Shares outlook for 2009
At the start of 2008, we highlighted three "interesting" stocks to watch, unaware of the turmoil in the world's markets which was to follow.
One year on, the three stocks performed as follows - BP down 13%, Tesco down 24% and BAT down 7%.
In the same period the FTSE 100 fell 31%, meaning the stocks outperformed the index - despite losing money for investors overall.
We suggest that these same three stocks could be worthy of another look running into 2009.
BP remains a cash-generating giant which has benefited from both the general strength of the price of oil and a number of production facilities coming back on line.
At the same time, the change of management at the top is already beginning to bear fruit.
BP's stock has become an investment destination for investors seeking yield as well as growth.
BP currently has a dividend yield of 4.3%, which means that it has attracted the attention of income seekers.
Tesco's share price decline has masked some of the strengths of its underlying business, particularly in the UK.
In the US the launch of its Fresh & Easy stores could not have come at a more difficult time in the economy, even though there have been some reasonably promising signs.
Tesco's international expansion has continued apace, while it increased competition in its home market.
Despite the likelihood of continuing economic woes, Tesco is regarded as a core holding in its sector, with the added benefit of now almost being a recovery play.
British American Tobacco is increasing sales in emerging economic regions in order to counterbalance threats to its traditional market places.
It is also looking to benefit from the lower-cost wages of emerging markets.
BAT plants in the UK, Ireland and Italy have been closed and production moved to existing facilities in Singapore, South Korea, Poland and Romania, where operating costs are up to 50% lower.
The more recent strength of the US dollar has also helped.
The sheer size of its operation means the likelihood of it having to acquire other companies for expansion is considerably less than competitors.
There is an adage - "It's the time in the market which is important, not timing the market".
And it appears that 2009 in particular could be a year where trying to time any recovery is pure speculation.
As things currently stand it would appear that the world's economies are in for a tough 2009, with the first six months of the year likely to be extremely difficult.
On the other hand, the market is a discounting mechanism which tends to recover well ahead of the real economy, and indeed often when the news seems to be at its worst - like a coiled spring.
Investors need to be keen eyed, and ready, for such an opportunity.
Richard Hunter is head of UK equities at Hargreaves Lansdown. Send your views and feedback to fintalk@teletext.co.uk or text 07624 809882.
Hargreaves Lansdown