Hobson Urges Investor Caution Over Retail Stocks

THE WEEK: Morningstar columnist Rodney Hobson urges investors not to make hasty decisions - or you could get caught out like those trading Next this week did

Rodney Hobson 5 January, 2018 | 3:24PM

Shoppers on Oxford Street in London

Let’s start with a New Year resolution for long term investors. While day traders must seize the moment if they want to make a quick buck, those with a longer-term horizon should resolve to look before they leap. Better to let a chance go and search for the many opportunities that lie elsewhere than to make a hasty investment decision and repent at leisure.

That message was flagged up when Next (NXT) was the first retailer to report on Christmas trading and it was a better than expected update. Some investors mistakenly thought that “better than expected” is the same as “pretty good” and the shares leapt from £45 to £49 at the opening.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Marks & Spencer Group PLC96.76 GBX-1.67
Next PLC4,838.11 GBX-0.25

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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