The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Not mention the further weakening of the dollar. see https://www.forex.com/en/market-analysis/latest-research/what-does-bidens-stimulus-plan-mean-for-the-us-dollar/#:~:text=Since%20the%20pandemic%20hit%20the,to%20recent%20lows%20at%2089.20.&text=Theoretically%2C%20%241.9%20trillion%20of%20stimulus,mean%20a%20lower%20US%20Dollar.
The main concern is it leading to a rise in inflation, which is causing panic around the globe already.
"Inflation erodes the value of money. ... However, inflation eats into the purchasing power of every dollar you receive from bond interest in the future. Since those interest payments are now less valuable as inflation rises, your bond is less valuable. This causes the price of the bond to drop."
This is why we are seeing a sell off, even though inflation isn't massively high now, investors are predicting it will be. That's why the market got spooked and the markets took a battering.
So the $1.9 Trillion stimulus package is not really as positive as it seems in some investors eyes.
I really sincerely hope the longer terms holders who have no doubt been through hell, get some positive news on the day. I don't really invest all that often, but when I do I commit to it 110% hence why I'm glued to the board all-day. I have had 5 investments since I started: BHR - disappeared off the face of the earth - sold 2 weeks before it happened after reading a report about the infrastructure around the site not being adequate for scaling, got a gut feeling and bailed lost a bit....ECR minerals - made 80% got out too soon. Greggs - bought in at £4,65 made an absolute killing around 400% over the past ten years or so, buying and selling, should have got back in at around £11.00 but had funds tied up in business. Aml made 80% in a matter of week s last year and now rr 17-18% up approx so far looking to hit 50% before I go back to running my business. Good luck all and don't take it too personally I'm only trying to retire early!
In that case, it will hinge entirely on what happens between now and results day. So in theory, if we monitor the news and determine whether or not the news is positive or negative, we should have a very good indication on what will happen come results day. If the news is already fully factored in then it's logical to assume that only news from today onwards will really affect us. This should certainly help us to make a better buying/selling decision. I'm not going to comment on my trading strategy as it winds people up haha.
Do you think they had a heads up over the slow progress in Europe? and decided to shut down to save cash, or is the European news completely new to them as of the 26th? Is it possible that this is additional news or already factored in?
My opinion is that flying hours will be less than projected, they predicted 55% of 2019's levels instead of 70% last time which sent the share price down.
They are planning a 2 week shutdown in summer in what should be a time of all hands on deck. It is unavoidable to announce this as they need to consult with the unions and put things in place in good time, and get an agreement on it.
Holiday bookings were down 50% already, the slow progress of Europe in my opinion is additional news since the jan 26th announcement and will push those flying hours down further and result in a slightly higher cash burn. If this is the case the market will respond accordingly.
This is just my opinion so don't get angry, if you don't believe that this is the case then tell me why. Have a reasonable debate based on your own research. After all we all need to make decisions and if we do not pool our resources we will not make the best decision to suit our own plan.