We’re into lockdown #2 now. Furlough has been extended until March. Lots of bars, cafes, restaurants, and businesses that make our lives nicer, will unfortunately have shut up shop for the last time.
The pub across the road from me has been boarded up since lockdown #1 and was being refurbished. It opened again last week, only to be told it will be closing again. It’s now shut. Hopefully, not for good.
But with the Bank of England injecting more into the economy and the inevitable stimulus from whoever wins the US election it appears stock traders are in for a good ride.
All assets are up – including Bitcoin. The price of this speculative cryptocurrency hit $20,000 in December 2017. Nearly three years on and it’s pushing to $16,000 after puking all the way down to below $3,500.
It’s taken a while, but we may see the eventual highs of Bitcoin tested and the market ready to pile in further.
I still believe that prices mainly move because of stories. As humans, we like to hear narratives. Often the best and most convincing speeches and arguments are loaded with pathos – that is, emotive language – rather than logos, or logic.
Logically, we should be convinced by logic. But the difference between what logically should be and what exists in reality is illogical.
If logic ruled our decision, the market would be efficient, and there would be little volatility in stocks. But logic doesn’t rule our decisions – something the social media giants know all too well (there is an excellent documentary on Netflix called The Social Dilemma which describes how social media platforms are designed to create addictions and engagement).
Emotions will continue to rule. And whilst they do, volatility will continue. Helped by huge amounts of stimulus.
Jubilee Metals Group
Jubilee Metals (LON:JLP) , formerly Jubilee Platinum, is a mining exploration and development company which is focused on PGEs (platinum group elements) and nickel.
The recent update caught my eye and so I bought the stock on the opening bell:
PGM and chrome operations delivered record high quarterly operational earnings of £ 15.17 million (ZAR 332.36 million) surpassing the previous operational record set during the full H1 2020 period
Given at the time the stock was trading at around £130 million market cap if…
