Monday Musings 13/09/2021 – What We Pay For
I am reminded each week that David Stewart, or the Sage of Hampshire, manages to predict the important news stories. Unfortunately, he’s taken his crystal ball with him on holiday so I’m spreading (or diversifying) this week’s Musings to several topics.
The first thought, I hope this is not my last contribution (kind messages of support welcome!), the second is about the launch of the inaugural civilian only mission to orbit the Earth and the third is about some friends who are lucky (or brave enough) to build their own home.
Dealing with the last first, my friends brought a run-down cottage two years ago with plans to knock it down and build their forever home. After working with architects, waiting for planning permission, the whole project was delayed due to the Pandemic. Recently, however, there was good news. They managed to secure the services of a builder who could complete their eco-friendly house. Then the updated estimate for the work landed.
The detail of the estimate is not newsworthy, but my friends found it difficult to understand how, after just 12 months from the original estimate, the cost doubled. After the initial panic and shock, the practicalities of dealing with the impact to their finances came into focus.
I came to think about how the cost of the work could double in 12 months and the impact of inflation, which measures the difference in prices of things we buy over time. The most common measure of inflation is called Consumer Prices Index (CPI). Currently CPI is 2.5%, which means over the last 12 months the cost of things we buy rose by 2.5% whereas for my friends, the cost of their building rose by 100%!
The difference between economic inflation data and the real-world cost of the things reminded me how crucial it is to think about how the changing price of goods and services impact everyone differently.
Then to the brave new world we are about to enter. Civilians going into space for the first time without professional astronauts – a billionaire, physician assistant, a data engineer and geoscientist. What an exciting period of history of space exploration we are to bear witness. Launch is September 15th. I hope one day I get to go and if anyone is feeling generous, Christmas is only 130 days away!
It would be remiss of me not to congratulate Emma Raducanu, an incredible achievement. Just 18 years old, who was competing in the final against a 19-year-old. Emma should be an exciting talent for many years.
|04.01.2021||13.09.2021||% Change||% Change on week|
|FTSE 100||6571.80||7086.23||Up 7.83||Up 0.81|
|Dow Jones||30105.26||34607.72||Up 14.95||Down 0.78|
|Nasdaq||12696.74||15115.49||Up 19.05||Down 0.87|
|S&P||3695.49||4458.58||Up 20.64||Down 0.77|
|NIKKEI||27228.07||30447.37||Up 11.82||Up 0.22|
|Hang Seng||27431.07||25813.81||Down 5.89||Down 1.50|
|Shanghai||3502.13||3715.37||Up 6.08||Up 0.33|
|CAC 40||5584.96||6716.22||Up 20.27||Up 0.79|
|DAX||13733.08||15769.77||Up 14.82||Up 1.02|
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