Spreads and commissions #investments
The government is in favour of staying in the European Union and is at pains to tell us that the City of London is at the centre the global finance industry and makes shed loads of money for ’Britain’. You might think they make their money on the stock market spreads and on commissions.
Judging from the latest news you might think they launder money for the rich and spirit away billions, if not trillions, of cash to offshore tax havens. Jeremy Corbyn, another planet saviour, wants to privatise the railways. If he really had a clue he would privatise or at least regulate the stock market. The true red believes in public ownership as much as the true blue believes in the private market. Neither believes in doing what is best for the people.
Fiddled and fixed
When everything is fiddled and fixed by the rich and powerful, it can be tricky to invest your money. Cartels like Google and Microsoft make money so easily because they have no competition. Facebook has virtually no competition. Where are the British companies in this technological revolution? The British people aren’t encouraged to invest because the stock market is run by a load of upper-class spivs serving a load of upper-class tax avoiders.
Those same tax avoiders are running the country and it isn’t surprising that economic growth is at zero and they prefer to invest their money elsewhere. I’m sure the return on investment is much higher if you invest in gun running via some secret investment fund in the Virgin Islands. Meanwhile, the middle-class backbone of Britain have investments and pension funds that rely on British interests. Confidence is at an all-time low because of the stupid referendum and politically driven social policies that are causing million deep distress. We have a government devoid of morals and values.
With all this political negativity we have to try to think positive. I think there are opportunities for those who are brave enough to face the risks. We have a referendum hanging over us like a bad smell and depressing the market. This suggests that whichever way it goes, the market will probably soar at least a little after the June fiasco. The rock bottom oil price is good news if you are queuing at the petrol pump but bad news if you’re a terrorist organisation relying on oil money to buy your next cache of Kalashnikovs. The oil price is bound to go up eventually, it is bad news for many governments. Is now a good time to invest in oil shares?
Yes, I’m still hoping Solo Oil will gush profits as gas sales in Tanzania get under way but it diluted share value this week by placing shares at 0.25. I think a rights issue might have been a better idea, then I could have got some at 0.25 too. I had to pay 0.28 and with the market makers spread increased to nearly 8% the price has fallen this morning despite far more being bought than sold. The dodgy behaviour of the posh-boy market makers is holding down the price. When this happens, pressure builds and a little good news can make the price soar. That little good news could come from Tanzania, the Horse Hill play or it could even be a bid now Solo is going to become a producer with substantial assets.
Prices across the market are being held down by political indecision so we can expect things to become more bullish in June. Maybe the market makers will reduce spreads and encourage some trading through the summer too, especially in the AIM Market.