Geoff Cutmore - Morning Thoughts

Happy New Year

Happy New Year to you all, and let's hope for a prosperous 2007.

If you are looking for stocks to kick the tires on, Jonathan Green, trading director at JN Financial suggested three on this morning's show: Lonmin, ICI and Reuters. Mining, Chemicals and Media respectively. Jonathan thinks these are all worth adding to the portfolio. As always, do your own research and make sure you are comfortable with their fundamentals -- both Lonmin and ICI have made good gains over the last year or so.

Interestingly, our technical analyst this morning called gold higher. Geert Jan Nikken from Fortis Bank suggested we see $670 an ounce followed by $730 this year. Is that a function of a decline in the dollar, or a message about the prospects for higher inflation? Higher inflation and its consequent implications for interest rates would seem at odds with the broadly bullish calls on equity markets for full-year 2007.

Are there any fresh equity bears out there? The perma-bears have had a difficult few years and are not offering very much that is new. The market consensus seems complacent about the possibility of a market pull-back. I feel like we need to hear more views from the short side of the book -- or is this just the paranoia of a business hack? 

Stocks to Watch in 2007