Some of the headlines from this week (so far) include:
The World Economy Is Stumbling Towards Disaster – Bloomberg
A massive money-laundering scandal stains the image of Nordic banks – Economist
Hong Kong police break down the cost of Sunday’s night of violence – South China Morning Post
Argentine bondholders brace for steep losses – Financial Times
Bercow denies Johnson vote on Brexit deal – The Times
Islamic State Turns to Teen-Friendly TikTok: Jihad With Pink Hearts – WSJ
Doesn’t quite make for happy reading does it?
As we’re all aware, fear sells papers. Or, in today’s online world, fear gets the clicks. You don’t often see good news. You particularly don’t see it in financial mainstream outlets these days.
For that reason it’s hard not to get a little pessimistic about the state of global affairs. When people are gloomy about global finance that often tends to filter down into the local markets.
It can be a self-perpetuating prophecy.
Making change for the future
Gloom and doom abroad, gloom and doom at home. It’s why there’s been an astonishing rise in “passive investing” over the last half-decade. I call it the “tap out” syndrome. It’s when investors just get so pessimistic about the market and they’re fed such gloom, they retract from giving a damn.
Passive investing does haves a place for some people. But from my perspective, passive investing leads to one outcome – mediocrity.
There are graduating scales of what “passive” exactly means. But from my view it’s investors who simply seek to invest in exchange-traded funds (ETFs), or managed funds and take little to no responsibility for investing their money.
Active investing has taken a backseat during the last decade. And passive managers have done squat all but still gone about collecting their management fees.
Also, somehow active investing has got a reputation now of boiler room-style antics and high-frequency day trading from the kitchen table.
It’s a strange and highly inaccurate phenomenon. That’s part of why I’m trying to raise a movement to educate people about personal finance. Too many people are financially illiterate. And in today’s world, that’s just unacceptable.
But it starts early. It should start at primary school. But as kids we’re not taught the basics of finance and then adding layers to that each year as we progress through the education system. We know how to calculate the angles in triangles, but the average person has no idea what fractional banking is or the benefits of investing long term in a stocks and shares ISA.
I want that to change, so I’m launching a petition, Add ‘Personal Finance’ as a statutory subject to the UK National Curriculum on change.org.
Let’s make a change for future generations to live and prosper and not be dependent on the state. You can sign my petition here, and please share it with as many people as you can.
Proof that when you’re active you can win big
Active investing in my book means taking a view and a position in a range of stocks that you choose for yourself to include in your own hand-built portfolio.
Sometimes you might hold those stocks for years to realise their full potential. Or sometimes you might cash out quick if they deliver some short, sharp returns. Either way, “active” investing means giving a damn and taking action where the mainstream person is afraid to.
I think everyone that wants to really stand a chance at making a mint from the markets should be an active investor. Of course getting and consuming all the information needed to make the right calls isn’t easy.
That’s why I’m on my mission to educate generations to come and why I’m working on something big that I’m getting to reveal in a matter of weeks.
I do this because I’m of the view that even in times of widespread gloom and doom there are hundreds of opportunities each year to bank returns the average investor can only dream about.
Also, most of these big wins can be found at home on the London Stock Exchange (LSE). Amidst all the “Brexit noise” it’s easy to forget the UK is one of the most innovative, exciting, potential-packed countries in the world for stockmarket investing.
But of course it’s not easy to see how good the LSE can be when you’re bombarded with fear and uncertainty in the mainstream.
That’s why I’m going to help you out. Below you’ll find a small fraction of the 169 stocks that are up over 50% in the last 12 months.
That’s right, approximately 169 stocks on the LSE have shot up by more than 50% over the last year.
Don’t believe me? Well here’s a list of just a few of the big winners in the last year…
- Agronomics [LSE:ANIC] (AIM) – trading around 3.25p in October 2018. Yesterday’s close, 5.80p – 78% gain (traded at 11p in August a 238% gain).
- Adept4 Plc [LSE:AD4] (AIM) – trading around 0.35p in July 2019. Yesterday’s close, 3.30p – 842% gain.
- IQ-AI [LSE:IQAI] (Main) – trading around 1.20p in June 2019. Yesterday’s close, 6.20p – 416% gain (traded at 11.63p in September an 869% gain).
- MPAC Group [LSE:MPAC] (AIM) – trading around 106.9p in January 2018. Yesterday’s close, 183p – 71% gain (traded at 210.90p in September a 97% gain).
- Nuformix Plc [LSE:NFX] (Main) – trading around 1.97p in February 2019. Yesterday’s close, 8.10p – 311% gain (traded at 13.75p in June a 598% gain).
- AB Dynamics [LSE:ABDP] (AIM) – trading around 1,150 in October 2018. Yesterday’s close, 2,325p – 102% gain.
- Integumen Plc [LSE:SKIN] (AIM) – trading around 0.44p in January 2019. Yesterday’s close, 1.84p – 318% gain.
- Solid State Plc [LSE:SOLI] (AIM) – trading around 289p in December 2018. Yesterday’s close, 491p – 70% gain.
- Blackbird Plc [LSE:BIRD] (AIM) – trading around 5.30p in February 2019. Yesterday’s close, 15.25 – 187% gain.
- Bidstack Group [LSE:BIDS] (AIM) – trading around 4.55p in January 2019. Yesterday’s close, 23.50p – 416% gain (traded at 37.50 in June a 724% gain).
- ReNeuron Group [LSE:RENE] (AIM) – trading around 50p in February 2019. Yesterday’s close, 136p – 172% gain (traded at 325p in April a 550% gain).
- IndigoVision [LSE:IND] (AIM) – trading around 111p in October 2019. Yesterday’s close, 191p – 72% gain (traded at 230p just a few weeks ago a 107% gain).
Now remember these are just some of the 169 stocks that in the last year have seen their 52-week percentage change greater than 50%. And as you’ll note the threshold is 50% but most of these are over 100% and a few multiple times more than that as well.
It’s right there, right in front of you
You’ll notice above I’ve added “AIM” or “Main” after these.
That’s because there’s the main market of the LSE, but there’s also a “sub-market” known as AIM. It used to be called the Alternative Investment Market, but now it’s just AIM.
And you’ll also notice the stocks above are heavily weighted to AIM stocks.
As of September 2019 there are 882 companies on the AIM. Above I’ve shown you just ten. There are loads more. And as you can see, there’s plenty on the main LSE market too. In fact as I’ve said a few times now, around 169 of them have delivered over 50% gains in the last year.
As of September 2019 there are 2,085 stocks on the LSE (including those on the AIM). That means around 8.1% are absolutely shooting the lights out for investors taking an active role in their portfolios.
That number might not sound massive. But it’s huge. Amidst all the doom and gloom, that might surprise a few people. After all when you listen to the mainstream you might think it’s the worst time ever to invest.
But if you change my search parameters a little and look for stocks on the LSE that have made more than 10% in the last year, that number skyrockets. There are 850 companies that are up more than 10% in the last year.
That’s incredible – 40% of companies on the LSE and AIM have gained in the last 12 months. Why aren’t investors taking a more active approach? I think it’s just because they don’t know how or where to look.
I want to change that. I’m going to change that. It’s time UK investors took notice of the opportunities on the LSE and AIM sub-market. Investing the right way in the right stocks can set you up for life.
I’ll be working on a project that you are going to hear about very soon. It’s something that will stop people just dreaming about this sort of thing and finally aim to make it a reality.
All you have to do is get more engaged with the opportunity and potential that’s around you every day, and don’t buy into the mainstream propaganda.
Editor, Southbank Investment Research