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Opto’s top five trading articles of 2020
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Opto’s top five trading articles of 2020

This has been a year unlike any other. For once, the term “unprecedented” has been an accurate description, for the most part. The coronavirus pandemic sparked a global market crash, which quickly reversed for many stocks and saw them skyrocket.

A monster rally saw tech giants march upward in locked step with relative work-from-home stocks and semiconductor suppliers, while electric vehicle makers had investors revved up. Then, as the year drew to a close, cyclical stocks, emerging markets and alternative energy moved to the fore. They have shone in recent weeks as the fallout from the hotly-anticipated US election began to cool.

Here, we look back at a selection of this year’s stories that caught the attention of Opto readers the most.


With Luckin' Coffee’s share price so low, can it survive?
For a long time, investors bought into the promise of Luckin’ Coffee [LKNCY]. The Chinese coffee brand, in its heyday a competitor of coffee colossus Starbucks [SBUX], experienced an accounting scandal in June that brought the company, and Luckin’s share price, to its knees. The firestorm that followed fraud allegations resulted in a public ousting and the stock’s delisting from the Nasdaq.


Will Aston Martin’s share price accelerate with a new team behind the wheel?
Aston Martin Lagonda [AML] has had a tumultuous 2020. Since its share price began decelerating in the second half of 2019, the luxury carmaker hasn’t been able to switch gear, and market vents in March did nothing to help. In June, the entry of a new executive team, including Lawrence Stroll as chairman, chief executive Tobias Moers and CFO Kenneth Gregor, resulted in some renewed optimism. Recent months have seen a moderate uptrend for the stock, but shareholders will be disappointed nothing too spectacular has occurred since.


Where will Lloyds’ share price be in 5 years?
A volatile 2019 for Lloyds’ [LLOY] share price was followed by an equally volatile year for the major UK bank in 2020. The stock has had some highs and a lot of lows as its exposure to the UK economy, and the throes of Brexit uncertainty, have punished the UK lender. In July, after a decade at the helm Lloyds Banking Group, CEO António Horta-Osório announced he would be stepping down from his duties as of 2021.

However, it’s not all bad news for the bank. As this article, exploring what could happen to Lloyd’s share price over the next five years, shows, the bank has many positives including a strong balance sheet, digital innovation, and a potential headwind from a UK economic rebound.


Is IAG’s share price about to hit turbulence?
The airline sector was arguably the most exposed to the ravages of coronavirus-induced global lockdowns. As a whole, the industry suffered terribly this year as travel stopped almost entirely, and airlines scrambled to mitigate some of the cash burn suffered from grounded aircraft and lost ticket revenue. International Airlines Group [IAG], the parent company of British Airways and Iberia, was not spared — the stock was down 71.8% in the year-to-date (through 10 December).



IAG's share price loss YTD


With oil demand down, when will BP’s share price recover?
Global demand for oil is said to have already peaked in 2019, and oil majors such as BP [BP], have suffered from a flow of negative news related to oil prices and a longer term trend away from non-renewable energy in 2020. So it came as a surprise to many in October when BP revealed, albeit cautiously, some details of its usually secretive trading arm. This came in the form of comments from Bernard Looney, CEO of BP, about the “long track record” of said trading arm supporting BP’s return on average capital employed each year by “close to” two percentage points. Bloomberg calculated the average annual capital of BP between 2015 and 2019 would imply returns of around $2.5bn – an estimation on which BP declined to comment.


Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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