Market Commentary May 2014

Please find this month’s Market Commentary newsletter which contains our view on the stock market based upon fundamental and technical analysis along with some recommended investments for the current market.

Last month we advised investors “the market has unwound its overbought levels and we see a lot of value, particularly at a stock-specific level…further inflows into equities are supporting our constructive view on the stock market along with rising bond yields, which are important for the sustainability of the positive outlook”.

The market subsequently rose 182 points (2.76%). Our only recommendation was William Hill, which rose 5.7% (including the 7.9p dividend) to 354.7p. The market is still bullish with BNP Paribas yesterday recommending their clients buy the stock on valuation grounds. Numis is particularly bullish with a 500p price target.