L&GI's Penny: My small but mighty UK stocks


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 ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Investment

Only one IPO on AIM in Q2 2022

UK AIM IPOs fall to lowest levels since 2009

Worst quarter since financial crisis

clock 29 June 2022 • 3 min read
Small-caps look to “boost their future cash surplus” during recession.

Miton's Gervais Williams: Recession may favour 'immature businesses'

FTSE Small Cap down 15% year-to-date

clock 29 June 2022 • 2 min read
Daryl Liew, CIO at REYL Singapore.

REYL's Liew eyes return to overweight positions in Asian quality growth names

'It's a question of timing'

clock 28 June 2022 • 3 min read