Are things as bad as we think with the general economy?24 Nov 2022 13:43
To point out I am not a ramper or a de-ramper. When this was £4 plus and people were predicting £6, £8 and a tenner a share I was trying to bring balance to the euphoria by looking at reasons why it would not rise meteorically forever.
The basic fundamental reason why I wasn't not looking to buy in at that point was it was priced in for perfection and when that is the case there are more reasons for things to go wrong than right.
Currently, I believe many stocks are priced for the end of the world. But are things as bad as they are? Or as bad some people thing they will get? If things don't get as bad as predicted how much free cash with have households have again.
The news always brings out the extreme cases to help sell the fear. But I look around me and many if not most people have energy bills locked in, mortgages locked in and are still spending money and living as they were 12 months ago.
We are gaining strength against the $ which will help. Already I am seeing fuel resume its drop in prices. As low as £1.53 the other week. Diesel which is more crucial back down to £1.82. A mild winter so far, which won't help with winter clothing sales but will on the consumer.
The money that people are getting kicked back for a lot of people is just spare money. We didn't need it and are just spending it on whatever, going back into the economy.
Whatever happens to the overall market, I can't see BOO going against the grain. If sentiment and the markets bounce, I can't see BOO being left behind. It may not get to £4 in a month, but it will be higher than 40p.
There are people on this board who are predicting doom and the end of the world for retail but super bullish on travel stocks. I can't see why? As the they are both desirables and if anything, retail such as clothing is more or a requirement than travel.