No day may be judged until night has fallen.

What is the point in trying to second guess where the present tragedy that is being played out in Greece will end?

Without a direct feed into the brains of the Greek Prime Minister Alexis Tsipras and the German Chancellor Angela Merkel and their negotiating teams, we and the media are mere spectators to the event. The best that we can do for our investments is to be cautious and protect them as best we can by heading for cover until peace is declared.

Looking at the graph below it is good to see that the Tugboat portfolio has managed yet again for the fifth time since its conception four years ago, to avoid a major market fall. Is this a coincidence? Of course it is not, it is down to the fact that the portfolio is actively managed inside the restrictions imposed by a Saltydog cautious risk pie-chart. There are many people who decry active trading and promote a passive approach to their investing saying that it is not possible to avoid these market dips and that it is expensive to keep changing your fund selection. Ten years ago this might have been true, but now that is simply nonsense. In today`s world it only costs an annual platform charge of £450 per £100,000 of portfolio to trade as frequently as you like, and if you are using OEICs there is no further cost. Knowing about the Saltydog slow property funds also means that you can hide your money there and still earn a return until the storm passes over.

I am sure there must be a medical term for those passive investors who appear to revel in experiencing these regular market drops saying that it will be better tomorrow. This is definitely not for me, instead I feel that being active keeps both me and my investments fit and is certainly better for the soul and the bank balance.

sdi06

The Greek problem.

There must be many people who like me feel that in the current financial crisis, the Greek people are being given the ‘rough end of the stick’. At the formation of Euroland in the sixties, and at various later stages, the desperation to produce a united European front meant that the totally inadequate economies of some of the Mediterranean countries, Greece in particular, were massaged in order that they could comply with the financial rules for entry and become members.

The Germans were at the forefront of this deception. They realised then, as they do now, that the low exchange value put on the Euro would be mightily beneficial to the export trade of the German manufacturers. Think of cars and machinery going to China, The East and everywhere else in the world. Poor old Greece does not have a manufacturing base to take advantage of this Euro exchange rate gift.

It is rumoured that during the Second World war the Germans made off with the Greek nation`s gold bullion, and it was never returned. Perhaps it is time for the German nation to correct this obvious oversight, and rescue Greece from its present predicament, as a thank you for these past demeanours. Of course it is hard to defend the Greek’s reluctance to pay their taxes, and their work ethic which says that retirement comes shortly after puberty.

Watching and listening to the news, I cannot help but feel that Angela Merkel and the German race feel that as they are the financiers for Euroland, the Euro and its future destiny is theirs to decide, which maybe is a fair point.
Following the ‘No’ vote this weekend, it will be a challenging week for the negotiators on both sides, and an uncertain time for the markets.