You Might Be Surprised!
16 December 2021
To all Financial Friends
Amidst all the growing gloom of Covid/Omicron here is some good news! My records show that students of the Money Awareness Course have averaged a return of just over 8% over the last 12 months! This during some of the most uncertain and difficult of times for investors.
Better Still
With over 8% as an average, some have done even better nearing a 20% return at the top end, and just above 5% at the lower levels. Looking at the main holdings held by our investors here is the picture:
Global Technology (+29.86%) Natural Resources (+21.58%) Global Infrastructure (+14.75%) UK Infrastructure ( +10.91%) Index Linked Gilts (+9.38%) American Equities (+7.62%) Multi Asset Fund (+5.39%). UK Equities (+1.28%) Corporate Bonds (+0.08%) Global Bonds ( -1.94%) Gold and Silver (-10.42%).
Encouraging Observation
Today (16th Dec) we await the Monetary Policy Committee decision as to whether to raise interest rates. Should they do so, it would be the first time for a rate rise to be announced in the month of December for 24 years. As I write at 8.50 am the FTSE 100 has risen 1.12% today. The Index remains above my comfort zone level of 7000 at 7253. The FTSE 100 (+10.34%) up over the year to date.
Several Financial Friends have invested monthly by tracking the FTSE 100. One reported a return of 24.1% over his 16 months of saving £100 per month. Happy Christmas! Regulators, even at Christmas like to remind us correctly, that past performance is no guide or guarantee for what might happen in the future. However they never tell us there is a risk we might make a profit, which we have!
What Next?
First please read the attachment. What you read will entertain you. This, one of my recent LinkedIn posts, contains essential information, and some quite shocking news. The more than unhappy onset of Omicron will likely have the effect of delaying the arrival of the turning point. The 'turning point' as we have often said here, is when authorities stop 'printing money' and stop holding down interest rates and put the brakes on borrowing vast sums of money to support the economy. This leaves the markets to survive on their own unsupported.
Before the 'turning point' arrives you might think it prudent to have moved mainly out of Uk and Global Equity funds into safer havens. If you need help with this please call me. That's why you have a Financial Friend! Meanwhile (although a touch boring to repeat) the following paragraph suggests a way to handle these uncertain times:
So against the current background might you be comfortable with the following strategy? A broad diversification (spreading money across different types of investments) for some of your portfolio but a healthy balance invested with conviction across Inflation linked bonds, infrastructure and gold (though volatile). Perhaps a stronger emphasis on global (rather than UK) holdings?
If you need help to achieve this, or you have an alternative strategy you would like to discuss, just call me: 07540 582910
The New Year
Uncertainty is the one certainty in the New Year. In the uncertainty there will be investing opportunities so do watch this space! Also, we continue to feel the market for the 'turning point' when strong encouragement will be offered seeking to protect against and then profit from significant changes arising.
Happy Christmas!
In these uneasy times I find hope, strength and comfort in the person mentioned in the first six letters of the word Christmas. Whatever your foundation of hope for the future may I wish you much enjoyment and a time of restful escape from the more pressing issues of current life. May it be so for all of us and those we love.
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.
