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: The usual dilemma
21 August 2012
Since I last commented on the peformance of my portfolio in early March 2012 where I was showing a 3.6% gain. I’m now pleased to be showing a 9.4% gain YTD with dividends mostly being withdrawn too. I have also increased my cash holdings upto 14.2% in June as I had concerns over the political agenda influencing the economic with markets reversing gains made so far in 2012. The rally in equity markets globally has obviously continued through the summer up till now. There has been much comment in the news and press generally as to whether this may continue.
My own thoughts remain that the political threats remain with more appearing like China and Japan rowing over disputed island territories again – always a worry. The August holidays keeps volumes lighter on international bourses and any negative sentiment could be expressed or profits taken once more people return to their desks. A fairly obvious statement and a response then would be to take profits before then. However, opinion is split – see the FT’s FM section of the 13th August – to get contrasting views of the attraction of equities over bonds and the yields offered and equities being spurned for corporate bonds or alternatives. Now Norway’s massive SWF is considering investing in smaller under valued company shares. Something I like doing myself so plenty to think and remain optimistic about too. Lucky I didn’t go away myself. Now to sell or to buy or wait until it falls again again it’s the the usual dilemma. The City cliche is that you’re never a pauper if you take profits.
Any one got a view on British Land?