Good morning, it's Paul & Graham here!
It's striking how nearly all the updates today are "in line" - see our agenda below. EDIT - also interesting how it seems almost a lottery as to whether things surge strongly on in line updates (as we see today from Treatt (LON:TET) ) or in other cases, nothing happens, or they even fall on in line updates. The market isn't being rational at the moment, I think because there still seems forced/sentiment selling in some shares, but not others. So if you're trying to make sense of share price movements, don't bother, they often don't make sense right now! It's just supply and demand, driven by all sorts of factors.
I wonder if we are now seeing the capitulation phase of this bear market, with people just giving up and selling in despair? It feels a bit like that doesn't it? You won't find any despair from me or Graham, with such attractive value on offer. Equity investors have to be resilient, and accept that the market quite often takes fright, and experiences big falls. It always recovers though, that's the thing to remember. If you're holding good quality shares with no gearing (both at the companies, and in your portfolio) then we can ride out patches like this, and probably catch one or two takeover bids too. So it's not all doom and gloom by any means.
Some might argue that we need to take some pain now, as a necessary precursor to central banks reducing interest rates in future. As mentioned in my last podcast, I think political pressure is likely to build on central banks to loosen, especially as inflation is now coming down, as supply problems ease, and elections loom. One thing is certain though - nobody knows what will happen, and it will probably surprise everyone, as events of the last year have demonstrated! So the fewer predictions, the better - especially when they're forcefully expressed with total certainty - a sure sign that the commentator is clueless!
Graham Youtube show today (starts 11:30, but recorded) is covering Reach, Impax, and maybe Treatt.
Explanatory notes -
A quick reminder that we don’t recommend any stocks. We aim to review trading updates & results of the day and offer our opinions on them as possible candidates for further research if they…
