2 Steps Ahead? Market Observations
23 June 2020
To all Financial Friends
Today, 10 minutes ago, Boris Johnson announced easing of the Virus rules - from 2m to 1m etc. The FTSE 100 had already risen by 1.44% prior to the announcement today and by 3.07% across the whole week ending 20th June. Remember the market moves up or down before announcements are made and in anticipation of the expectations of investors. An important principle to remember for the future.
Financial Friends intent on taking profits and storing them in cash against a likely fall in the market later, might take a look their holdings and consider profit taking yet again as appropriate?
Looking 2 steps ahead of the market is a principle stressed during the Money Awareness Course. Today the recent ex-Chancellor of the Exchequer Javid Sajid on BBC news forcefully encouraged the Government to spend even more on infrastructure. Across the weekend financial commentators spoke out about the potential threat of rising inflation due to our increasing use of quantitative easing.
In the last week the financial trade press has been running articles promoting sustainable and ethical/green funds suggesting the world of financial advisers are running behind events and failing to advise in this area. Nevertheless, the trade press points out the popularity amongst investors of this sector of the market and confirming that some of these funds are outperforming.
In my latest financial summary issued just over a month ago - 'The Shape of Things To Come'-as you will see in the attached copy, I highlight specifically infrastructure, inflation linked bonds and ethical funds. Profits hopefully arising from these types of asset will take time to mature but early signs are promising.
Meanwhile a good number of our low-cost monthly savers are drip feeding money monthly into funds tracking the FTSE 100 Index. These fortunate investors will have seen a return of over 4.5% over just the last 10 days - a time to take profits and enjoy the proceeds perhaps?
Money Awareness Course students are more than welcome to use the 'Hotline to Harris' phone Zoom service to talk things through and get answers to their questions - always good to hear from you.
PLEASE NOTE: A financial or economic commentary like these, are written to explain, interpret or give an opinion on economic events and markets to help readers understand what’s happening and why it matters. Designed to help you make informed decisions of your own by making you aware of opportunities, risks and potential rewards in the market.
