The budget aftermath #financefriday

This week’s budget was a big non-event. It did help the low paid and we have to be grateful for that but inflation will make most of us worse off. Changing the duty on alcohol seemed like a good idea and I bought Marston’s on the strength of that but realised later that the changes don’t come in until 2023. I wasn’t the only one who rushed to take advantage of that change and hence I had to pay over the odds for those shares. The automatic buy didn’t go through. I think overall Marston’s will be a good one in the long run.

budget aftermath

Banking

Banking had a good week with Lloyds making gains after its results. Natwest didn’t gain despite good third quarter results. I did consider buying Natwest instead of Marstons and it is one to watch. Lloyds continues to gain this morning as does Rolls Royce but my gains are being dragged down a little by that stake in Marston’s. Shell reported profits below expectations this week but I’m getting a good return on my shares so far.

Cryptos

It was an interesting week for cryptos with Shib attracting interest. Shib has gone from $28 per million coins to $70 this morning. Back in August it was just $7 per million coins so the Shib army is doing very well. BTC (Bitcoin) reached nearly $64,000 a couple of weeks ago but fell back to around $60,460 today. I’m monitoring the movements of cryptos but I’m not buying just yet. There is too much volatility. The 10x gain in shiba inu in the past couple of months must be exciting the shib army though!

eToro

My investments on the eToro platform have been fairly flat and I now have 31 CFDs and a little bit of cash in my account. My return is still around  10.4% so I’m making modest gains. The world economy is recovering from the pandemic but much slower than expected. The anti-vaccine sub-culture still drags down the recovery. The virus has been spreading rapidly through schools as restrictions ended. Covid is no longer news so those awful images of people on ventilators in ICU have been hidden away. It was half term this week and I hope that combined with the miserable weather will act as a circuit breaker and cut transmission and cases.

Christmas

There will be people who can’t wait to party at Christmas and New Year so we can expect a winter rise in covid cases. How bad it will get is anyone’s guess. I’ll be getting my “booster” jab soon so will be well protected from serious illness but I can still get quite unwell if I catch covid so I’ll remain cautious. Will the stock market have a “Santa Rally”? It seems unlikely. We could see quite large falls in the market if covid takes off again and we have to lockdown again.

Budget aftermath

In the aftermath of the chancellor’s budget we all have to look at our own personal budgets. Will our incomes fall and will inflation mean more money going out squeezing our standard of living? I’m expecting high food prices, higher petrol prices and higher energy bills but I have made considerable gains investing this year and the rising prices will probably only last for a year or two so I’m not too concerned. As always, I’ll be thrifty and frugal and not paying out for things unnecessarily. I have bought some new household appliances before inflation sends the price of those up. I won’t need to make any major purchases for years now. So now I can sit back and hibernate until spring! I will be looking for opportunities and I’ll even keep a close eye on cryptos! The budget aftermath will make us all worse off but we can we can invest wisely and negate the price rises to some extent? When oil prices are rising, invest in oil companies!

Leave a Reply