A democratic stock market
Democratic stock market
I’m old enough to remember the sell off, of nationalised industries in the UK. The gas industry, water, telephones and electricity were all sold off at bargain prices. Even the TSB was sold and the government didn’t even own that. It could have been a good thing, but they were simply sold off to the middle classes. Most people lost out and have since suffered with high bills from those industries. A truly democratic stock market would give access to all.
One problem is the dealing fees, the rich get frequent trader discounts. The poor get high fees and a complex system that their education didn’t prepare them for. That is the other problem, education needs to be changed. If the ‘man in the street’ took an interest in Britain’s large companies and had investments, they would be more financially secure. Dare I say, less reliant on the state in times of crisis? While I believe people should be able to rely on the state in times of crisis, investments would still make people feel more secure. Collectively they would have a stake in UK business and industry and if technology was used to give people more control at the companies AGM, that would mean more democratic control of large companies like Tesco. Tesco would benefit because they would not only have to listen to customers, but listen to customers who were also their shareholders.
Money is the stuff we use to trade with. Too much floating around in the economy and it’s too easy, that discourages competition. The reverse is also true when competition is so fierce we see companies going to the wall. Now many euro-zone countries no longer have control of their own currencies, we can even see whole countries going to the wall. Greece is the country desperate for liquidity this week. Who next week? The uncertainty increased risk and the stock markets around Europe tanked.
I had a couple of bad days, but the markets adjusted as investors looked for bargains. My latest acquisitions, Immupharma and Monitise are making a loss, on paper anyway. I think both companies have potential, but only in the long term. Traders look forward though, so if the companies can put out a few RNS announcements, it will give investors confidence. My other AIM companies are Solo Oil and Verona Pharma, both of which look after investors by keeping them informed of developments. All four companies are undervalued at the moment and the first two are better investments, but need to put out more information on progress.
I think my investments on the London stock market will pick up next week. The crisis in Greece is set to change, either they will pull out of the Euro or get the liquidity they need. If the former happens, the drachma could be brought back; the value of which could drop dramatically. It would make holidays in Greece very cheap though!
That’s all for this week. I have high hopes for RSA Insurance next week too, it seems to have consolidated; so maybe time for a rise in share price.
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