Good morning from Paul, and from about 08:30 Roland will be joining me. Graham & his family have come down with a bug, so sending them our best wishes to get well soon.
All done for today!
Considerable volatility in the US market again this week, with the Dow last night doing a c.900 point (2%) fall, then recovering all of the drop intra-day. What's going on? It seems to be uncertainty over inflation and interest rate expectations. I do think it's important not to let day-to-day volatility shake me out of good shares that I'm invested in, so I ignore it.
In our small-mid caps space, we're seeing some bargains appear again, as readers were discussing in yesterday's report. If we can get good companies, that are trading well, 10-20% cheaper than a week or two ago, then that's a good thing! BLASH (buy low and sell high) is the golden rule.
I suspect the UK small caps space is being disrupted by the anticipation of higher CGT in the late October budget. Hence people feel incentivised to bank profits now, to lock in a potentially lower rate of CGT. Although maybe some of the sellers will be wanting to buy back in, so this could just be a short-term dip. Again, personally I won't be letting unusual price falls disconcert me, that's more of a buying opportunity than a threat in my view, because the likelihood is that sellers are motivated by tax factors, rather than inside knowledge of poor trading. As always though, it's all educated guesswork, that's what makes investing so fascinating!
UK futures are showing a strong rebound today, as the UK plays catch up with the US strong bounce in later trading. So I'll be hovering over the buy button at the open, with any available scraps of cash I can locate for some possible bargain trades!
Explanatory notes -
A quick reminder that we don’t recommend any shares. We aim to review trading updates & results of the day and offer our opinions on them as possible candidates for further research if they interest you. Our opinions will sometimes turn out to be right, and sometimes wrong, because it's anybody's guess what direction market sentiment will take & nobody can predict the future with certainty. We are analysing the company fundamentals, not trying to predict market sentiment.
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