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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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UK Housebuilders- Once-in-a-decade ultra low PEs

August 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Baron Rothschild, the 18th century nobleman and member of the Rothschild banking family who made a fortune buying in the panic that followed the battle of Waterloo, famously said “the time to buy is when blood is on the streets”. His quote is also a useful metaphor for other unexpected “black swan” events such as Brexit, which for those with patient money (2-5 years) could yield fabulous buying opportunities.One sector worth highlighting is housebuilders, which have fallen 30-45% even though they are in far better shape than leading into previous downturns. Any house price correction and unemployment spike would have to be huge to justify these falls, but we think the Bank of England will inject anoth ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X