Rowan Dartington has analysed the sectoral performance of the UK market since Brexit, with the FTSE-100 up by around 15.7% compared with the FTSE-250 rise of 7.3% to last Friday.
“Within that, the mining sector and oil & gas sectors are up by 55% and 31.5% respectively while the bond proxies of utilities and commercial property are down by -14.5% and -9.1%,” says technical investment director Guy Stephens.
“This is a huge reversal compared to the year prior to the Brexit vote.”
With the consensus across the market for another volatile year, Stephens points to scenarios of “rumour and expectation” causing extremes of movement.
Rather than predicting a significant downturn, he believes that those who have missed the rally may get another chance at lower levels if they are patient.
“If I were a speculative investor, selling the Trump rally and buying the Brexit discounts could prove very profitable but would also be very risky as it depends entirely on political outcomes and nothing else,” he says.
