🐻 Hargreaves Lansdown is the UK's Latest Big Short

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• Prices accurate as of approximately Wednesday 7:15PM BST.

⚡️ Will Liz Freeze Energy Bills?

We can't get away from talking about energy prices, because it's just about all that's in the news right now. Now that Liz has won, I'm expecting we're going to see a big move on bills.

My expectation is that we'll see a scheme implemented in the UK which mirror the one that's already gone through on the Isle of Man. I talked about it a couple of weeks ago, and it's looking more and more likely that we'll all see the same thing happen elsewhere.

The details obviously aren't out yet, but the rumours suggest that the relief will come in the form of a loan to the energy companies (that doesn't fuckin' sit right, for a start) and we'll then pay it back via our bills over the next 10 or 20 years.

I'm not convinced this is a great idea, because it's going to mean inflated bills for potentially decades to come. I was on the bandwagon of using energy company profits as a solution to the problem, but it’s not that simple.

While it's still bullshit that energy companies are making billions and their CEO's are making millions while everyone else is struggling to make ends meet, it's pretty clear that knocking £63 off that figure won't make a toss of difference.

Obviously some suppliers are also producers, and that profit is bundled into the wholesale costs part of the graphic, but it all gets very bloody messy.

🏠 Your Home is Not an Investment

🐻 Bitcoin Getting Crunched

The price of Bitcoin has been getting slammed lately, and it's down over 14% over the past month. That's nothing out of the ordinary for an asset that's down over 53% since the start of the year, but until recently it had been trending slowly upwards.

The most recent falls have seen the price drop back to levels last seen in late 2020, right at the beginning of the epic pandemic bull run.

More noteworthy is the trajectory for Bitcoin dominance. This is the percentage of Bitcoin's market cap relative to the entire crypto sector. It's recently fallen below 40% for the first time since 2018, which, combined with the trend in the Bitcoin price, is used as a buy or sell signal for some investors.

Regardless, the downturn in crypto markets is testing the resolve of hodlers.

🩳 Hargreaves Lansdown One of the UK's Top Shorts

You remember Citadel Advisors? Maybe not, but they were one of the main companies behind the short interest that set off the bonkers Gamestop meme stock frenzy. They've not given up their short game, and they (along with Blackrock) are two of the latest big investment houses looking to profit of of Hargreaves downfall.

This comes off the back of HL's 2022 figures, which saw revenue drop 8% and assets under management drop 9%, and they're now one of the top 10 most shorted companies in the UK.

Stocks are out of the public eye right now because they're not hitting all time highs. We're not seeing content all over social about millionaires being made over night, and this means less cash for companies like HL.

They're also an old school, stuffy player in the retail investing game, which has increasingly become slick and modern. Companies like Trading 212 and eToro are eating their lunch big time.

Rest assured if you have money invest via their platform, they are simply the custodian of your assets. No one is saying they're likely to go bankrupt, but if they did, your money would be safe from the administrators.

🔺 The Hedge Community

Want to chat with likeminded people about money and investing? Want somewhere you can ask your financial questions? I got you. The Hedge Discord server has some great discussion on all things to do with money and investing.

It's not just me rambling on either, we've got some awesome contributors in there who are sharing their resources and thoughts. Click below to join.

🌏 Snippets

• Liz Truss has announced Kwasi Kwarteng as the new Chancellor, and Therese Coffey as the new health minister. She smashes the cigars, so I'm not sure about that one.

• London craft brewer Beavertown has been fully bought out by Heineken after taking minority stake in 2018.

• The average UK house price hit an all-time high of £294,260 in August.

• Pound sterling slides further, hitting its lowest level against the US Dollar since 1985.

• Fracking ban could be lifted in package to bring down energy prices.

See you next week 🚀

Jason