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The white stuff #financefriday

Like most people in the UK and Europe, I’m trying to save energy. My hands are cold! I have 4 radiators turned on, out of 8 and the boiler has reached its maximum temperature. If I want it warmer, I have to turn on more radiators. I’m checking my smart meter and it went to over £6 yesterday. Of course, I’m getting over £60 cash back on my direct debit each month but it is uncertainty that is the problem. How much will my energy cost over the coldest months? Uncertainty is the problem with the whole economy, investors like certainty. The chancellor now has a new 30-point plan; the Edinburgh reforms. As an investor, I’m more nervous hearing that! He’s talking about seizing on “Brexit freedoms”. That’s enough to panic the market. They will never learn. We had the morons in charge in September and it’s not much better now. We can still invest though and hope for a slow recovery.

Money supply

The amount of money flushing around the economy has been reduced by high-interest rates and energy costs but investors haven’t been hit as hard here in the UK as in the US. I decided to buy Associated British Foods this week. They have increased their prices in a competitive environment and are opening new Primark stores. I’ve gone against the thinking of analysts who rate ABF as a ‘hold’ but I think there is a lot of upside. It is certainly large enough to weather this economic storm well and will benefit from the Christmas increase in trade.

White stuff

Yes, we are expecting the land to be covered with that cold and horrible white stuff soon. I hope it doesn’t come before Christmas! It will increase our energy usage but hopefully not too much more than now. It is below freezing all through the day now. If it goes further below freezing then we will see our smart meters show higher energy bills. I do get a few nice photos when it snows though! I have plans for Christmas but guests will be coming before the big day. Being a photographer makes you aware of how much natural light there is and that depends on the weather and so has made me quite good at predicting the weather. I think we could have snow at Christmas or just after Christmas so I am preparing to have a Christmas at home cooking my Christmas dinner and indulging myself with chocolate and other goodies. My freezer is fully stocked and I have plenty of alcohol to see me through a cold period! I’ve changed my investments to a more defensive stance so we just have to wait and hope the government doesn’t do anything really stupid between now and spring!

Finally, China is adopting more sensible covid policies so look east to invest too. I would stay away from crypto, when times are uncertain people want certainty; you don’t find that with crypto.


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