared by many who are infinitely more knowledgeable than little old me.
I hope this makes sense to some and helps with the justified concerns I often see here and helps them not throw away a truly golden investment opportunity and let's face it this modern world needs Eqtec we just need to wait for more of it to realise this as we do, and they will.
I hope this has helped shed light a bit.
Hi I'm not invested YET but will be soon, I'm hoping the price is still low come new tax year so so I can enter in at a nice price in my isa.
I see people are questioning why the price drop? so I'll add my thoughts that THE major factor of all tech and growth stocks suffering since 2 nd week of Jan has been the rise of the interest rate on the USA 10 year bond. Any company or any market that currently is loss-making and requires allot of capital expenditure to get it into making profits is suffering, this will happen regularly until the Fed changes policy and aggressively suppresses the bond yield price. Unfortunately I don't see this happening until maybe a month or so from now, I like to think it may happen end of April.
If you believe in the future of your stocks then keep them but be prepared for choppy waters until the Fed steps in.
'm holding my growth/tech/energy stocks that I strongly believe in but I know choppy waters are all around..
But it won't last so trust your vision, I think kanabo is a risk worth taking for great rewards to come.
Good luck all don't loose sleep trust your long term view.... Best of luck and I hope to be joining soon.
Phe (I'm invested) is using only non-recyclable plastic and Eqtec is starting off with household mixed waste, no clash in my mind for quite some time if ever.
Plenty to go round imo I'm not concerned but an interresting question non the less.
I'm sure everyone's aware that PHE (I'm also invested) is setting up to use only unrecyclable plastic as foodstock where as Eqtec is going to be taking bags of rubbish, so no competition as I see it.
If course in future there may be some crossover of food stocks but probably not for a good while and there's plenty to go round.
Personally I'm not at all concerned but it was interresting question worth asking.
True enough despite yields rising further this weekend its not spooked the markets yet. Long may it continue but while inflation keeps flying up it will be a constant cloud up there and from time to time it will cause SP problems...
But not enough problems to stop me holding and buying in dips should they happen.
The B yields are up more so expect growth stocks Inc Eqtec to maybe loose some SP unless they come out with good news. Don't panic or overreact as it is only a matter of time before central banks control B yields or they won't be able to pay the interest on their national debts.
Eqtec is a fantastic investment opportunity and it's in the right sector to out perform the markets medium to long term.
Chill and hold steady and with so many good news stories possible here at any time don't risk missing out.
Ciau. GLA
Hi, I wholeheartedly agree with your sentiment Villas I only explain the B yield to try and calm these skittish types and throw some light. I for one will be looking at the bond yields Mon for a second but I absolutely will be holding my Eqtec tickets regardless as its a winner as well you know sir : )
Ciau
Or is it bond yields again??? Answer = yes
Bondyields rise = growth stocks fall
Pretty simple equation.
Obviously other factors are involved but it really does appear to be mainly this effecting price atm.
I am bothered by Henderson constantly dragging us back but if the buys n sells are not excessivly different then what's magnifying the SP changes.
Look up : ). Soz to be cheeky but hey ho it's fun Friday.
Have a good weekend everybody and Google Bondyields Monday morning before trading if you want to know how the tides flowing (with or against or even slack) that day.
GLA