Julie Dean: Sell Mining Stocks the Rally is Over

Sanditon UK equity fund manager Julie Dean says investors should take profits from the 2016 stock winners and prepare for a market correction

Emma Wall 12 January, 2017 | 11:12AM

The FTSE 100 has broken through the 7,300 mark for the first time, uplifted by weak sterling and positive Christmas sales figures for the retail sector. But investors in UK stocks should think about taking profits, according to Sanditon UK fund manager Julie Dean – as there may be a significant market correction coming.

Dean, formerly of Cazenove where she ran UK equity funds for a decade, is not pessimistic about the outcome for UK shareholders, but she does say that the rally is over for certain sectors; particularly those that performed so well in 2016.

“We were ahead of the pack in calling the oil rally, but we no longer think commodity stocks have much upside,” she said. “It is difficult to see how mining stocks could return this year the same levels as in 2016 as the starting position is not as low. We have taken gains and are underweight commodity stocks now, although we still have a position in small and mid-sized oil producers such as Premier Oil (PMO).”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BT Group PLC98.84 GBX-1.55
Premier Oil PLC14.11 GBX-1.40
Unilever PLC4,802.00 GBX-1.32
Vodafone Group PLC109.16 GBX-0.18

About Author

Emma Wall  is former Senior International Editor for Morningstar

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