Ongoing coverage of the latest financial and economic news.
And then… at last… Here is my essay on the 100th year of the FTSE.
For 2020, that’s it.
Best wishes for this new year! GW
Some FTSE 100 businesses have had a really good year.
This year, the Scottish Mortgage Investment Trust, which invests in major technology firms such as Tesla and Amazon, is up 109 percent.
Ocado, driven by demand for online food delivery, gained 78 percent, which could fuel demand for its robotic warehouse technology.
For other enterprises, though, it was a year to forget.
This year, IAG, the airline that operates British Airways, dropped 61 percent.
More than half its value was lost by Rolls-Royce, which manufactures and services jet engines. The major losers also included oil giants BP (-46 percent) and Royal Dutch Shell (-43 percent).
As more stores are forced to close due to new regulations to monitor the spread of Covid-19 in the UK, Primark said it would lose an estimated £ 220 million in revenue.
Associated British Foods, the owner of the low-cost fashion chain, said it expects to lose £ 650 million in revenue in the year to September, more than the £ 430 million reported on Dec. 4 after the government said that major cities such as Manchester and Birmingham will have to enter London and the southeast of England in shutting unnecessary shops.
Primark said that from Jan. 1, 253 of its stores will temporarily close just over two-thirds of its stores worldwide…..
Relive a remarkable year’s highs and lows:
Here’s our news report on the U.S. job market’s dismal state:
It contains a sobering instance of the effect of the pandemic on the lives of people:
Before the pandemic, Fernando Comas of Secaucus, New Jersey, worked in the film industry as a video engineer and has been on leave since March until at least 2021.
His advantages were diminished six weeks ago. To address the issue, he has yet to hear back from his state jobs department.
I have a family to feed, a mortgage to pay, a car to pay off, and I’m a single dad of two little girls who depend on me to look after them,”I have a family to feed, a mortgage to pay, a car to pay off, and I’m a single father of two little girls who rely on me to take care of them,” “I’m going to lose everything, I’m probably going to be evicted and I’m going to start going to food banks to get food for my family.”
With the worst slump in decades, 2020 was an exceptionally dramatic year for currencies, followed by a quick rebound as economies started emerging from the pandemic.
I asked Tom Stevenson, Investment Director for Personal Investment at Fidelity International, just before Christmas, what lessons we should learn from this year. This is his advice:
It’s not the same thing for markets and economies.
Stock markets are looking to the future despite existing crises. That is why, even as medical and economic news continued to be grim, stocks have risen so quickly.
Although market timing is never easy and can be risky, buying opportunities such as the one in March are rare, and at such times, good investors must grit their teeth and have the courage of their convictions. Since the bottom, even the underperforming UK market is up more than 25 percent.
The obvious trade is sometimes the correct one.
It was not a difficult decision to go for pandemic winners such as technology, home-based and home delivery stocks and ignore travel, hospitality and retail stocks, and the chance persisted for quite a while after it was detected.
The need to have versatility. A change in sentiment away from defensive growth stocks and towards cyclical stocks that would prosper in a rapid economic recovery was marked by the November rally. This rotation was always likely to be caused by the discovery of a viable vaccine.
Keep in your portfolio some dry powder in the form of some currency. Without it, it is not possible to seize opportunities like the one in March.
In the recent round of restructuring in the ailing local newspaper industry, hundreds of the best-known UK newspapers, including The Scotsman and The Yorkshire Post, were purchased by David Montgomery’s National World for just £ 10.2 million.
JPI Media, which nationally owns 100 local newspapers, including the Edinburgh Evening News, the Lancashire Post, the Sheffield Star and the Sunderland Echo, has acquired