Morning Report Friday 10 October 2014
Remain focused on the individual stock opportunities among this increasing volatility
I feel like I am on a rollercoaster with my son Harry this week! The Dow is swinging 300 points (2%) a night, as the market balances the advantages of lower interest rates for longer against weakening economies as Europe struggles to avoid a deep recession – a drop in exports added fuel to worries that even the mighty Germany is falling into recession. In yesterday morning’s report, I was clearly leaning to a market bottom and a run up into Christmas. After last night, the acceleration down in US equities again, has me very nervous for coming weeks. The best and arguably only way to deal with this excessive volatility is to focus on opportunities presented by individual equities e.g. We bought Flight Centre (FLT) on Wednesday and was up over 2.5% yesterday, of course we have to assume this will be erased today.
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