The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Lloyds identified the the problem in his post. Our progress over the coming months will hinge on the survival of the middle American banks that have recklessly expanded following Trumps relaxation of banking regulations. Rising interest rates, falling commercial property values and the outflow of cash from these irresponsible banks could lead to further failures which will inevitably affect the FTSE 100 and by association IAG. Let’s hope this doesn’t happen.
In the darkest hour it is often easier to see the light ahead.
The Natural Gas price hasn’t been this low since September 20.
The price of oil hasn’t been this low since the end of 2021.
The retail sector experienced a welcome rise in February 23.
The UK is now forecast to avoid a recession.
Even our current Bank of England incumbent spoke positively about the rest of 2023.
On my weekly IAG chart, following weeks of red candles, this week turned to green despite the lower price.
I am with Lloyds, this could be a turning point.
I can’t think of a time in the last forty years when I have felt more pessimistic about conducting a business in the UK. The current bureaucratic legislation and taxation are so punishing that were I a young enthusiastic entrepreneur, the UK would not be my first choice to begin a fledgling business. This government is doing nothing to encourage investment, small or large. As I write, the FTSE 100 is down another 73 points since the close at 16.30. I fear for future of us all.
In the last month it is clear that IAG has been particularly badly affected by the down turn. This is how we compare. IAG -20.32 per cent. FTSE 100 -8.36 per cent. EasyJet -8.99 per cent. Dow Jones -5.81 per cent. S and P 500 -3.98 per cent. American Airlines -14.55 per cent. Rolls Royce +24.76 per cent. FTSE 250 -8.05 per cent. United Airlines -13.28 per cent. Nasdaq +1.31 per cent. Quite why we have been so viciously marked down is puzzling given the reasonably positive final results. Short positions have not changed since 23rd February at a reported 0.67 per cent. On the 18th March 2022, IAG closed at 141.92 pence having reported a large loss before tax. This mark down makes no sense.
Talk2pkc, if you don’t know what a UT trade is, I suggest you give up buying shares because this clearly isn’t for you. Do some basic research before to spend your cash on something you know little about.
An eight per cent bounce won’t even take us back to where we were yesterday Lloyds. An eighty per cent bounce might pull most of us back into profit. Like a cruise ship with a dirty great hole in its side, we’re all going down !! If any of us manage to survive, Putin will drop some nuclear weaponry on us for good measure. I guess this collapse in the western economy is Putins way of imposing sanctions. Works for him !!
This sell off may be damaging to our wealth but surely the more serious issue has to be the rapidly developing Russia China alliance. This could be damaging to our health. I’ll share that taxi to Beachy Head Bobbins2.