President Biden was in the Middle East this week talking down the oil price. He has been critical of Saudi in the past but now wants them to increase the supply of oil. The talks did drive down the oil price and the share prices of oil majors. That made me think it might be time to sell oil majors. What would be good stocks to buy though?
There have been relatively big movements in share prices across the market but Unilever just seems to tick up and down a little but mostly up so could be a great company to invest in now. I am also interested in the way GSK is being split up. Unilever did want to buy the retail products part of GSK which will now list as a separate company.
With the price cap on energy lifted so high we could see the share prices of natural gas producers soar next winter. I’m surprised they aren’t soaring higher now. Maybe the UK isn’t as self-sufficient in natural gas as we have been led to believe?
Inflation has been pushed higher by both quantitative easing and by the high oil prices and other energy costs. Food prices continue to rise and I see no end in sight. We will now see wage rises and so we are sure to get into an inflationary spiral. Even the smartest investor can’t get returns that even match inflation so we all lose. That is the way we pay for the pandemic. I think Rishi Sunak will soon be prime minister and he seems the best of a bad bunch to run the country now. Hopefully, he will stick to the same policies and help the most vulnerable. I hope he can also innovate and find private investment to grow the economy. We need to grow our technology industry and maybe set up SPACs to maybe buy up part of companies and then expand them. I’m thinking of companies like Ultra Electronics who might have the expertise to put into new companies to compete with the Americans in the tech sector. We need to make electric cars and compete in that sector too.
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