michael eraklis kashioulis
michael eraklis kashioulis
United Kingdom
6mo
π™’π™π™šπ™§π™š π™–π™§π™š 𝙐𝙆 π™’π™–π™§π™ π™šπ™©π™¨ π™π™šπ™–π™™π™žπ™£π™œ π™£π™šπ™­π™©?? It’s been an interesting few weeks on the UK economic front with inflation continuing its downward march with November cooling to 3.2% as food and other prices eased. That softer inflation backdrop gave the Bank of England room to cut its base rate from 4.0% to 3.75%, marking another step in its recent easing cycle. Although it seems not all members agreed with the scoring at 5 to 4. With falling inflation and easing monetary policy, the UK markets seems to be ending on a particular positive note. One domestically‑oriented stock I have been following for years and is a key UK sentiment reflector for me is Lloyds which has continued to rally all year (currently trading at 97) hitting a 5-year high (yes I wish I didnt close some of our position a few months back but we still hold a little). There seems to be strong confidence in the UK even after the November budget and the FTSE100 reflects this too, sitting really close to its year peak. Looking ahead into 2026 for the UK, the story feels balanced. With inflation expected to continue to edge lower toward the BoE’s 2% target and further modest rate cuts likely (let's see if the data allows it), consumer and business activity could get a bit of a boost, especially if confidence improves and borrowing becomes cheaper across the board. However, underlying growth remains subdued so I’ll be watching how these monetary shifts translate into real‑world activity over the next few quarters. There is definately opportinity to move some more of our portfolio into UK stocks early 2026...
Not investment advice. The author may have financial interests in the mentioned instruments.
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