European markets remain buoyant, not just because of low yields but it seems that finally economic activity and confidence are ticking up from the lows.

Lex Van Dam

Categorized in : Company News

This Brexit decision has taken the markets by total surprise. I would remain on the sidelines - no reason to step in yet.

Brexit is becoming a lot more likely than initially expected and the market is indeed becoming more fearful. It is very much a binary event and until then, buying dips and selling rallies seems the sensible idea.

Markets are doing remarkably well given that a U.S. interest rate rise might happen as early as next month.

Rates are not going anywhere, so buying any dips on the stock market might still be the best strategy.

There is a lot of short selling going on as credit spreads on the metals and mining companies have blown out so much recently, the whole sector has got some support from some stability in mining prices, but the share price rally doesn't look sustainable unless we see major cuts on the supply side.

The market is very nervous at the moment and this is giving some good opportunities to buy selective high quality companies with strong balance sheets at reasonable prices.

Draghi's comments mean continuous support for equities from the E... by Lex Van Dam

Draghi's comments mean continuous support for equities from the ECB.

Finally some good news out of Germany, with the utilities RWE and E.ON leading the way. I am quite constructive on the market.

Cash generation is a key indicator that I always look at before I invest. Companies with high free cash flow yields will be coming increasingly into focus as they are typically well placed to weather downside volatility.

The unrelenting rally in European shares continues, helped by the weak euro and improving economic data. There is no reason right now to lighten up and I continue to be a buyer.