Great Britain, a country known for tea drinking & former empires but the real question, Is Great Britain still Great?
More Specifically, Is it a Great Place to Invest!?
With a Government of Poor Communicators, Brexit looking like a mirage and now the global health crisis.
Economic forecasters expect UK GDP to contract by around 10 per cent in 2020 following a tightening of restrictions.
This is worse than many other countries in the G7 , there are mnay reasons for this. Such as a Government of poor comunicators, but also due to the way the UK economy is made up.
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Consumer spending in areas such as cinema, restaurants, hotels and live entertainment accounts for 13% of the economy in the UK, compared with 11% in the US and 10% in the eurozone, according to Goldman Sachs.
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Then we have the night-time economy which is the UK’s fifth-biggest industry, accounting for at least 8% of the UK’s employment and annual revenues of £66bn.
And With increasing restrictions such as 10pm closures for restaurants and Nightclubs closed completely it’s no wonder the UK economy has taken a hit.
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Then we have the FTSE 100 which has been going sideways since it’s plummet during the health crisis despite stimulus.
Wheras the S&P 500 in the US has recovered to Pre Crash levels.
WHat is the reason for this?
Well, that’s mainly due to the lack of tech in the FTSE 100.
As you can see looking at the top 10 holding it mostly includes Oil Companies, such as Shell & BP in addition to financials.
The only companies which seem to be benefiting from this crisis are the pharmaceutical giants such as Astra zeneca which is working on a V shot.
SO I HAVE A CONFESSION TO MAKE TO ALL YOU GUYS, I recently sold off my Entire Holdings in my Vanguard FTSE 100 Index fund!
Now I sold this off at a small profit as Invested into it during the crisis, the original plan was to hold the fund until recovery.
But now my strategy has develop rather than waiting potentially many years for a small upside on the FTSE 100
I could benefit more from re allocated these funds into variety of tech stocks in the US & China.
China will actually see it’s GDP increase in 2020, as it has recovered best from the global health crisis which is extremely ironic.
The Chinese economy advanced 4.9% yoy in Q3 2020, faster than a 3.2% expansion in Q2 but below forecasts of a 5.2% growth.
With a Growing Middle class population China has many tailwinds behind it’s businesses.
However, their are risks such as US china trade tensions & political issues. Also, Chinese stocks have a history of using accounting trickery to inflate their numbers, so that is something to be careful of.
(I have many videos on my favourite Chinese tech stocks you can check out the link below)
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But I’ve not lost Faith Completely in the UK, there are some stocks I still hold individually, so in this video i’m going to outline 3 of my favourites!
Stock Number 3. Rightmove
Stock Number 2. AO
Stock Number 1. Boohoo
(Be sure to check out the FULL STOCK ANALYSIS & DETAILS IN THE VIDEO)
