The Christmas season which runs from Thanksgiving to Christmas Day and on to the new year is the most important season on the shopping calendar. The season can count for 50% of profits for the year, as the January and February months typically are the slowest months. The above means much rides on the season. This year the big concern is COVID, how will shopping happen when the country is going through a second wave, knowing the good news in the new year, sometime, vaccines will be available.
In England, Pan Pylas of the Associated Press noted the lights were turned on at Oxford Street but there was little celebrating for many shops have been ordered to close till December 3. During the first lockdown shops were closed nearly 3 months till mid June.
If the lockdown lasts to December 2, Helen Dickinson the chief executive of the British Retail Consortium represents nothing less than a nightmare before Christmas.
Britain has already recorded the most virus-related deaths in Europe with nearly 47,000. The decision has dashed the British economy might recoup by the end of this year a large proportion of the near 25% of output lost in the spring. The British economy is expected to contract a further 10% in November.
The Bank of England has increased its bond buying program by at least L100 billion ($130 billion) to keep a lid on borrowing rates in the markets and to ensure money keeps flowing through the financial system.
Linking to dividend paying stocks, we all follow traditions and expectations in order to make sense of the world. There are things that happen in the economy similar to the world of nature every month and quarter, if they happen as what is considered normal, we all follow the patterns and live life what is considered normal. When there is a only going threat, most of the population will react slowly but eventually they will adjust, when they adjust changes will be made until the next time things are not normal. With dividend paying stocks, we want normal to happen so there are few surprises, this means continually doing homework if alternatives need to be changed in your portfolio.
There are more questions than answers, till the next time – to raising questions.