Good morning, it's Paul here with the SCVR for Christmas Eve.

Preamble from Paul

We're hearing increasingly positive news on covid, and I hope readers have taken advantage of the relief rally this week. It's certainly straightened out (partially) some of the problems in my portfolio. Also, as mentioned in Mon & Tues SCVRs, I've been buying this dip on the basis that reliable data from South Africa seemed to be pointing towards omicron being less deadly than delta.

Rather than being a Santa rally, the surge in some shares this week looks more like a relief rally re omicron, judging from travel & hospitality shares which seem to have rallied particularly well. I nipped in at the opening bell on Tuesday, and bought some Carnival (LON:CCL) and Jet2 (LON:JET2) both of which I think are good companies. Plus of course Saga (LON:SAGA) (I hold) has bounced strongly. Even Boohoo (LON:BOO) (I hold) has come off the recent lows, and I've doubled my position size there this week, despite sitting on running losses which would have paid for a nice 4/5 bedroom house in a pleasant area down South. Never mind, luckily I don't need another house, so have got to be philosophical about these things, there's no point in crying over spilt milk, and I think the share should recover, at least partially.

There are still plenty of bargains out there in my view. Although I continue to see the risk of more profit warnings. We've got ongoing supply chain problems, plus the large number of omicron infections means that lots of companies are struggling with many staff being off sick. More importantly though, it now looks as if the UK (and gradually other countries) should be reaching herd immunity through vaccinations of c.80% of adults, and the remaining 20% having recovered from covid naturally.

There are also now much better treatments for the sick coming on stream, including new anti-viral drugs. Vaccine makers have said they can adapt the vaccines for new variants in about 100 days. Hence could we tentatively be looking at the end of this pandemic? That would be very bullish for shares. Or possibly it changing into something that can be managed, like seasonal flu, with updated jabs each year for those that want them? I think that's how it's…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here