What will the new year bring? #financefriday

I haven’t written a finance post for a few weeks. I had a break for Christmas! Now we can consider what will the new year bring? There have been predictions of 6% inflation by next year and gas prices have soared so 2022 could be an expensive year.

What will the new year bring?

I am a little concerned that the spread of the omicron variant will bring about staff shortages and not only affect the NHS but supply chains too. I have a grocery delivery on Monday and I hope those deliveries aren’t disrupted. They took on extra staff for Christmas so I think they will probably retain the temporary staff if they have a lot of staff sickness. The huge rise in wholesale prices for natural gas is a concern too. We will see retail price rises in the spring. My prices are fixed until the spring which is reassuring. Incomes tend to rise following price rises but it is that gap between prices rises and incomes going up that makes life difficult.

Investments

There will be investment opportunities in 2022 as the economy recovers. I’m still very positive about banks who will help businesses recover with loans and credit. Lloyd’s seems to be a good investment at the moment. I think the oil price will hold up for a while so my investments in oil companies should bring in dividends for a while. Other sectors such as hospitality might take a while to recover. Tourism and airlines might be worth a punt but again they will take time to recover.

eToro

On the eToro platform you can now invest as little as $10 in a company which allows you to diversify even more. I’ve diversified and now have investments in over 40 companies and one crypto (XRP). Most of my $10 investments are making a profit of between a few cents and $1. I have two losing a few cents. A few cents here and there mounts up though! Overall, my return on eToro is just under 12%. The pound appreciated in value today reducing my return in sterling terms.

2022

What will the new year bring? I have an investment in Marstons so I hope people will be able to go back to the pubs and I hope as air travel resumes my investment in Rolls Royce will prove to be a wise move. I also think banks will do well and Lloyds in particular. I don’t intend to spend too much money for a while. I see lots of price rises coming. Hopefully, the inflation will be temporary and will fall again in 2023.

I would like to wish you all a happy new year –  above all be healthy and wealthy!

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