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What an interesting first quarter it turned out to be. At first, the global stock market rose, with the US S&P 500 the index reached a high of 2023 on February 2. Then the UK FTSE 100 The index reached an all-time high on February 16.
However, after the collapse of three mid-sized US banks and the Swiss giant Credit Switzerland, the share price nosedived. From the February peak to the March 13 low, the S&P 500 fell nearly 8%. Meanwhile, the FTSE 100 fell 8.8% from its high to March 17 close.
Shares bounce back
But it turns out, Q1 was good for the global stock market. Here’s what happened in the major markets as of December 30, 2022 (in order from highest to lowest gain):
| Index | benefits Q1 |
| Nasdaq Composite | 16.8% |
| STOXX Europe 600 | 7.8% |
| S&P 500 | 7.0% |
| FTSE 100 | 2.4% |
By the best among the four indices is Nasdaq Composite, up more than six in Q1. It was the tech index’s best quarterly result since Q2 2020, when stock prices surged after initial pandemic panic.
Meanwhile, European stocks and large-cap US stocks posted quarterly returns of 7%+. The FTSE 100 was a laggard, returning 2.4%. Even so, this is above the long-term quarterly average.
For investors with heavy exposure to US large-caps and tech mega-caps (including me), this has been a great quarter. Really, I’m happy with the return on my investment so far this year.
In summary, despite all the sound and fury of the market in March, it was nothing, as global equities had a solid Q1.
These FTSE 100 stocks fell
As a value investor, I like to hunt for undervalued stocks. I didn’t catch the ‘falling knife’ that later drew blood. I’m after a ‘fallen angel’ – a solid company whose stock I see as depressed.
Out of 100 stocks on the Footsie, 62 rose in value in Q1. These gains range from 0.1% to 61.2%. The average increase in these winners was 12.4%.
This leaves 38 losers, which are down between 0.2% and 17.7% in Q1. The average decline among those with this disease is 6.2%.
For the record, here are the five biggest flops in the FTSE 100 in 2023:
| Company | Sector | YTD change | Change a year | Change five years |
| British American Tobacco | Tobacco | -13.1% | -11.6% | -33.9% |
| Ocado Group | Retail/Tech | -13.5% | -54.8% | +2.8% |
| Glencore | mining | -16.1% | -8.7% | +32.0% |
| Anglo American | mining | -16.4% | -33.5% | +68.0% |
| Fresno | mining | -17.4% | +0.2% | -40.0% |
Note that the three biggest losers – with share prices down roughly six times in three months – are all mining companies. This is not a surprise to me, as commodity prices – and especially base metal prices – have fallen in 2023.
Above the clamp
For me, the choice of this dog would be Anglo American (LSE: AAL). At a closing price of 2,678p, the £36bn company’s shares trade on a price-to-earnings ratio of nine and yield 11.1%.
What’s more, Anglo’s dividend payout of 6.1% per annum is covered 1.8 times by earnings. And with this share down 37.6% from its 52-week high, it looks like a steal to me.
Of course, I could be wrong – if global growth slows and major economies go into recession, then commodity prices could fall again. This will hurt Anglo’s profits, earnings and cash flow by 2023.
However, if only I had the money to buy this cheap stock right now!
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