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Contents Click on the links below to get to the stuff you really really want. USA – Stocks down and bonds up slightly on new lockdown measures (#USA) UK – Positive inflation data helped lift the mood; Stocks up (#UK) Continental Europe – Stocks up (#Europe) Elsewhere – Dull (#Elsewhere) WTF – Sounds like Bitcoin (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
Investors are being pulled in opposite directions: should they invest in stuff that has suffered during the lockdowns now that vaccines seem to be surfacing, or hold off for a month or two while the latest round of infections undermines health and economic stability?
The infections and lockdown worries won out yesterday, sending stocks down and leaving the S&P 500 1.2% lower on the day. It was a now familiar pattern of cyclical companies (the ones most affected by general economic shifts up or down) suffering the most while tech and food delivery stocks did better.
The demand for and prices of lower-risk rated bonds rose, but not by much. Bond investors had seen this coming and kept a lid on their euphoria over the vaccine developments.
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UK
Stocks in the UK had a better time of it. Inflation data showed the price rises were picking up from their current worrying lows. This helped FTSE 100 and FTSE 250 added 0.3% and 0.9% respectively on the day. The lockdown measures are largely already in place in the UK, so that shock has already been felt. What’s more, UK investors have the extra-fun excitement of Brexit’s final negotiation throes to enjoy.
Technology stocks followed their US counterparts up, but the 31.2% leap of Micro Focus shares helped; the company posted a very positive trading update.
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Continental Europe
Much like the UK – stocks nudged up as folk weigh infections and lockdown measures against the emergence of effective vaccines.
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Elsewhere
Much of the same again really. Japanese stocks had already fallen in anticipation of the new lockdown measures, so not much going on there this morning. Chinese stocks are up, Indian stocks down. Yawn.
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WTF (What’s The Fact?)
Sounds like Bitcoin
Bitcoin is up in the clouds again, approaching $18,000 per coin. This after it had risen to similar levels a year or two back before slumping at great speed.
Bitcoin and blockchain constitute an attractive idea, but they’re not investments. Bitcoin has no reserve bank (e.g. Bank of England) that stands ready to underwrite the value of the coin. It also gets nicked out of accounts rather too often. And, being anonymously held, it’s horrendously difficult to reinstate holdings of any theft victims.
I really like the idea of Bitcoin – it operates outside of government, with tax-free existence and, in theory, universal acceptance. And those are also the reasons why I don’t like it. I hate paying tax, but I love roads and hospitals. Holding the pound or the dollar is a calculated risk. Holding Bitcoin is, for me, nothing more than a gamble. It might work out, I have no idea.
Would I buy some? No. I worked too hard for my money to hand it over to an ethereal casino.
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Links
Investopedia (www.investopedia.com/dictionary/) – Loads of free explanations of financial terms including some helpful videos. Not 100% accurate, but a good starting point Guffipedia (ig.ft.com/sites/guffipedia/) – Lucy Kellaway of the FT has collected some painful examples of corporate people disappearing up their own analogies Guardian (www.theguardian.com) – Free to access website with a couple of decent columnists (e.g. Nils Pratley and Larry Elliott) Times of India (timesofindia.indiatimes.com) – Why use five words when 37 will do? Daily Mail (www.theatlantic.com/magazine/archive/2016/07/the-war-on-stupid-people/485618) – Click it. I dare you.
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———————————————————— IMPORTANT This is my opinion. Yes I read a lot and share what I’ve read with you, but this content remains my opinion. It’s NOT advice. If you take my advice – don’t take my advice. Any decisions you make about investments, your hairstyle or whether or not to eat marzipan are entirely at your own behest. If you’re unable to recognise the devil’s ear wax when you see it, then you’re on your own.
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