The full impact of downward pressure on FTSE stocks is still yet to be felt, says L&GI's Richard Penny, as he highlights the stocks which can buck the bad news.
Last year there were big falls in oil and iron ore prices, and companies exposed to these sectors make up 25% of the FTSE 100 index. This has produced a sharp reduction in short-term earnings prospects for the UK market, and the full impact of these downward pressures is yet to be felt. Time to rush in? The last time prices fell in such a way, many funds made heroic gains in the subsequent rally, although it still seems too early to dive into the resource sectors. This is because the marginal cost of production for oil is much lower than the total cost, including exploration ...
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