Herewith my letter. There is much more I could have added but letters have to be brief. Of the UK bank lending to business, over 80% is for construction with over 80% of that construction being in London and over [...]
News and Views: 2013 off to a good start… will it last?
The equity markets have generally started well for 2013 and specifically my portfolio is showing a 1.9% gain so far after a respectable gain of 9.43% in 2012 – excluding dividends. So I’m relatively pleased and have also made some additions to my portfolio in a variety of sectors from healthcare, US high-tech manufacturing, UK miscellaneous engineering to defence for a mixture of growth, yield and a gamble of a take over approach for my small speculative purchase of Chemring Group – the pyrotechnics defence company.
I’ve also recently added a couple of investment trusts for RIT Capital Partners and Scottish Mortgage Investment Trust to compliment my global income and growth stocks theme. I’ve learnt that income or reliable income through progressive dividends streams shouldn’t be underestimated with capital gains providing the growth over the long term if able to select the stocks, sectors or funds. Stock or fund selection for companies with good growth prospects is going to be a my research effort for the next few months finding opportunities in sectors which have an opportunity for global sales growth in sectors such as healthcare, high-tech manufacturing, media, financial services and leisure pursuits in emerging (or more suitably emerged) markets. The recovering US housing market and the confidence to the US consumer are two very important features required to bring about a successful year not just for equities but for positive economic progress for both mature (low growth and debt-burdened) and developing (manufacturing and exporting orientated) economies. The games US politicians are currently playing in the Congress won’t help over “fiscal cliffs” or debt ceilings. Continuing fudge of reform in EU countries with little real change to economic growth isn’t going to drive growth much either although equities may be seen as a place where funds are allocated because there isn’t much alternative if searching for yield.
Good luck with your own research and portfolio allocation for 2013.