Financial Friends: A Quick Update
23 March 2022
To all Financial Friends
Despite the still gloomy news, funds covered by our latest portfolio indicators of just one month ago are broadly doing better than the average diversified portfolio.
This was the considered favoured portfolio of one month ago;
Consider structuring your portfolio to hold: Index Linked Bonds. Gold and silver. FTSE 100 (on watch). Infrastructure funds. Funds focussing on Consumer Staples Stocks.
Gold and silver funds have risen by 12.44%. Inflation linked UK gilts have surprisingly fallen by 4.25%. Global Infrastructure funds have risen by 8.73% with UK infrastructure funds rising by 2.86%. The FTSE 100 index holding steady up just 0.53%
The average mixed asset fund (traditional diversified) has risen by just under 1%. Overall, those holding conviction portfolios (as above) have strongly outstripped traditional textbook holdings positively.
Horrifically the war continues. Authorities are under pressure to raise interest rates more as time progresses. We are told to expect inflation to hit 10% Covid and its variants are still at least a background threat.
What Now?
The financial scene seems not to have changed that much over the last month since my last commentary. The above structure in bold lettering still feels appropriate. Index linked gilts and those holding global funds of inflation linked bonds may find growth if the threat of greater war arises and inflation is considered to be here for the longer term.
A more defensive mode for those with new money to invest could be to hold funds in cash and have them drip-fed monthly into equity funds. A balance of the bold lettered funds and monthly investment could be for those who think authorities will fail to hold the global economy steady as things further unfold. To understand this thinking more please arrange a Zoom call with me.
PLEASE NOTE: A financial or economic commentary like these, are written to explain, interpret or give an opinion on economic events and markets to help readers understand what’s happening and why it matters. Designed to help you make informed decisions of your own by making you aware of opportunities, risks and potential rewards in the market.
