Today IG Group (IG:LSE) reported that their UK market has reached saturation. I find this disturbing news considering the market expected growth. I am surprised the stock price has only fallen 4% in early trading. Therefore, I have sold out today at £3.57.
Although I gained around 20% on this trade, it saddens me as I thought it was a long term hold that would provide great gains.
It seems IG Group’s revenue is hampered when investors favour stocks, especially long over short positions. This coupled with lower market volatility makes these spreadbetting firms uncompetitive, when compared to ISA accounts in the UK where investors can fund up to £7200 per year. All my stock holdings are now in either a SIPP or ISA wrapper.
However, GMG is doing well at £1.85 after buying at £1.52 and with the blockbuster games pipeline, including Call of Duty, Modern Warfare 2, I expect this stock to be a great performer. I’m currently up around 20% on it but hope for more. Incidentally, my SIPP is now £16,200. A decent recovery, but only around the same level I started with 3 years ago. However, my ISA has more than made up for it, but that’s not the focus of this site and listing it’s details feels like cheating as this is a SIPP site dairy site for my Pension investments.
