14 April 2022

Welcome to another edition of Stockfox’s share market newsletter.

Market summary

Have the markets been through a ‘bear market bounce’? Certainly, there has been a strong recovery in share prices in March, as shown by the Dow Jones Industrial Average index graph below, and some people believe this could be the start of a new upturn in global share prices.

However, so far in April the markets have been weak again and, unless there is a swift turn around, there appears to be a dangerous pattern developing of regular recoveries that do not reach the previous high and low points that are weaker than the previous dip. In other words, the recent upturn may have been a temporary bounce rather than a sustained recovery.

Given that companies are experiencing issues with supply chain interruptions, rampant inflation and geopolitical problems in Europe and Asia, it seems more likely than not we are facing weak markets rather than strong ones. We still believe that 34,000 is a key support line for the Dow, so we encourage investors to exercise caution if the index falls below that level again.

Tip of the Week

This week’s tip of the week is for a NASDAQ-listed retailer of brand name merchandise. As a discount retailer, the company is well placed to benefit from inflationary pressures.

See the tip here.

We have issued three ‘close’ (sell) tips so far this week. Of them, both Tourism Holdings and Neurocrine Biosciences have had strong starts to the year, allowing investors to take profits. Supply chain issues have affected Adairs, leading us to recommend selling the stock to limit any further loss.

Top Tips

Stockfox tips are categorised by level of risk, with the three levels being low, medium and high.

Here are two of our best performing low risk companies over the past three months, plus one where we didn’t get it quite right but issued a stop loss recommendation to help investors mitigate the impact of the price reduction.

See the performance of all tips here.

NB: These are examples of just some of Stockfox trading recommendations. They are not a reflection of the success of all Stockfox tips, nor are they necessarily an indication of the success of any future Stockfox tips. If you act on our advice, there is no guarantee as to the repayment of your investment or any particular rate of return.