We certainly could use a market boom this coming year in the UK given the ravages of the pandemic. An economic rebound would work wonders for all concerned, especially the over two million people who have been released from their jobs.
Lockdowns are back in vogue however and pubs, airlines, gyms, restaurants, and retailers are losing their livelihoods. So why are some stock prices going up and up? Well, it is clear for Pfizer, BioNTech, Moderna, and AstraZeneca. Looking ahead, the road to riches for pharmaceuticals might be paved with gold.
Predicting the future
Stock market pundits are willing to call the shots and are even predicting a return of the Roaring Twenties. Be careful, however, of conflicting signals, as there are bound to be losers in the bunch. Just look at Arcadia and Debenhams while Primark stores and supermarket chains are thriving. A mini-boom could turn into a major one.
Demand is out there, but for certain sectors. On the subject, Rishi Sunak, Chancellor of the Exchequer, has spoken. Jobs are at stake and spending will drop accordingly. But those who survive intact will feel financially safer in the new year, after having been super frugal for so long.
With less debt accumulated, these people will start to buy products. Interest rates are low and housing is stable, so it is time to participate. It really comes down to the vaccine rollout and stemming the tide of the pandemic. Maybe taxes will rise. Let’s hope the market stays vibrant, even though it is only an indicator and not the real economy.
It tends to reflect larger and stronger companies, those with a competitive advantage. Others may not fare as well, and higher share prices are not the entire picture. Think of the reduced usage of the rail lines causing concern for investors. Cost cutting may be at hand.
What is ahead for gaming?
Along these lines, the gaming industry may decline if football wagering and online casino spending take a hit. Curbs on football sponsorships and online spending could take a toll on an industry beginning to come back. Watch what happens to the Gambling Act of 2005 as new decisions are put on the table. How many competitors to the US market will be left for dead?
Among the issues of concern are fixed-odds betting terminals, or FOBTs. How much of a problem are they even given the current regulation? They are said to be an exploitative practice along with other VIP schemes that target serial losers.