I wish I had some good news to share but covid cases are rising and that has consequences for the economy. Austria has imposed a new full lockdown and the virus is spreading across Europe. New cases in the UK are running at 32,000 new cases day with deaths back up to 1,400 a week. So investors are consolidating a position that is diverse and making sure they have enough cash to weather any impending storm. The price of gold is up as some investors consider worst-case scenarios.
Healthy bank balance
Small investors like me need a healthy bank balance as I see food, energy and petrol prices rising. The oil price has dropped back a little as the US releases oil reserves but how long will that last? I’m going to keep my petrol tank topped up just in case of more panic buying. I also have a well stocked food cupboard and freezer! I have been buying beer and wine for Christmas early as well just in case the supermarket decides to prioritise food deliveries. I’m consolidating a position in more ways than one!
What to deal?
It is difficult knowing what stocks to deal now. I bought Marstons a couple of weeks ago and I think many people aren’t ready yet to go back to the pubs. I’m nearly 8% down now on Marston’s but I see it as a long-term investment. I think I will sit tight for a while and see what effect Christmas has on brewers and the stock market as a whole. Will we see a Santa rally? I’ll be getting small dividends from BP and Shell in December so that’s something to look forward to.
My small investment on the eToro platform is giving me a return of 11.9% which isn’t too bad considering covid is spreading again. I have 32 stocks now and a loss making investment in XRP. I think this will be the last time I try making money from cryptos! I’m 13.86% down on that investment but I only invested $25! I can stand a loss of $3.50. When you’re investing every £ or $ counts so never say, it’s only a couple of quid! My top investment on eToro is AMD returning a nice 40%. My latest investment was Cameco which is losing 2%. As the portfolio is diverse and I made profits earlier in the year I’m still getting a return on my investments.
I am concerned about the future. Covid is getting worse now as children spend more time indoors instead of going out in the fresh air. They pick up covid at school or college and take it home to their parents and grandparents. I get the impression that there are more asymptomatic cases now than there were last year too, which drives transmission. In fact, the assumption that the delta variant is more transmissible may be wrong it could be that it spreads more because there are more asymptomatic carriers.