Yesterday, the Bank of England hiked interest rates in response to the increasing inflation rate. Omicron appears to be a threat that we can’t ignore but the signals in the economy suggest we can continue to recover from the worst of covid. The Bank of England raised it’s interest rate to 0.25% which is still quite low. That helped the GBP:USD exchange rate a little, the rate is 1.331 this morning. I don’t want the pound to go up because my eToro investment are in USD. Some large companies get their earnings in USD too so there is a downside to an appreciating GBP.
I won’t be celebrating Christmas much. I’ll cook a Christmas dinner but that will be the extent of my Christmas. Omicron will spread through Christmas and new year and I expect the peak of positive tests to be around the 5th of January. Will we all catch the omicron strain of covid? It will be hard to avoid but I shall make an effort to avoid it while infection are high. Those idiots who think it’s all a hoax to control us will be hugging their mates in the pub and defying the virus then spending weeks in hospital regretting their stupidity.
Some stocks have recovered but the market is turbulent. Yesterday was a better day but breweries, leisure and travel stocks are still struggling to return to normal. I’ll get dividends from BP and Shell next week and I’m still positive about oil stocks and banking. Lloyd’s Banking Group has been disappointing of late but their share price is up this morning, perhaps benefiting from the interest rate hike. Marston’s is up too which was my recent investment.
My return on eToro is still over 10% so that isn’t bad considering the turbulence off the markets. I can now invest just $10 in stocks and cryptos. Commodities is a $1,000 minimum investment but I can leverage that type of investment. I have considered shorting the USD and leveraging it x10 so investing $100. That could be an option if the USD starts falling against the GBP. I could protect my USD investments by shorting the USD. If you want to invest using eToro, you can invest, say $500 and diversify that investment across 50 different companies now. That would be a good way to start investing and you lower your risk while investing around £350 which is a fairly modest investment.
Our covid Christmas falls on a weekend this year so we have the option of treating it like any other weekend and getting back to normal on the Monday. I expect there will be crowds in the shops on Christmas Eve and then those who pick up the virus will start their incubation people and will get sick after Christmas. Then there will be those who pick up the virus celebrating Christmas and so on into new year. So expect a peak of new cases in the first days of the new year.