Last week was a real rollercoaster for my self-invested personal pension (SIPP). It bounced back from the losses it suffered in January, and now I'm crossing my fingers for more good vibes in the coming weeks.
Predicting the stock market is like trying to catch a slippery fish. The FTSE 100 has been playing a game of two steps forward, one step back lately. That's just the life of an investor – always a bit of a dance.
I have a hunch that a bull run is on the horizon, especially with the talk of the Bank of England cutting interest rates. The optimistic folks in the market are hoping for May, but I'm leaning towards June. Time will spill the beans.
Feeling quite optimistic today, hoping this positive energy will inject some life into the stocks. But, of course, we'll have to wait and watch. For now, I'm relishing the bounce from last week and contemplating which stocks might lead the recovery charge.
The FTSE 100 is stocked with financial gems that are currently on sale. Barclays, NatWest, and Lloyds Banking Group could soar if the bull run kicks off. I'm particularly invested in Lloyds, so fingers crossed.
Lower interest rates might cramp the style of banks a bit, but they could also ease loan impairments. Cheaper borrowing costs may even breathe life back into the property market and mortgage lending.
Companies like M&G and Schroders tend to shine when the market is on the upswing. I've got my eye on M&G, enjoying its hefty 8.75% yield while waiting for its share price to climb higher.
As economic spirits lift, cyclically-inclined stocks like FTSE 100 miners should follow suit. They've been taking a hit due to the struggles of the Chinese economy. Glencore and Anglo American showed signs of waking up last week, rising 3.77% and 5.85%, respectively. When the bull market charges in, I expect them to join the party. But, hey, no guarantees in this game.
Even the downtrodden retail stocks might catch a break. Burberry Group, a luxury fashion firm, is on my radar after its recent tumble. I wanted to snatch it up last week, but my pockets were feeling a bit light. Now it's up 5.85%, and I'm kicking myself.
I've got my sights on a potential recovery player too – Rentokil Initial. Last October, its share price took a 30% nosedive after a warning about a slowdown in North American operations. Despite the hiccup, its European and emerging markets operations were holding steady. I hesitated to jump in at the time due to cash constraints and the slightly steep valuation at almost 20 times earnings. Its outlook seems sunnier now as the US economy stays strong, and the stock leaped 7.89% last week. It's still down 16.12% over the past year, presenting an opportunity I'm considering.