GDP Growth at Last, Risking AIM Stocks and Thomas Cook It

THE WEEK: Morningstar columnist Rodney Hobson discusses Mervyn King's latest forecasts for the UK economy, seeking growth and income from AIM stocks and the turnaround at Thomas Cook Group

Rodney Hobson 17 May, 2013 | 12:39PM
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You wouldn’t think it to see Sir Mervyn King’s deadpan, almost somnolent, public performances but this is a man of unbridled optimism whose forecasts should be treated with suspicion. Nonetheless, his final pronouncement is on the right track. For once, he should be believed.

The Governor of the Bank of England believes that recovery is now underway, with a projection of 0.5% growth in the second quarter to follow the 0.3% achieved in the first three months of 2013. We are still only half way through the latest quarter so it is early days, but King will have some indications of how the economy fared in April.

He is sensibly more obscure about what happens after that, settling for growth to be ‘a little stronger’ than he expected three months ago but with the economy ‘likely to remain weak by historical standards’.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASOS PLC3,265.00 GBX-2.39Rating
BAE Systems PLC561.80 GBX0.25Rating
BHP Group PLC1,867.80 GBX-1.27Rating
British Land Co PLC501.20 GBX-2.03
Centrica PLC54.02 GBX-1.24Rating
CRH PLC3,650.00 GBX-0.82Rating
HSBC Holdings PLC375.45 GBX-0.37Rating
James Halstead PLC546.00 GBX0.00
Legal & General Group PLC278.70 GBX-1.66
Marks & Spencer Group PLC187.15 GBX-0.64Rating
Naked Wines PLC741.00 GBX0.54
National Grid PLC919.40 GBX-1.66Rating
Sainsbury (J) PLC295.50 GBX-0.14Rating

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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