Unsurprisingly, following the worst week for global stock markets since 2008, there aren’t many companies scoring well on our momentum screens. Monday morning saw the FTSE 100 regain some ground, then hand it back with interest, and investors should expect further twists and more volatility.
- Businesses that still score reasonably well such as protective rubber specialist Avon Rubber (AVON), and software holding company AVEVA (AVV) do represent an opportunity to buy quality at a more reasonable price. Investors should be careful buying on the dips, as it’s difficult to call when a bottom has been reached, but a system like pound or value cost averaging can help drip feed money into markets like these.
- Smaller companies that do well both on the All Share screen and using the slightly different set of rules we use for the FTSE All Small Companies index, include Avon and businesses like spread better CMC Markets (CMCX) – a company that makes its money from people trading volatile markets.
- Another Holding company for IT software – CentralNic (CNIC) - tops our Aim screen.
