The beloved children’s chocolate bar is in the press this week after a price rollback by Tesco saw the price return to 10p after rising over the years since 1994 to a peak of 30p in 2017.
The perhaps not so loved UK equity markets, the largest companies of which are represented by the FTSE 100, have also recently seen a drop in value. Thankfully not back to the levels seen in 1994 (the FTSE 100 fell below 3,000) but we did see a drop of circa 12.5% over 2018, with the FTSE 100 ending the year on 6,728.
Fortunately, we are seeing the beginnings of a recovery with the FTSE 100 already up 3.57% so far this year, more than 1% per week. Investment markets, whether they be equities, bonds, commodities or property, all move up and down depending upon a range of factors.
Unfortunately, the same can’t be said for the price of Freddo, as this is only a short-term price drop and normal pricing will return after just a week of these “buy while stocks last” prices. Perhaps now is a good time to get some of these frogs in your cupboards to use as treats in picnic baskets over the summer. No harm in planning ahead, right?
The question is, do you have that Freddo Feeling when markets present an opportunity to buy in at a lower level, or do you wait for prices to return to normal before taking the plunge?
This article is written by Russell Skinner.