- 7th June 2020
- Posted by: Dean Hall
- Category: Newsletters
I hope you are keeping well and now enjoying some new freedoms once more.
Schools returning, retail and other businesses now reopening is this the new beginning that we all longed for a little while ago.
It appears that retail wants to come back with a bang and sales have been announced with up to 70% off. These are not budget retailers either John Lewis, House of Frasier, Debenhams and Next to name a few and they all have one sole focus, moving on their seasonal stock as quickly as possible.
Warehouses have been packed with stock for some time now and as we all know our own shopping habits are driven by the weather and holidays.
This is on the back of other industries now reopening with stock to move as soon as they can.
Is now the time to buy the new car, do those home improvements or spend a little?
Overall, we are seeing a little more stability and the markets are holding on to the gains they have made in April and May and this to my mind is the most positive outcome yet.
We like stability as this starts to give a more solid footing for us to plan forward from and then have a little more certainty of the direction of travel.
My concern in all of this is now we have a “release” date of the 15th how will this then see the economy open back up.
As I mentioned last time, will this see us all rush to the shops and queue for hours to get in a shop like Ikea recently.
Or will this be a tentative slow release with people being more cautious and wanting to see how things settle first. This is a bad outcome for business as the demand needs to bounce back quite hard and fast.
It appears that the holiday industry is still being held back and to that end we will see EasyJet and Carnival removed from the FTSE100 in this next reshuffle. This goes to show the impact this has had on such businesses and millions have been wiped off their values. Even with recent double-digit gains on their shares recently this has not saved them, so it seems.
I have noticed planes are flying overhead again at home, given not too many but I certainly can hear them once more.
What I have also noticed from being back out a little more now, we are now a nation of middle-distance runners and cyclists.
So, Tokyo 2021 I expect big things from us as a nation in any running or cycling events.
Hand in hand with positive mental health is our physical health and moving and being more active must be the right way forward for us all. If we can be more active, we can reduce the strain in the NHS long term and the funding issues it does have could well be seen to soften.
So, investment wise where are we at right now?
In really simple summary here, we all have differing investment journeys and start dates, so we all have different outcomes.
However, values are where they were last year and in the most part, we are seeing profit as well.
It’s not all doom and gloom and the way in which we invest remains to be diversified and driven by a process not emotion or feelings. This is the path we will remain upon and we will not be looking to reinvent the wheel.
A little lighter this time around and some green shoots for sure, but far too early to call a full-blown recovery just yet. Let’s see how the next few weeks play out in this really critical time.
If you are now venturing back out to the big wide world, please stay safe. Feel free to make contact if you want to have a catch up about your planning or just in general.