RE: Red Braces Brigade19 Dec 2021 07:12
Very good to see a few old faces or more accurately initials popping in with temporarily or more permanently.So best wishes to you too CSDI. Sounds like you made a very sensible decision reducing debt and staying out of trading for the time being.
DJ I am afraid the only Santa rally we are likely to see is racing wheelibins round town in a ten foot snow drift.
I hope I am wrong but the Dow doped back over 500 points or 1.4% at the close on Friday. New York sounds dire. London sounds dire. Countries around the world are closing their doors to travellers.
Whether we call the Omicron effect an over reaction or not is immaterial. The fact is that the old and vulnerable are at higher risk and are health workers and transport operators working in cover saturated environments. Interesting program of a profile of Sir Patrick Vallence yesterday. he started off the pandemic saying herd immunity was our best form of defence. Clearly he has either drawn different conclusions with voluntarily or because its politically insensitive. Rishi Sunac returned from California a day early having held a conference call earlier with business leaders, who are pleading with him to defer Vat and business rates again at the very least. His response has so far been that he will listen but that councils already have £250,000 support to draw from. Japan have closed borders to anyone plus the Japanese banks say they are not going to provide any more stimulus to their economy . Interest rate rise has nt yet impacted too badly , but this could just be the start.
The market hates uncertainty. At the very least we are going to need some conviction from the medics that Omicron is not as life threatening per capita as previous mutations. We don't know this for sure or that there won't be more serious mutations.
On the positive side UK stocks look seriously undervalued compared to the Dow, that is no protection. The Dow is made up of just 30 companies. Apple is worth more than the entire FTSE 100. Their small companies and the Nasdaq has performed as badly as our markets.
So watch the Asian open monday morning and I think we will get and idea of what is in store for the next few weeks/months.
This is why I've been saying although desperately tempting (and I have made a couple of purchases last week, not of the falling knife kind though), I won't be reinvesting the money I have taken out till at least March/April. Of course there is money to made from the volatility as seen with AVON and ASC recently but there are record number of profit warnings coming out and thats from a period where we have been out of lockdown. Sorry to lay such a downer but am simply seeing whats in front of me. GL all
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