In January 2017, the mood was sombre. President Trump had been inaugurated at the White House, Europe was battling with political extremism and the UK was locked in Brexit-related uncertainty.
Many brokers believed that markets would reflect these problems and share prices would fall. How wrong they were!
The FTSE 100 index of the biggest quoted companies at the year end is up 7 per cent at 7,688. The FTSE 250 index has closed at 20,726 – 14 per cent higher than at the start of the year. And the index of AIM shares has risen 24 per cent to 1,050.
Winners
Among our winning stocks, the top five are a reminder of the benefits of diversification, comprising an energy consultancy, a miner in Greenland, a German property group, a pawnbroker and a virtual reality specialist.
Midas recommended Bluejay Mining PLC (LON:JAY) in August, since when it has soared by 34 per cent to 22¾p. The group is forging ahead with one of the largest and highest grade ilmenite projects in the world, based in north-west Greenland.
Ilmenite is used to produce titanium dioxide, an essential component of white paint, sunscreen, certain cosmetics and even some food products. The mineral has a wide range of industrial applications, demand is global and Bluejay should have an excellent supply once it moves into production.
Chief executive Rod McIllree is confident that the group will start to produce ilmenite in 2018, moving into profitability two or three years later. Early signs are positive and brokers are backing him, suggesting the shares should continue to rise over the coming months.
Midas verdict: Bluejay has come a long way fast and nervous investors may want to take profits at 22p¾, especially as mining companies are high-risk before they actually start making money. Adventurers should hold on though. McIllree is highly competent and the mine site is exceptionally good quality.
