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

This article will gradually take shape during the day, but is initially here for you to add your comments on the 7 am RNSs.

Estimated timings - I'm mostly done now (at 12:42), but might add a bit more later this afternoon.
Update at 20:18 - today's report is now finished, with a few new brief sections added in the evening.


Second wave?

I'm sure we're all very conscious of the news, showing considerably increased numbers of covid cases in the UK (and elsewhere). Whether it should be called a second wave, or just a continuation of the first, who knows? It doesn't augur well for the colder autumn weather, once we're all inside again, does it?

Should this affect our investing, that's the trickier question? People who panic sold in March, have since missed out on one of the best bull markets ever, and certainly the quickest. Apparently there's still money on the sidelines, of people waiting for another big pullback, which so far just hasn't happened.

Personally, I've decided to focus new positions on companies which have demonstrated that they can ride out, or even trade well, through the last covid/lockdown crisis. Or companies that took a hit, but recovered very quickly, with very strong sales once lockdown was lifted. Also, companies which are strongly financed, and previously paid out big divis, are high up my agenda.

There are some super opportunities to lock in probable future divis of 5-10% p.a. (I like Somero Enterprises Inc (LON:SOM) (I hold) and Headlam (LON:HEAD) (I hold) as good examples of this). In a super-low-permanently interest rates environment, which is increasingly my view of the future. then big and safe yielding shares are likely to become more sought after - buying now locks in a lovely yield, and probably a future capital gain as other investors chase the price higher to get the yield once it becomes more obvious.

I've got enough of my post-covid recovery shares which are looking riskier right now , so am not adding to those positions (e.g. Revolution Bars (LON:RBG) and Ten Entertainment (LON:TEG) and Hollywood Bowl (LON:BOWL) ). Although we're probably only months away from at least the early stages of vaccines, and better treatments. Vulnerable people…

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