During the last year we have seen Brexit, Donald Trump as President of the U.S.A. and far right parties in Europe making headway in the polls. All of this can be described as Populism. This move if carried to a conclusion is intended to shift wealth away from today`s elite back down to the hands of the lower and middle classes. If anything like this was to happen, then it will mean that corporate profits will fall, and this will be accompanied by falls in the value of already over-priced multi-nationals on the world`s stock markets. This has already taken place with large oil companies who are seeing renewable energies eat their breakfast. It is simply a question of watch this space.
Now, none of the above is breaking news, yet financial institutions are still advocating that private investors should not be active in the market to protect their investments. Instead they should take a passive approach and let their money be eroded during a market collapse in the hope that in the years to come it will recover.
We at “The Saltydog Investor” know that this way of investing makes no sense and is simply WRONG. The financial press will tell you that it is too expensive to trade your funds. Again they are simply WRONG. If you use a fund supermarket platform then the charges for trading your OEICs are virtually negligible. These same people will tell you that you cannot get the information to time the market. WRONG again.
At Saltydog we produce performance numbers for OEICS, Unit Trusts, ITs and ETFs on a weekly basis presented in an understandable fashion. We have been running a real demonstration portfolio for the last six years funded with our own money. It has avoided the market drops and has gained 59%. What is not to like about that?
As a D.I.Y. investor in the U.K. with the Brexit negotiations coming up close and personal; with The Donald making hay whilst the dollar swings one way and the other. You will need to be active not passive. Good luck.