April - June 2018

2^nd QTR Outlook

China

The return of an old friend

The Secondary Market

2^nd Quarter Outlook

As we talked about at the start of the year we were confident that positive sentiments would see a steady start to the year…

STOCKS TO ADD TO THEIR GAINS

We feel stocks will gain in the 2^nd quarter and add to healthy 1^st quarter returns. For the US we feel the NASDAQ will remain strong throughout the quarter. We do see oil possibly entering a bear market that may weigh on Energy stocks.

A major indicator of where we will lie at the end of the quarter will be down to putting an end to the crippling earnings recession we have seen over the past 2 years, if an end can be put to this we can see major gains.

Looking ahead we have a major election in Europe in France where the result will result in either a surge higher or a major sell-off that will ripple around the globe. In the US as seems to be the ongoing trend, political uncertainty can lead to volatility, from the repeal and replace of the Affordable Care Act. And the ongoing investigation into Russia’s part they had to play in the 2017 election. Time will tell as to whether his administration has the political capital to achieve the sweeping reforms necessary to spur economic growth and accelerate the recovery in corporate earnings.

China

As you know Chinese companies are of great interest to us, albeit ones that are Dual listed on the Hang Seng in H-Shares, but mainland China and A-shares are set for a less volatile and more productive 2018.

In 2018 Q1, the Mainland China stock market grew steadily on the back of a stabilizing economy and improved market sentiment. Continuing the momentum from 2017 Q4, the A-share IPO market remained active with both the number of listings and the amount of funds raised one of the highest in recent years.

In the first quarter of 2018, China introduced a range of tax reduction measures to facilitate the development of the Chinese economy. Further planned tax reduction measures are due to be released mid-April, here are some of the measures:

(i). Reduction of VAT brackets for general VAT taxpayers from four to three;

(ii). Increase to research and development expense super deduction for science and technology-related small and medium enterprises;

(iii). Preferential tax treatment for premiums paid to eligible commercial health insurance providers shall be applied on a nationwide basis.

These tax reduction measures may expect to further drive growth and innovation.

The Return of an Old Friend

As I mentioned GBB are looking East this year as we will have allocations of a dear friend in equity, this will be the 4^th Tranche in the last 4 years.  Allocations of a company based in Shanghai and trading on 4 exchanges will be becoming available to our existing database of buyers.  Our buyers will be notified by their Equity Advisor, for enquiries please contact us through our Contact Us Page.

The Secondary Market

In the last few years, we have seen an upturn in companies and private investors looking for off-market options to move equities.

The beauty of the secondary market is that when a corporation, fund, trust or bank own large amounts of stock spread over various investment vehicles, there comes the time to want to cash in on profit but also the necessity due to certain statutes of limitation to have to cash in on profit or loss.  Using the open market runs the risk of adversely affecting the market price if large amounts of stock are traded, especially if the selling entity owns more of the particular stock spread over different investment vehicles.

This is where Global Business Brokers come in and facilitate.

We also have many private clients that at some stage need liquidity from certain individual positions and have various reasons for using Global Business Brokers and not dealing with high street brokerages, we are able to facilitate this by offering positions to our equity buyers and also to new prospective clients.

The secondary market is thriving and as our client base grows so does Global Business Brokers reputation for being a reliable source to sell quickly.

Our model revolves around the fact that we are able to buy ‘Publicly traded stock in a private capacity’

_________