Prospects for equities appear to have brightened considerably since Trump’s election.
But let’s not get carried away.
When it comes to the London stockmarket, sentiment remains fairly brittle.
London is consistently underperforming other major stockmarkets, especially Wall Street.
While the S&P 500 is at or close to a new all-time high, London is way below where it stood in October.
Here’s a snapshot of what was happening on equity markets at time of writing, at just after 3 p.m last Monday:
Wall Street (Dow Jones Industrial Average): +0.5%
Germany (Dax): +1.5%
FTSE 100: +0.1%
This underperformance by London is quite typical.
The reason, we suspect, has to be the uncertainty
over the Brexit negotiations, not to mention the general uncertainty that also exists in Europe at the moment, what with elections, referendums and the state of the European banking system.
That said, the British economy continues to defy the predictions of a post-Brexit collapse.
That is certainly providing support to shares, even if other factors are tending to hold shares back.
But market turmoil can create great trading opportunities, as we’re seeing with our Trendwatch Global Futures product.
Our client account net asset value is up 21.84% before charges in only 14 months since inception to close last Tuesday…
And gains are tax-free for UK investors.