Buy low, sell high, as the expression goes. On Monday this week Sharewatch put the theory to the test by investing 100 imaginary pounds in several construction-related companies at a time when the industry is in a trough.
They included housebuilders, contractors, consultants, architects and supplies companies. Which will bring us more bang for our buck in the next year as the market (hopefully) recovers? Watch this space.
By Tuesday, ahead of its results on Thursday, the imaginary ton we had put on Taylor Wimpey was worth £94. One analyst called it “a weak performer” but warned it could become a “screaming buy” if the valuation dropped too far. Other housebuilders followed a similar pattern.
Groundwork engineer Keller Group was a wiser bet. Following some universally acclaimed results on Monday, our flutter was worth £115 by Tuesday afternoon …