Good morning!

Today I'm planning to take a look at:

2:30pm: Edited this list in response to reader requests.

By the way, I stayed in my first ever AirBnb this weekend: a privately owned, 16th century castle deep in the Irish countryside. Admittedly, not much of the original is left standing from the 16th century. But it was a fun introduction to the world of AirBnb!


Bank of England

In economic news, we are on the cusp of seeing interest rates rise again at the Bank of England, for only the second time since 2008. There is a 90% chance of a rate hike on Thursday, from 0.5% to 0.75%.

Personally, I've been reducing my exposure to GBP-denominated assets in recent months, thanks to the tardiness at the BoE. I now have close to 20% of my portfolio invested in funds which own USD-denominated debt.

Leaving the economic arguments to one side, my viewpoint as an investor is straightforward: I want the biggest returns and yields possible! If the choice is to earn (say) 3% in the US or 1% in the UK, then I don't mind swapping the currency risk and moving funds to US instruments instead.

Long-term, I remain a bull on GBP relative to EUR and perhaps even relative to USD. If we saw several rate hikes along with clarification on trade rules after Brexit, then I still believe we could see a very strong pound Sterling - brilliant news for owners of GBP-denominated assets (like many readers of this report, I suspect), for importers, for British tourists, etc. Not so brilliant for others, of course.



Luceco (LON:LUCE)

  • Share price: 33.8p (-9%)
  • No. of shares: 161 million
  • Market cap: £54 million

Trading Statement

It's an H1 update for this LED lighting manufacturer.

I'm amazed to see that this share price has halved since I wrote about it last, in April.

Since then, there have been two interesting bits of news:

  1. It admitted defeat in the US and announced the closure…

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