Cut-price consumer bargains will go on sale on Black Friday, when the United States starts its pre-Christmas shopping season. So I wondered whether, after several years of soaring share prices in sectors such as healthcare and technology tipped here frequently, any funds or businesses left behind might still offer investors good value.

In Britain and Europe smaller companies and, at the other end of the size scale, high street banks are among a mixed bag of “bargains for the brave” identified by shrewd observers. …….

…… Another contrarian — or an investor who likes to buy when others sell — is Alan Steel, the founder of the independent financial advice firm of that name. He said: “It’s always a good idea in investment to consider siding with the minority. Time after time, going against the herd has produced the best returns. British banks are very unpopular, with so many pessimists around these days, but the smartest investor I know has put a huge pile of chips on Lloyd’s Bank.

“For more diverse exposure we have stuck with Artemis UK Select. Its manager recently told me he had never seen so many quality British shares so cheap.”

As usual, bargain hunters will have to be quick on their feet. Stock markets are in business to discount the future, not to dwell in the past. ……

Quote courtesy of the Sunday Times
Sunday 22 November 2020

The quote is the personal view of Alan Steel.  Please check the appropriateness to your individual position with your adviser before taking or refraining from any action.