The Old Man’s Views
A Bizarre Week in the UK, But a Good Week for The Markets
Last week when I wrote, Liz Truss was still Prime Minister, and Jeremy Hunt had just become Chancellor, which I hoped would steady UK PLC. That would support cable, Equity Markets, and BTC, which I have suggested buying for the past few weeks based chiefly on technical observations.
This week, I am writing this following Prime Minister Rishi Sunak's first appearance in the House of Commons.
Whatever happened in the UK, we are seeing the markets go a little higher, which is the most important thing.
We probably see the start of the famous Christmas rally, but that has yet to be fully confirmed.
In real terms, we are witnessing a correction in a long-term bear market.
We have some people crossing their fingers and hoping for a return to a bull market. But I'm yet to see something happening in the real economy or other parts of the world that supports these markets turning full-blown bullish.
We have reporting season upon us, and there might be some positive results. The American mid-terms could affect sentiment stateside, but when I look beyond Wall Street and into the High Street, it's hard to get too excited about what will happen next year.
It will be a cold, expensive winter, China remains exceptionally shaky, and we have that little issue of 230 trillion in global debt. Plus, of course, crazy Putin and Ukraine.
I will enjoy any short-term bullish sentiment, but I will not get carried away.
I have noticed many this week talking about how friendly Sunak is to the crypto industry, and as a very young Prime Minister, we all know he follows developments in the digital world.
However, he is also a strong supporter of introducing CBDC plus more regulation into the digital arena, and I don't know if this is a good or a bad thing.
Overall, whatever happens in individual countries, we should not ignore them; we should enjoy the respite from this past year of economic misery.
I've squirrelled away some gold for a rainy day or for when SHTF. And hold a bit of BTC (although, in hindsight, I should have bought a little more).
We will have some good speculative opportunities over the next few months, on both the long and the short side, So I intend to throw a few more pennies into financial markets.
I will give some real-term ideas, as I did this week, on the SGT website. If you wish to receive some quick thoughts and observations, do sign up!
Moreover, with the increase in trading opportunities, I will move away from these more flippant reports and start to focus on pieces, explaining what we could expect for the coming week.
These ideas will be on a broad and diverse number of products, so I hope you follow them as it could help with your overall portfolio.
Finally, I have closed all my short positions, including a short Aluminium position.
I mention this not only as an update but because this is the right and proper thing to do if you make observations and suggestions to other people.
In our social media world, too many people jump on the keyboard and start shouting about buy this or buy that, but rarely do you hear from them if they are wrong. And, when you do, they will blame the markets or the industry for their losses.
To those who put out ideas, there is nothing wrong with getting the markets wrong; we all do it. But do not run away when it happens.
If you aim to build a following, tell your followers the good and bad news. That's the fair way to behave.
Until next time, enjoy!