Why Intu Properties may be a painful contrarian ‘buy’

Follow this link if this email is not displaying correctly DAILY BULLETIN Tuesday 9 May 2017 Why Intu Properties may be a painful contrarian 'buy' by Robert Stephens | Equities | 5 mins. to read This week, the Halifax House Price Index said residential property prices in the UK recorded their first quarterly decline since 2012. The reasons given for this centred on affordability. House prices have apparently become too expensive given rising inflation and the squeeze on consumer spending which is beginning to be felt across the UK. While the Halifax House Price Index is only focused on residential property, it could be a highly relevant guide for commercial property. Consumers may start to struggle to a greater extent now that inflation has surpassed wage growth. Spending on a wide range of items, including houses, may fall and leave the retail sector, and the shopping centres which house it, in a more difficult situation. Therefore, buying a shopping centre operator such as Intu Properties (LON:INTU) could be seen as a contrarian investment. Its valuation may come under pressure in the short run if the outlook for consumers deteriorates further. But with a sound business model, appealing valuation and high income potential, it could be an appealing long-term investment.   Click here to read the full story LATEST STORIES FROM OUR BLOG Concha: Best case scenario triangle target at 1.5p by Zak Mir | Trading | 1 mins. to read I seem to remember (although my memory may be playing up) commentary regarding Concha (LON:CHA) being a stock to avoid.   Click here to read the full story Mears Group, philanthropy and the fragile homecare market by Stefania Barbaglio | Equities | 3 mins. to read Home care is a market with a lot of potential, especially if we think about the opportunities of adapting to the reality of an ageing British population and its needs. Click here to read the full story Intelligent Energy: Imminent 50 day line break targets 15p by Zak Mir | Trading | 1 mins. to read One of the most difficult things to get right in terms of timing stocks and markets is to get on board successfully after a bearish phase.    Click here to read the full story Mad about the boy by Victor Hill | Economics | 10 mins. to read He is 39 and-a-half years old. He came top at Sciences Po and ENA. He was Minister of the Economy before he engaged in a death-defying display of political trampolining which took him to the very top.   Click here to read the full story This should be a piece of cake by Evil Knievil | Evil Diaries | 2 mins. to read Macron has emerged on top. But France's involvement in the Euro still needs to be settled – and Macron offers no hope there.   Click here to read the full story QUOTE OF THE DAY "I'm spending a year dead for tax reasons."                                                 Douglas Adams MASTER INVESTOR SHOW VIDEO EXCLUSIVE LATEST EDITION OUT NOW La Belle France - It's time to feast on the crème de la crème of the French stock market Capital punishment - Common inheritance tax pitfalls and how to avoid them Momentum investing - Is this the best-kept secret in finance? Shaky foundations - Has Brexit put commercial property funds at risk? Bag a bargain - Three small caps trading below book value Click here to download as PDF   Click here to read online Master Investor Ltd. Suite 88, 22 Notting Hill Gate London, W11 3JE T: +44 7515 542707 E: swen@masterinvestor.co.uk Share the newsletter: Follow us: Copyright © 2017 Master Investor Ltd, All rights reserved. Master Investor is a trading name of Master Investor Ltd. Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such decision. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news. Want to change how you receive these emails? Why did I get this | Unsubscribe from this list | Update subscription preferences