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Watching and watchlists. #financefriday

Like most small investors, I have a watchlist of companies I might invest in. Barclays is down today, but I think BARC is worth watching. It is on 159 now and I think anything under 175 is a reasonable price. Beazley is worth putting on your watchlist too. They made bad investments last year, but their underlying performance is good. I’m making a slight loss on Beazley. Lloyds is worth watching, they are doing share buybacks, so they are undervalued now. When the economy picks up, we will see Lloyds rising to a 100p

I think there is a good chance that the UK economy will start to recover later this year and inflation will begin to fall. Many employers are giving in to pay demands so that will drive inflation, but many workers are settling for below-inflation pay rises. Some employers give lump-sum bonuses to tide workers over this period of inflation.

Associated British Foods (ABF) is recovering from its pandemic-related problems and is still quite resilient despite holding down prices at Primark. Holding down prices will increase market share and they will make increased profits in the future.

With mortgage rates rising, the property market isn’t doing so well, but people are still buying in the more affluent areas. I have Taylor Wimpey on my watchlist for when the economy picks up.

People have been watching their discretionary incomes fall and have had to cut down on leisure or change how they enjoy themselves. That might mean more nights in the pub and fewer going to restaurants. Many people are cooking at home instead of eating out or eating takeaways. People are spending less but shifting their spending too. They are looking for bargains and special offers and switching to cheaper alternatives.

People are constantly watching for a bargain or a good deal now. That applies to their shopping for goods and services and to their investments.

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