GREAT BRITISH TRADE OFF
Friday 15th June 2018. I’ve had a brilliant week, I’ve been away sailing my boat on the Norfolk Broads for a few days. Some parts of the Broads are touristy and utter crap but there are plenty of hidden gems once you know where to look. Pulling up in an old sailing boat somewhere like this to spend the night is just heaven really. Especially if there’s a good pub nearby.
I got back last night having not thought about my investments for even ten seconds whilst I was away. Logged on and thought wow I must go away more.
Yesterday evening my Great British Trade Off portfolio was actually in credit. Yeah I couldn’t believe it either when I saw £100,239.00. But as I so often say, what goes up can come down and today £700 bled away.
Shame from an emotional point of view, but from an investing point of view believe it or not I don’t just want things to keep going up. The danger always is that if the market gets a bottle of spirits ahead of itself, the inevitable correction is not going to be fun.
Fagin with his Rolls Royce trade beats me this week by a few hundred pounds, but I’m not too unhappy with the £289 increase in my portfolio’s value.
Fagin and I approach the business of seeking financial independence from different angles, but one of the things we are in total agreement on, is if we want to generate wealth (and believe me, we really do) then the best way to do it is to get above average returns out of the Stock Market.
My return this week is .3% which if you plot it for a year is a market beating result.
Twelve of my fifteen funds are up this week, my star performer being the Legg Mason IF Japan Equity Fund up 3.36% on the week. This is closely followed by the Baillie Gifford American Fund up 2.81%.
CHART OF THE LEGG MASON IF JAPAN EQUITY FUND
I’m currently just over 10% up on this fund, with just over £11k invested in it.
In percentage terms the Baillie Gifford American Fund is twice as profitable for me, being 20.3% up since I bought in. But my position at £6k is only half the size which is a shame. My view is that it would be stupid to chase the price and buy in no matter what, as sooner or later there will be a correction. I’ll buy more after the correction once momentum has re-started.
CHART OF THE BAILLIE GIFFORD AMERICAN FUND
The signal I’d look for to make a top up would be the price coming down through the green line (a two week moving average) and then rebounding back up.
However whilst there’s much for me to be happy about, its not all singing and dancing on the table with my portfolio. As you may remember I’ve been wittering on about the Neptune Emerging Markets Fund for a couple of weeks. It’s now got on my nerves.
Last week it looked as though it was going to claw its way out of danger, but sadly that hasn’t happened and its broken down through my stop loss.
CHART OF THE NEPTUNE EMERGING MARKETS FUND
For what its worth I think the price is likely to bounce off the low 160’s, but I don’t bet on what I think, I bet on what I see.
And what I see is a fund that’s broken down through my stop (the red line, a six week moving average) so it has to go.
As we sit this evening I’m a couple of hundred down on the deal, so not the end of the world even if I suffer a bit of slippage before my selling order goes through early next week.
This pending sale will take me down to about 83% invested, which is probably no bad thing as everywhere I look prices seem very toppy.
So for the coming week nothing to buy and just this one sale.
I have to say that I so much enjoy pitting my wits against some of the cleverest brains (and machines) in the world, which is what you do when you ‘play’ the markets. The quest to seek Financial Independence will continue next week