We became increasingly cautious on the UK and US markets in October. Although NVIDIA [NASDAQ:NVDA] put out another set of racy results this week (19 November), many traders, hedge fund manager Michael Burry included, are obviously seeing a big correction in the Mag 7 stocks - the question is, when will this happen?
In the UK the upcoming Autumn Budget, coupled with negative economic numbers, means that global investors have to take a cautious stance on British stocks. Rumours continue to swirl that Rachel Reeves will have a sting in the tail for banks next week, for example, and the property sector is also running scared.
- Gilts market back in focus as Chancellor Reeves faces tough questions
- Why a rise in UK dividend tax will discourage smaller investors
- Week Ahead: The Budget of low expectations
This has forced us to be a little more tactical in our thinking in October (and November). We continue to be bullish on Japan in the wake of the new government under Sanae Takaichi. We also like the mining sector, which has plenty of room for growth, and in particular gold, silver, copper, tin and rare earth metals are stories worth following here.
A quick shout out on some recent success stories among our existing picks. Riverstone Energy [LON:RSE] entered October trading at just under 600p and is now at 724p. The closed-ended investment company sold 100% of its interest in Onyx Power to ResInvest Group on 21 October. Riverstone is now in managed wind-down, however, with a compulsory redemption of shares process in place, so we are removing it from the tip list as of today. Take your profits.
Airtel Africa [LON:AAF] has also been a big winner for us - we bought into the shares at 109.60. They were trading at just over 300p as of 21 November. It remains one of the best performers in the FTSE 100 in 2025. We continue to rate this position highly as the company is heavily exposed to the strong African telecoms infrastructure story, which we don't see abating. The shares will still tend to get whipsawed by misplaced sentiment in the FTSE 100, but that goes with the territory.
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