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Could UK inflation be in double digits next year? I’m trying to protect myself with this dividend paying ETF

financialnews1 on December 1, 2021

According to the Office for National Statistics the UK inflation rate rose to 4.2% in October. Demand for oil and gas is pushing up energy bills across the world. Shortages of many goods, because of factory shutdowns due to covid restrictions, are pushing up prices. If this trend continues then we could easily see double-digit inflation next year.

My plan for protecting myself

I believe that high dividend paying shares can be a hedge against inflation. My thinking is simple. These high dividend paying companies tend to be established firms in stable sectors. In times of rising prices, they should be able to increase the prices of their goods or services and maintain or increase their dividends more than the rate of inflation.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

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For my own portfolio, I’ve always liked ETFs (exchange-traded funds). These are funds that track an index or sector and can be bought and sold like a share through most online brokers. They allow me to invest in multiple companies in a single fund and are usually low cost.

The ETF I’ve been looking recently at is SPDR S&P UK Dividend Aristocrats ETF (LSE:UKDV). This fund tracks the S&P UK High Yield Dividend Aristocrats Index.

This index follows the 40 highest dividend yielding UK firms that have either increased or maintained their dividends for at least seven consecutive years. It also focuses on large businesses since new entrants to the index have to have a market cap of at least $1bn. The companies also have to meet the index’s liquidity requirements.

Companies in this ETF are mostly large blue-chip companies across a variety of sectors such as insurance, mining, and pharmaceuticals. Household names include the likes of Legal & General, Rio Tinto, and GlaxoSmithKline.

The ongoing charge is a very reasonable 0.30%. The current dividend yield is 3.77%

Am I going to invest?

Though it might not appeal to all investors, I like this ETF. It has a high eligibility criterion and is well diversified across sectors.

Although, it’s worth me remembering there are risks. Some of these high dividend paying companies will be established, successful firms that are great at generating free cash flows. However, some will feel they have to maintain high dividends to keep their investors happy when the business is not growing. In the long run, companies like these are unlikely to prosper.

Looking at the performance, the one-year return excluding dividends is about 9% and over five years the fund is down about 9%. However, taking the dividends into account, the fund would have provided me with a decent total return over both time frames.

On balance, given that the UK inflation rate could reach double digits next year, I’m seriously contemplating adding this high dividend paying ETF to my portfolio.

Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices

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Niki Jerath has no position in any of the shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The Ratings Game: PayPal, Square stocks look attractive amid fintech ‘carnage,’ says analyst

financialnews1 on December 1, 2021

Shares of once-hot payment-technology stocks, including PayPal Holdings Inc. and Square Inc., have been hammered in recent months, and one analyst thinks the selloff has gone too far.

BTIG analyst Mark Palmer encouraged investors to “strongly consider buying the dip” on both names as they look for stock-picking opportunities amid the “fintech equity carnage.”

PayPal shares
PYPL,
+1.29%
are off 35% over the past three months, while Square shares
SQ,
-0.76%
are down 22%, and both stocks are down on the year. Meanwhile, the S&P 500 index
SPX,
+1.60%
has gained 2.3% the past three months and rallied more than 23% this year.

Palmer noted that earlier in the pandemic, fintech executives argued that the crisis was driving a permanent shift toward greater digital-payment adoption, but he said that investors now may be wondering whether all that talk of “lasting” changes was “misguided.”

Coming out of the companies’ last earnings reports, “investors seeing suddenly dicey macroeconomic conditions,” including an economic slowdown and rising inflation, “were not inclined to hold the stocks of companies whose volumes and revenues were viewed as vulnerable to a deteriorating operating environment until the next quarterly earnings print,” Palmer wrote in a Wednesday note to clients.

Still, he sees the selloff as overdone as PayPal and Square have lost “almost all the multiple expansion that occurred when the pandemic tailwind was in full force,” despite bright opportunities ahead.

“With speculative froth replaced by reduced expectations that border on despondency in the cases of PYPL and [Lightspeed Commerce Inc.], in particular, we believe it’s worth revisiting the product-market fits that enabled these companies to emerge as market favorites in the first place,” Palmer wrote.

He said Square is “the most compelling” stock within his fintech coverage, as the company’s Cash App has the chance to emerge as a “super app” that bundles various financial services beyond just payments. Palmer is upbeat about the company’s pending deal for buy-now pay-later operator Afterpay Ltd.
APT,
-2.16%,
as well as its bank charter, which gives Square “the flexibility that others will lack” in building out financial offerings.

Palmer also likes Lightspeed shares
LSPD,
+0.14%

LSPD,
-0.27%,
noting that the company took advantage of stock-price appreciation earlier in the year to make acquisitions. Shares took a hit later in 2021, however, after a short seller charged that the company inflated some of its metrics, and after the company’s most recent earnings report showed “tepid sequential customer growth.”

While that earnings report initially “may have appeared to validate the thesis of the activist short seller who had been making noise about the company during the weeks leading up to the print,” Palmer thinks investors may have overlooked a few key positives. For one, while Lightspeed’s net customer additions may have disappointed, that figure reflected “elevated churn and subscription pauses stemming from renewed lockdowns,” whereas gross customer additions were strong.

Another beaten-down stock that looks attractive in Palmer’s view is PAR Technology Corp.
PAR,
+4.93%,
which was off 37% from its all-time high as of the publication of Palmer’s report. The stock’s current valuation “fails to reflect the fact that its end-to-end restaurant technology offering is exceptionally well positioned to generate sustained strong growth by converting a significant portion of the 70% of the enterprise restaurant market that continues to use legacy cash registers and in-store servers over to its cloud-based offering,” he wrote.

Finally, he sees potential in some smaller fintech stocks that have been unloved as of late and that could wind up as acquisition targets. These include Repay Holdings Corp.
RPAY,
+1.04%,
i3 Verticals Inc.
IIIV,
+3.11%,
Paya Holdings Inc.
PAYA,
+2.17%,
and EVO Payments Inc.
EVOP,
+4.03%

Coronavirus Update: U.S. to tighten testing requirements for travelers in light of omicron variant, and analysts expected limited authorization of Merck antiviral

financialnews1 on December 1, 2021

The U.S. is planning to beef up testing requirements for international travelers entering the country in the light of the new omicron variant of the coronavirus that causes COVID-19, including shortening the time a test must be taken prior to travel.

The precise protocols are still being finalized ahead of a speech by President Joe Biden planned for Thursday on the nation’s plans to control the COVID-19 pandemic during the winter season, the Associated Press reported, citing a senior administration official who said some details could still change.

Among the policies being considered is a requirement that all air travelers to the U.S. be tested for COVID-19 within a day of boarding their flight, compared with the current regimen that allows for a test to be taken within three days of boarding.

“CDC is evaluating how to make international travel as safe as possible, including pre-departure testing closer to the time of flight and considerations around additional post-arrival testing and self-quarantines,” Centers for Disease Control and Prevention Director Dr. Rochelle Walensky said Tuesday.

Other possibilities include requiring testing after arrival and even forcing people to quarantine. The U.S. reopened its border to fully vaccinated travelers on Nov. 8.

For now, further testing is required to determine whether omicron, which was first reported by scientists in South Africa and was declared a “variant of concern” by the World Health Organization last Friday, is more transmissible, more lethal or resistant to current vaccines and treatments.

The WHO is urging leaders to step up surveillance and sequencing, and encouraging people to get their vaccine shots and stick with mitigation measures like wearing a face mask in public, socially distancing and washing hands frequently.

The strain has been found in more than 20 countries and many have moved to restrict or outright ban travel from South Africa and neighboring countries. . Dr. Anthony Fauci, the top U.S. infectious disease expert, said more would be known about omicron in two to four weeks as scientists grow and test lab samples of the virus.

In other medical news, a U.S. Food and Drug Administration advisory panel ended a meeting Tuesday by narrowly voting to recommend Merck’s COVID-19 pill for adults at high risk of hospitalization and death. The panel voted 13 to 10 in favor of authorizing the treatment called molnupiravir.

But analysts said they now expect nothing more than a “tepid” authorization from the FDA, which is not obliged to follow the panel’s recommendations, although it often does, after doctors raised questions about the drug’s efficacy and safety profile, particularly among people who are pregnant, as MarketWatch’s Jaimy Lee reported.

“The near split vote reflects concerns over molnupiravir’s modest clinical efficacy, with results in the post-interim period contrasting with the more positive interim results that led to early study stoppage,” SVB Leerink analysts told investors on Wednesday. “We expect these concerns to follow the therapy and limit uptake particularly when alternative therapies become available.”

Merck
MRK,
+2.27%
first shared interim data back in October showing molnupiravir can reduce the risk of hospitalization and death by 50%. The news exhilarated just about everyone. Markets soared, and physicians applauded the arrival of a promising new tool in the pandemic. 

But then two things happened: Pfizer
PFE,
-0.24%
shared interim data in November for its own COVID-19 pill that showed Paxlovid reduced the risk of hospitalization and death by a remarkable 89%, and then Merck released full data the day after Thanksgiving that demonstrated the drug doesn’t work as well as we thought—it can reduce hospitalization and death by 30%, not 50%. 

Read now: ‘Don’t freak out’: Omicron is bound to disrupt supply chains. The question is, how bad will it be?

President Biden said Monday that his administration was working with officials at Pfizer, Moderna and Johnson & Johnson to develop contingency plans for vaccines or boosters in case they are needed to combat the Omicron variant. Photo: Oliver Contreras/Bloomberg

The WHO’s 194 member countries agreed unanimously to adopt a resolution to develop a new accord for handling future pandemics, AFP reported. The agreement came at a special meeting in Geneva.

“The adoption of this decision is cause for celebration and cause for hope that we all need,” WHO chief Tedros Adhanom Ghebreyesus said in closing the three-day gathering.

The U.S. is still averaging almost 900 deaths a day from COVID, according to a New York Times tracker, and cases and hospitalizations are undesirably high. Michigan continues to lead other states by new cases measured on a per capita basis, averaging more than 8,000 a day.

The CDC’s vaccine tracker, meanwhile, is showing that 197 million people living in the U.S. are fully vaccinated, equal to 59.4% of the overall population. That number is crawling slowly higher after being static for weeks.

See: Confused about whether to get a COVID booster? Here’s what to know

Scientists and vaccine makers are investigating Omicron, a Covid-19 variant with around 50 mutations, that has been detected in many countries after spreading in southern Africa. Here’s what we know as the U.S. and others implement travel restrictions. Photo: Fazry Ismail/EPA-EFE/Shutterstock

Elsewhere, the head of the European Commission, Ursula von der Leyen, said Wednesday the EU must consider mandatory vaccination over the new omicron variant, the Guardian reported. on der Leyen said the EU’s 27 member states should rapidly deploy booster doses and a commission communiqué backed countries that are temporarily enforcing pre-travel PCR tests even within the bloc’s borders.

The EU will start rollout of Pfizer and BioNTech’s
BNTX,
-3.34%
COVID-19 vaccine version for five- to 11-year-old children will begin Dec. 13, one week earlier than previously planned, Germany’s health ministry said on Wednesday, as Reuters reported.

Marcus Lamb, head of U.S. Christian network Daystar, who railed against COVID vaccines, has died after contracting the illness, the Washington Post reported. The 64-year-old Lamb’s network made the virus a huge focus during the pandemic, calling it a satanic attack that should not be treated with vaccines.

Saudi Arabia became the first country in the Persian Gulf to detect a case of omicron, Al Jazeera reported. The case was in a Saudi national who had traveled home from a North African country.

Japan’s main airlines halted new reservations from overseas on Wednesday until the end of December after detecting a second omicron case, also from Reuters. The move came at the request of the transport ministry, which has also requested foreign airlines to halt to all such reservations.

Don’t miss: ‘Vaccine’ chosen as word of the year by Merriam-Webster

Latest tallies

The global tally for the coronavirus-borne illness climbed above 2623 million on Tuesday, while the death toll edged above 5.21 million, according to data aggregated by Johns Hopkins University.

The U.S. continues to lead the world with a total of 48.6 million cases and 780,244 deaths. 

India is second by cases after the U.S. at 34.6 million and has suffered 469,247 deaths. Brazil has second highest death toll at 614,681 and 22.1 million cases.

In Europe, Russia has the most fatalities at 271,091 deaths, followed by the U.K. at 145,414.

China, where the virus was first discovered late in 2019, has had 111,353 confirmed cases and 4,809 deaths, according to its official numbers, which are widely held to be massively understated.

Here are 2 penny stocks to buy in 2022!

financialnews1 on December 1, 2021

Some penny stocks have excellent potential for growth in the long term. Despite this growth potential, they also have more risks compared to larger established stocks. I have identified two penny stocks to buy in 2022 for my portfolio.

I would want to buy these soon or early in 2022 as they could offer lucrative returns over the longer term. As the year progresses, their prices could rise higher so I see an opportunity to get in early, while they are cheap and add them to my portfolio.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Definition and risk

Sometimes referred to as penny shares, these are stocks that trade with a share price below £1. The firms also have a market capitalisation of below £100m usually. In most cases, these firms are small, lower-valued businesses. Due to this, there is a higher element of risk involved. The reward can also be higher if things go to plan based on product and services offered and performance. 

It is worth noting some of the general risks associated with penny stocks. Firstly, there is usually scare information available about these firms, as they aren’t followed by many research analysts. I like to do lots of research and due diligence before I buy any shares. Often, these shares either simply don’t have enough information out there or it come from sources that I wouldn’t consider credible. This can be a red flag that puts me off.

Next, penny stocks can often have a lack of history due to the fact they are newly formed. I understand past performance is not a guarantee of the future but I review it as a gauge when reviewing investment viability.

Finally, these shares can often have a lack of liquidity meaning they have little cash for the business to invest into product launches, research and development, and other activities. Penny shares can often be victims of stock price manipulation too. This can happen when someone buys a large amount of stock, hypes it up, and then sells it after other investors find it attractive.

Penny stocks to buy #1

Seeing Machines (LSE:SEE) is a tech stock based in Australia. It specialises in artificial intelligence (AI) tech to help reduce transport-related accidents with real world applications. This tech is applied in automotive, rail, aviation, and off road sectors. Seeing Machines has a global presence already and can count some major names among its customers. These include Emirates Airlines and General Motors.

As I write, the Seeing Machines shares are trading for 11p. At this time last year, the shares were trading for 5p, which is a 120% return. I am a fan of tech stocks generally so when a penny stock is on my radar with new and exciting tech applications, I take a good look at it. So far Seeing Machines looks an exciting prospect for such a cheap price. It seems to be using technology to solve a real problem and save lives.

Seeing Machines released year-end results last week, which made for excellent reading. Revenue increased 18% compared to last year and profit increased by 44%. Net cash also increased, which will solidify its balance sheet. Operationally, it reported its tech was now implemented in further General Motor’s models and new strategic deals were close to being signed off with other manufacturers of transport modes. This will boost performance in 2022.

Seeing Machines also has a decent track record of performance. I can see that revenue and profit have been increasing year on year for the past four years.

All penny stocks have risks. Seeing Machines could be out-muscled by larger tech firms that might decide enter the same space, despite its good progress to date. Furthermore, share prices can be volatile for small caps. Seeing Machines is trading close to all-time highs, so any negative news could cause a major shock to the share price.

Overall I would happily add Seeing Machines shares to my portfolio for 2022. I believe it is an exciting company at a cheap price with some excellent fundamentals to date behind it. I wouldn’t be surprised to see the share price continue to climb in 2022.

Pick #2

Zephyr Energy (LSE:ZPHR) is an investment platform designed to undertake economically attractive gas and oil projects. It is designed to focus on developments in the Rocky Mountain region of the US. Zephyr was formed by individuals with lots of experience in the gas and oil industry. 

Part of my bullish stance on Zephyr stems from oil and gas demand. The demand for both is high right now and a small cap like Zephyr could capitalise. Oil demand may be declining in the very long term but for now there is lots of demand, especially as the world recovers from the pandemic.

As I write, shares in Zephyr are trading for just over 6p. A year ago shares were trading for less than a penny, at 0.63p. That equates to a return of over 800%. Penny stocks can often experience huge share price increases in a short space of time so I am not getting too excited.

This year has been a particularly fruitful one for Zephyr. A re-brand and new management team have renewed focus and strategy since 2020. It has also made significant drilling progress in some of its prominent sites, especially one in Utah for which it has a lot of expectations. At the site drilling operations had been completed, it hit primary and secondary targets, and there were signs of natural gases and oil. A further update since points to the finalisation of well design so things are looking good.

Zephyr does come with risks. Like Seeing Machines, it is a very small fish in a large pond and could easily be out muscled and outmanoeuvred by a larger firm if they entered the same space geographically. Finally, Zephyr’s progress is based on projections to date rather than tangible results, which is a credible threat to any investor returns.

Overall, for 6p per share, I would happily add a small amount of shares to my portfolio. I would expect the share price to rise in 2022 and beyond. I believe my investment could grow and offer me a return in the long term, especially if some current projects begin to yield tangible results by way of oil and gas.

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Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

: Conservative Republicans reportedly plot government shutdown over vaccine mandate with Friday deadline looming

financialnews1 on December 1, 2021

Conservative Republicans are privately plotting to force a partial government shutdown Friday in an effort to defund the Biden administration’s vaccine mandate on the private sector, Politico reported Wednesday, citing multiple GOP sources.

Current funding expires Friday at midnight, and without a stopgap budget, the government would partially shut down — potentially resulting in furloughs for hundreds of thousands of federal workers, delayed tax refunds and economic data, and shuttered national parks and monuments.

The House of Representatives could vote as soon as Wednesday on a stopgap measure, and Senate Minority Leader Mitch McConnell, the Kentucky Republican, predicted Tuesday there would not be a shutdown.

Meanwhile, the Politico report says that a group of Senate GOP conservatives is planning to object to quick consideration of a continuing resolution, or CR, to extend funding into early next year unless Democratic leaders agree to deny money to enforce the mandate.

Because of the tight schedule, and Senate rules that require unanimous consent to move quickly, senators believe they’ll be able to drag out the process well past midnight Friday, Politico wrote. Republican Sen. Mike Lee of Utah told the publication, “I’m sure we would all like to simplify the process for resolving the CR, but I can’t facilitate that without addressing the vaccine mandates.”

Read more: Congress faces shutdown deadline, hurdles for Biden’s Build Back Better plan

The Democratic-run House reportedly was not expected to vote on a CR on Wednesday due to McConnell not agreeing to a funding date.

At least one longtime former Capitol Hill GOP aide, meanwhile, said he didn’t expect a shutdown.

U.S. stock benchmarks
SPX,
+1.49%

DJIA,
+1.16%
advanced Wednesday in the wake of the the prior session’s selloff, which was blamed on expectations for faster Federal Reserve tapering as well as worries surrounding the omicron variant of coronavirus.

6 Ways to Save Money on Holiday Travel

financialnews1 on December 1, 2021

Of Americans who plan to put 2021 holiday travel expenses on a credit card, the average they plan to charge is $1,471, a September 2021 NerdWallet survey found.

That’s a lot of money to spend on flights and hotels, especially when you consider that only 21% of those surveyed say they’ll pay it off in the first statement. This data is according to an online survey commissioned by NerdWallet and conducted by The Harris Poll of more than 2,000 U.S. adults 18 and older, among whom 780 (38.5%) plan to spend money on flights/hotel stays during the 2021 holiday season.

How can you minimize those costs if you’re traveling somewhere by plane? Here are six ways you can save money on holiday travel.

1. Use miles or points for flights

During the COVID-19 pandemic, many airlines loosened their change and cancellation policies, especially for bookings paid in cash. Nonetheless, if you need to cancel and rebook, you will have to pay the fare difference if the price of the flight increases.

However, when you book a flight with miles on an airline with an award chart, you might not end up paying extra miles. In this case, the cost is based on the category, not the dollar value of the flight ticket. So even if you make a last-minute change, the price in miles on both tickets may be the same.

There are a few exceptions. On some airlines, like Southwest, Delta or JetBlue, the number of miles needed for an award flight are directly linked to the cash cost and demand of the ticket. In these cases, you will probably end up paying more miles than you did originally if you rebook.

2. Be flexible with your travel dates

In general, you’ll be able to find better deals if you don’t fly during popular times. For example, a flight from New York to Miami might cost more miles if you fly on Friday than if you fly on Thursday. Returning home on a Sunday night may cost more than on a Monday night.

Additionally, if you’re going away for any holiday, it’s usually cheaper to fly on the day of the holiday (or the evening before) rather than a few days before. For example, a nonstop one-way flight from New York to Paris during Christmas week costs $868 on Dec. 22 or $910 on Dec. 23 this year. However, those flying on Dec. 24 or Dec. 25 will have to pay only $482 or $563, respectively.

3. Use free night benefits on hotel award stays

There are also benefits to using points for hotel stays. Marriott, Hilton and IHG offer a fifth-night-free benefit when you book a consecutive four-night stay using points. This benefit doesn’t apply to cash bookings.

So if you’re planning a winter vacation, look into some properties with any of these hotel groups, then check if you have enough points to cover a four-night award stay. If you don’t, consider applying for a hotel credit card — you could earn the points you need from the welcome offer.

Booking a hotel stay on points is a great way to save money, especially on longer trips.

4. Use a credit card that provides travel insurance

Travel insurance protects you and your nonrefundable deposits from emergencies that might derail your vacation. However, these policies can cost hundreds of dollars and they’ve only gotten pricier in recent years. According to Squaremouth, a travel insurance comparison engine, trip insurance purchases through the site have increased by 300% from 2020 and 70% from 2019.

Some credit cards offer free travel insurance when you book the trip using your card. Research what travel insurance coverage is offered by your credit card. If you already get free travel insurance from your credit card, you can save a lot of money by not having to buy separate coverage.

Although your card’s coverage may not be as comprehensive as a stand-alone travel insurance policy, it may be enough. On most credit cards, medical coverage is not included in the free travel insurance policy provided. If this applies to you, consider purchasing stand-alone travel medical insurance. A medical-only policy may be cheaper than a comprehensive travel insurance plan.

5. Use a credit card that waives foreign transaction fees

If you plan on going abroad and you don’t have a credit card that waives foreign transaction fees, you may be stuck paying extra. An average foreign transaction fee of 3% of the purchase price is added each time you swipe your card. These fees can quickly add up, and frankly, you can avoid them.

There are plenty of credit cards, including no-fee cards, that waive foreign transaction fees. See if the card in your wallet already waives these fees. If it doesn’t, consider applying for a card that offers 0% foreign transaction fees.

6. Use a bank that refunds ATM fees

When you’re traveling abroad, you may find yourself in a situation where credit cards aren’t accepted so you’ll need to pay in cash. If you don’t have a bank account that reimburses ATM fees, you may be stuck paying two sets of fees: a fee charged by the ATM you’re using and a fee charged by your bank to withdraw cash at a different bank’s ATM.

These fees can fluctuate and add unnecessary extra costs to your trip. To avoid this scenario, open an account with a bank that reimburses ATM fees.

You can save money on holiday travel

If you want to save money on your holiday travels, making strategic changes to your approach can make a big difference. First, consider booking flights with miles and hotel stays with points. Doing so will not only offer extra flexibility, but it can also unlock benefits like a fifth night free when booking four award nights at a hotel.

In addition, use the perks you already have from your bank and credit card issuer to avoid paying for travel insurance, foreign transaction fees and ATM fees. These tweaks will allow you to save money on holiday travel.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2021, including those best for:

Economic Report: U.S. manufacturers growing fast but still struggling with shortages, ISM finds

financialnews1 on December 1, 2021

The numbers: American manufacturers are pumping out goods as fast as they can to meet strong customer demand, a new survey showed, but ongoing labor and supply shortages have snarled production and are feeding the biggest surge in U.S. inflation in decades.

A closely followed index of U.S.-based manufacturers rose to 61.1% in November from 60.8% in the prior month, the Institute for Supply Management said Wednesday. That matched the forecast of economists polled by The Wall Street Journal.

Any number above 50% signifies growth.

Read:Consumer confidence sinks to 9-month low on inflation and Covid worries

Big picture: Manufacturers — indeed most companies — are in a odd spot.

They have plenty of demand from customers for new cars, appliances, computers and the like. Yet businesses can’t make enough products owing to a major shortages of labor and supplies.

These bottlenecks have forced companies to pay more and contributed to the biggest surge in U.S. inflation in 31 years.

A full economic recovery and and lower inflation is unlikely until these shortages ease, but they are likely to persist well into next year. The Federal Reserve has become so worried it’s stopped calling the burst of inflation “transitory.”

Key details: New orders and production both rose in November. The indexes topped the 60% mark.

Employment also increased again.

The ISM index is compiled from a survey of executives who order raw materials and other supplies for their companies. The gauge tends to rise or fall in tandem with the health of the economy.

Market reaction: The Dow Jones Industrial Average
DJIA,
+1.15%
and S&P 500
SPX,
+1.49%
rose in Wednesday trades. Stocks have retreated recently from record highs on worries about the omicron strain of the coronavirus and surging inflation.

The FTSE 100’s most hated shares! Should I buy them?

financialnews1 on December 1, 2021

When it comes to investing, following the herd instead of doing my own analysis is dangerous. I can end up buying a dud that costs me a fortune. I can also miss a sparkling investment opportunity that the broader market has missed.

That’s not to say that observing the trades of hedge funds and institutional investors is a bad idea, of course. The decisions of these heavyweight operators are backed by bucketloads of experience and considerable financial clout.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

I’ve looked at shortracker.co.uk to root out the FTSE 100 shares that have attracted the most amount of short selling from these sorts of investors. Shorting involves borrowing and selling shares one doesn’t own in order to to rebuy them at a lower price later on. This allows the shorter the chance to make a meaty profit.

Here are two of the most-shorted stocks on the FTSE 100 today. Should I give them short shrift or buy them for my Stocks and Shares ISA?

J Sainsbury

As I type, around 3.5% of J Sainsbury (LSE: SBRY) shares are currently shorted, putting it second on the list of most-shorted FTSE 100 stocks.

To me this doesn’t come as a surprise. Worries over supply chains and the prospect of half-empty shelves over the critical Christmas period might be grabbing the headlines today. The biggest threat to J Sainsbury, however, comes from the intensifying competition it faces from discounters Aldi and Lidl, online-only players like Amazon and established operators such as Tesco.

Sainsbury’s has invested huge amounts in its online channel to capitalise on the e-commerce boom and take the fight to its rivals. However, the supermarket has a heck of a fight on its hands to stop losing market share as its competitors steadily expand. The risks here remain considerable.

IAG

Around 3.2% of International Consolidated Airlines Group (LSE: IAG) shares are currently shorted. This puts it third on the list of most-shorted FTSE 100 shares. And I don’t think it’s a surprise why: the fast-spreading Omicron virus has raised the prospect of fresh lockdowns that could batter the aviation industry’s recent recovery.

There’s a lot I like about IAG. I like its leading position in the lucrative transatlantic market. I also like its rising presence in the rapidly-expanding low-cost segment (though a competition probe into its planned acquisition of Air Europa could scupper its plans here). These qualities could help deliver significant earnings growth in the years ahead.

However, it’s also true that IAG faces a number of significant risks. The threat posed by the ongoing Covid-19 crisis isn’t the only danger. I’m also concerned about the prospect of elevated fuel prices as crude prices soar. Then there’s the issue of intense competition that IAG has to find a way to overcome.

IAG had net debt exceeding €12bn as of June. In the long term this could significantly hamper its ability to invest in its operations for future growth. In the short term it could prove catastrophic if IAG has to ground its planes again en masse.

I won’t be buying Sainsbury’s or IAG shares for my ISA today.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!


John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

: After high hopes for Merck’s COVID-19 pill, Wall Street now expects a ‘tepid’ authorization

financialnews1 on December 1, 2021

It’s likely that Merck’s COVID-19 pill will be authorized in the U.S. this month even though Wall Street’s interest has cooled and physicians have raised questions about the drug’s efficacy and safety profile, particularly among people who are pregnant.

Shares of Merck & Co. Inc.
MRK,
+1.62%
rose 1.6% in trading on Wednesday, the day after an advisory panel recommended that the Food and Drug Administration authorize molnupiravir in a narrow 13-10 vote. 

“The near split vote reflects concerns over molnupiravir’s modest clinical efficacy, with results in the post-interim period contrasting with the more positive interim results that led to early study stoppage,” SVB Leerink analysts told investors on Wednesday. “We expect these concerns to follow the therapy and limit uptake particularly when alternative therapies become available.”

The company, which is developing molnupiravir with the privately held Ridgeback Biotherapeutics, is seeking authorization in adults who have tested positive for the virus and are at high risk of hospitalization and death. Treatment is expected to begin within five days of symptoms. 

If authorized, it will be the first oral pill that can treat COVID-19. 

Analysts now expect the FDA to restrict who can take the drug for safety reasons, potentially limiting molnupiravir to people older than 60 years old or excluding pregnant women, women of childbearing age, and male partners. Some FDA panelists suggested that women have to have a negative pregnancy test to get the pill. 

Mizuho Securities analysts expect the FDA “will likely limit authorization to nonpregnant adult population.”

Wall Street had a muted response to the panel vote—and now to the drug, in general. 

Raymond James’ Steven Seedhouse described the likely authorization as “tepid” and said “it will likely be an uphill battle for full approval particularly given the availability of myriad neutralizing antibodies and likely Paxlovid (another oral medication with seemingly lesser tox concerns) soon.”

(Pfizer Inc.
PFE,
-1.12%
is developing Paxlovid, an oral COVID-19 pill that is also expected to be authorized this year. The same FDA panel has not yet scheduled the advisory committee meeting for this drug but is expected to do so this month.)

Merck first shared interim data back in October showing molnupiravir can reduce the risk of hospitalization and death by 50%. The news exhilarated just about everyone. Markets soared, and physicians applauded the arrival of a promising new tool in the pandemic. 

But then two things happened: Pfizer shared interim data in November for its own COVID-19 pill that showed Paxlovid reduced the risk of hospitalization and death by a remarkable 89%, and then Merck released full data the day after Thanksgiving that demonstrated the drug doesn’t work as well as we thought—it can reduce hospitalization and death by 30%, not 50%. 

Merck’s stock performance over the last two months reflects much of these ups and downs. The company’s stock closed at $81.40 on Oct. 1, the day it announced the interim data, and marking the first time the stock closed higher than $81.00 since mid-January. But then shares tumbled 14.9% in November, the biggest monthly decline since dropping 15.2% in February 2009.

Merck’s stock is down 3.9% so far this year, while the broader S&P 500
SPX,
+1.29%
is up 21.6%.

Revealed: The 3 best-performing FTSE 100 stocks of 2021 (so far)

financialnews1 on December 1, 2021

Image source: Getty Images

Despite recent wobbles, 2021 has been a good year for the FTSE 100. The UK’s largest share index is up a healthy 9% since the turn of the year, and up 12% over the past 12 months. But which stocks have been the best individual performers? Let’s take a look.

What are the best-performing FTSE 100 stocks of 2021?

According to Hargreaves Lansdown, the three best-performing stocks over the past 12 months are Ashtead Group plc, Meggitt, and Croda International plc. Let’s take a look at what these companies do and how their share prices have performed in 2021 so far.

1. Ashtead Group plc (up 90%)

Ashtead Group is a London-based industrial equipment rental company. The company serves customers in the UK and across both Canada and the United States, with the majority of its revenue being earned via its ‘Sunbelt Rentals’ brand across the pond.

While not a household name amongst consumers, Ashtead Group plc is the biggest riser of the FTSE 100 over the past 12 months. Its value has shot up a massive 90% since December 2020, while so far in 2021, its share price has climbed 76.5%.

Despite its share price dropping by roughly £3 during July and September, Ashtead’s value has avoided big drops in 2021.

2. Meggitt (up 88%)

Another FTSE 100 winner in 2021 is UK-based Meggitt. 

Meggitt has over 9,000 employees across 14 countries and is involved in the aerospace and defence sectors. According to its website, Meggitt supplies numerous critical components, such as wheel and brake systems.

So far in 2021, the Meggitt share price has climbed by 66%. Over the past 12 months, the company’s share price is up 88%. 

Meggitt’s value rocketed by 60% in August, when the company revealed it had agreed a £6.3 billion takeover by a US firm Parker-Hannifin. However, UK regulators have since indicated that they will look into the deal. 

3. Croda International Plc (up 69%)

Croda International plc is another company that has had a fantastic 2021 so far. The UK-based chemicals company supplies ingredients and technologies to some of the biggest brands in the world.

Croda’s share price is up 69% over the past 12 months, and up almost 50% in 2021.  

Despite a slump in late September to early October, Croda’s value has generally headed in an upward direction for the majority of 2021.

What are the worst-performing FTSE 100 stocks?

Unfortunately, not every company will be offering a toast to 2021. Here are the three worst-performing FTSE 100 stocks over the past 12 months. 

1. Flutter Entertainment (down 25%)

So far, 2021 has been a year to forget for Flutter Entertainment.

The Irish bookmaking holding company, created following the merger of Paddy Power and Betfair, has seen its share price slump 25% over the past 12 months. So far in 2021, its share price is down 32%.

2. London Stock Exchange Group (down 19%)

The London Stock Exchange Group has seen its share price plummet by almost 20% over the past 12 months. So far in 2021, its share price is down 27%.

The company owns the London Stock Exchange and also has majority stakes in LCH and Tradeweb. 

3. Ocado Group plc (down 18%)

Ocado Group plc is another company that’s suffered in 2021. Over the past 12 months, its share price has slumped 18%, and it’s dropped 26% since the turn of the year.

Ocado is a well-known online grocery and logistics business that makes its money by licensing its technology to a number of global retailers.

What do these stats tell us?

With one member of the FTSE 100 having almost doubled its share price over the past 12 months while another has lost a quarter of its value, it’s clear to see that individual companies within the index have experienced vastly different fortunes in 2021.

Some investors may look at individual stock performances to determine which companies may be under or overvalued. 

On a similar note, individual stock performances may also help investors determine which stocks have been volatile over the past year or so. Generally, volatile stocks offer more opportunities to profit from short-term swings. However, volatile stocks also provide more opportunities to suffer big losses. Remember that the past performance of a stock does not give an indication of future performance!

Are you planning to invest? Take a look at The Motley Fool’s list of the top-rated share dealing accounts. If you’re an investing newbie, then these investing basics can help you learn the ropes.

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About the author

Avatar for Karl Talbot

Karl Talbot

Karl is a writer specialising in investing and personal finance content. He regularly contributes articles on savings, bank accounts, mortgages, and loans. He was previously a Personal Finance Writer for MoneySavingExpert.


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