The announcement of a snap general election didn’t do much to inspire confidence in the markets did it? Market confidence is all important. Investors want stability and certainty unless they are contrarian investors who like to profit from the volatility.
Regular readers will know that I write about being thrifty on Thursdays with the exception of yesterday when I didn’t have time to write a post. In January we shop around less because we have less money to shop with. It is a frugal month for most people after the excesses of Christmas. I actually spent more on my credit card so have an unusually large bill next month. This month has been a month of making investment decisions.
Deciding when to buy and sell on the stock market can be difficult. Some investors operate stop losses but those aren’t foolproof especially on AIM. Market makers often reduce the bid price by a few percent with the intention of triggering stop losses. It seems to be a common practice on the AIM.
As a small investor, I’m always watching the market and this week my attention was turned towards the US markets. The Federal Reserve increased their base rate and this has global implications. The Bank of England decided to leave our rates unchanged, but for how long? There are already signs that the US dollar will appreciate against other currencies and my shares in GSK are finding favour again and seem a bargain compared to their October price. They have lost £2.00 a share in 2 months.
There are lots of ideas bandied about fixing Britains economy but little changes and nothing improves. The government has enormous debts and personal debt is out of control. People mortgage themselves up to the hilt and the add more debt through loans and credit cards. The government is irresponsible and encourages the people to be irresponsible too. The Bank of England doesn’t help with ridiculously low, interest rates. Lack of regulation means we get banks leveraging in order to invest in dodgy companies such as Lehman Brothers and to add to the misery and uncertainty a decision is made to leave the EU by people ill-equipped to make that decision. Us!
Globalisation has to some extent brought us prosperity but it has also brought us cartels and monopolies. Some of these companies have grown so big through the spread of globalisation that they are now very difficult to challenge and so have a virtual monopoly. Facebook, for example, has little competition. There are alternatives in China like QQ but in the western world, Facebook has the power to dominate the market.
To say the London stock market is a volatile market would be an understatement. Next week’s referendum has not only caused uncertainty it has caused panic. What can small investors do? (more…)
The EU referendum debate rumbles on and the stock market suffers and so do the balance sheets of investment funds and pension funds. Record low-interest rates have also been hitting pension funds. With half of Britain’s savings wrapped up in these funds and many of them facing bankruptcy we should be worried. Most people don’t seem to worry, nationalism has taken over their brains. It is the people with real money at stake that are suffering Brexit phobia. (more…)
Pharma in focus
Pharma in focus was really the theme of the week with Immupharma soaring as trials of its Lupuzor drug appear to be successful. The inventor of the drug is also due to give a lecture on the developments which is expected to be positive news. In early trading today, many investors were selling and taking profits and so quite a big drop this morning. (more…)
In life, we always have uncertainty and some periods are more uncertain than others. Most people try to avoid drama and want a quiet life. We want certainty in an uncertain world. It is the same when we are investing our money, we want certainty and stability but politics and religion make for constant uncertainty. Today, it is the referendum that makes markets jittery in the UK, but many problems around the world add to the uncertainty. (more…)
Oil underpins the global economy and so a low oil price should be good for the global economy. However, the global economy is out of balance and being manipulated. The global economy should be a free market but it is no such thing. It is a network of trade deals, monopolies and cartels. (more…)
There is always some political risk when it comes to investing. The prehistoric tendency for one tribe to go to war with another still exists. We might have developed supercomputers and space travel but many people still have Neanderthal ideas. It makes it difficult for those of us who want a world of entertainment, peace and security. (more…)
This week the offer for Premier Foods by McCormick was withdrawn but the offer of 65p a share did show the hidden value in the company. It seems Nissin is still increasing its holding in the company and their joint venture seems a good deal for both parties. Premier’s share price still plummeted down to 42.5. This is still better than it was before the offer. (more…)
The value of money used to be determined by the gold standard. Now we have ‘fiat’ money, value seems to be determined by confidence and sentiment. The way the global economy works seems so strange to me. The price of things we are told is determined by supply and demand. (more…)
The other day I read that the majority of members of parliament are now landlords and have their money invested in the London property market. It only needs the government to fund a London building programme to burst that bubble. No wonder they’re all scared of Corbyn getting into number 10! (more…)
It’s good to be thrifty and prepare for the worst. Remember the ‘credit crunch’ when food prices soared and petrol prices nearly hit 1.50 a litre? According to an economist at RBS (yes, the bank that messed up that we had to bail out) another stock market crash is coming in 2016. (more…)
You can buy things with money, but it also has other uses. Money to some people is power and to others it’s security. They feel secure in the knowledge that they can afford to enjoy Christmas and still have some money in January. We all tend to feel a little more secure with money in the bank. (more…)
The British parliament voted this week to extend bombing to Syria and the FTSE 100 dropped two percentage points the next day. Coincidence? Not likely. We can invest in bombs and bullets or we can invest in building things that will benefit humanity. I would prefer to invest in research to cure cancer. (more…)
Most investors suspect market abuse, but insider trading and the passing of insider information is hard to prove. Share prices often rise suddenly and the reason emerges sometime later. Even the delay in making market movements public which are usually 15 minutes is suspicious. (more…)
Mergers and acquisitions can send stock prices soaring higher and acquisitions are more likely when prices are low; mergers too are more likely when times are tough. The FTSE 100 dropped from a high of over 7,000 to below 6,000 and so many companies have been looking at M & A. (more…)
We have to think both short term and long term when we invest. While we want to see a return on our investments on paper because that gives us a virtual return and so adds to our financial security. We also want to see real returns when we sell or when we collect dividends. (more…)
We have seen the stock market fall from over 7,000 to under 6000, is the carnage over? I think to call it a crash is an exaggeration, it’s really a market correction with a sprinkling of panic. (more…)
The stock market has been dropping since June and dropped from a high of over 7,000 in May to a low of under 6,000 this week. It dropped below 6,000 last month too and then recovered, will it stay over 6,000 now? (more…)