Abstracts » Business

Mixed ability, but double the index

Article Abstract:

Ten shares selected by Investors Chronicle performed better than the FTSE All-Share index, with capital growth averaging 22%. The best performer was Cairn Energy which ranked eighth among the best performing UK shares in 1996. The company benefited from good test results in gas fields in Bangladesh. Airtours ranked second in the portfolio despite problems facing the UK travel industry. Wescol ranked third and has been successful with its patented cellular steel beam. Abacus Polar, an electronics distributor, was the worst performer in the portfolio and was affected by a sharp drop in semiconductor prices.

Evaluation, Securities

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And the last shall be last

Article Abstract:

There are a number of anomalies which can offer opportunities, but this does not mean that investors can gain good returns by buying shares that have performed badly. A survey of share performance since 1988 shows that it is better to invest in shares that are performing well. This could be seen as evidence that markets are efficient, but it does not explain the long-term underperformance of shares in the construction industry and the patterns to be seen in oil exploration and real estate share prices.

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Recalling the last bear market

Article Abstract:

The United Kingdom stock exchange was hot by a bear market from 1972 to 1974. There was financial, industrial and political disruption in the UK at that time. A fear that banks could become insolvent due to depreciation of real estate, bond and stock portfolios led to a further drop in stock prices in Nov 1974. The view that such bear markets are not likely to reappear could be over-optimistic, especially given the post-1989 performance of the Japanese stock market.

Bear market

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