Unpredictable future #investments
The whole economic picture for the UK and maybe for the world is still uncertain. Despite the super-computers running economic models and expert economists making their predictions, the economic future looks even more unpredictable than ever. The future for the UK is even more unpredictable because of uncertainty caused by Brexit.
Yet again investors flee for the safety of bonds, gold and shares in the biggest companies. The falling value of the pound sent investors looking for big companies that paid nice dividends and GlaxoSmithKline fitted the bill and as an exporting pharmaceutical, it was looking at increased revenue and profitability from the falling value of the pound.
While the largest companies seem like safe harbours, the AIM looks decidedly stormy waters. Many AIM companies are in dire straits and could go under from lack of investment. The high-risk overseas companies could have a tough time now. Graphene Nanochem looked promising but most of the investors have given up and the shares are suspended until they provide proper accounts. I have been watching Solo Oil closely and they should have posted an update on the gas payments from Tanzania, but they have been eerily quiet so far. On the boards this morning someone said Aminex has received a payment and news could be coming soon from Solo. The share price of Immupharma has been creeping back up as they get closer to making real progress with their lupus drug. Verona pharma has been raising funds on the NASDAQ and so can continue its work developing another new drug.
I bought Taylor Wimpey at 127.5 and today’s price is around 155 and so that is a good return in just over a month. That was an easy decision, the price got trashed in panic. I can see that going over 200 before very long. We have an unpredictable future, but demand for housing isn’t going to go away.
There are lots of bargains in the market at the moment and even FTSE 100 companies like Lloyds Banking Group look undervalued. I’m watching the banking sector closely. I think ITV could be worth watching too as companies increase marketing spending. One such company spending more on marketing is Premier Foods and their share prices have been creeping up slowly which suggests that Nissin could be increasing its stake.
Many prices got trashed too much by the Brexit vote and when results come out the prices rebound significantly. Barclays is up 5% this morning following its half-yearly report. However, the whole banking sector is unpredictable.