As wishes of good health are being scribed in Christmas cards all over the globe Graham Spooner, investment adviser at The Share Centre, looks to the pharmaceuticals sector for a stock that will provide stability in your portfolio.
GlaxoSmithKline has attractions for investors looking for a lower degree of risk. After a long period of doing very little the share price has risen by around 9% this year. Income seekers will be attracted to the yield at around 5% and the growth story also looks to be improving.
GlaxoSmithKline has an increasing exposure to the emerging markets and this, along with new products and diversification in consumer healthcare and biotechnology, should see improvements in the next year.
Although generic competition remains a concern, the company thinks the problem has now receded. As pressure on drug prices, especially in European markets, continues moving into other regions is sensible.
A few observations about George Osborne’s autumn statement. Mr Osborne had great fun mocking the idea that in order to reduce borrowing one has to spend more. His comments, when you think about them, don’t really make any sense. Ed Balls probably deserves an Oscar for the look of incredulity on his face when Mr O blamed Labour for the economy’s ills.
In his autumn statement, George Osborne revealed a new Seed Enterprise Investment Scheme (SEIS), designed to encourage investment into private companies by providing quite impressive tax benefits. If this is played right, and the government doesn’t start making the scheme too complicated, this could be a very smart move indeed. It will probably help entrepreneurs, who, in turn, will probably help the economy. This move may be especially interesting to private investors, but I would like to issue a big WARNING, too.
Bull and Bear – an optimistic and pessimistic view of investment news. Today’s stories: Who will be the next Apple? Amazon takes chunk out of Apple’s halo. Or will the rival come from social media? UK Money supply contracts. Sweden sees robust growth. House prices up, no they are not. Companies in the news: Senior, Ophir Energy, Johnson Matthey and Cove Energy
Investec Special Situations fund
There may be an ever so slight whiff of panic emanating from the Chancellor when he delivers his autumn statement today. If George wants to be known as the iron Chancellor who stuck to his plans, even when all around him were losing faith, then his mettle is truly being tested. Today will see him attempt to try to kick some life into the economy without backtracking on his austerity. I kind of like the idea of creating easing, but there is a fundamental flaw.