Call me King Canute if you like but .........
To put this in context. At the bottomof the stock market crash the FTSE dropped to 3,800.
Subsequently it climbed back to 6,000 but this week it has dropped back to now be 5,246.
You have to make a call now as to where the markets go from here.
Given the massive debt issues do you think we are heading back to 3,800.
If yes, then you should be selling out completely and buying back in at the bottom.
What are we doing at Dunover.com
Our large long term recovery holdings in RBS and Lloyds have taken a hammering and currently sit at 28p and 32p respectively. To be worthwhile selling and re-buying you would need them to drop at least a further 10%. Do we think they will go down to 25p and 29p.
Our call is not to panic. We are holding Lloyds and RBS.
The Western World are definately broken but we have changed our investment strategy to invest in Asia driven companies anyway.
So we have sold out of our European driven recovery plays Dixons, French Connection and Premier Foods anyway and sitting on the cash.
Our revised 5 companies to buy into Mulberry, Burberry, ARM, Autonomy, GlaxoSmithKline are all dropping with the stock market at present.
So we are holding onto our sale proceeds for now and wait for the market to steady a bit before buying into our super 5 companies.
The market ecovery has basically been set back a year this week.
That in my opinion is fair given the debt issues of USA and Europe.
Do I think we are going back to a FTSE of 3800 ??
Answer is no. My view is the markets will be a bit rocky during thin trading in the holiday season and will steady in September when everyone comes back to cheap share prices and hopefully some political solutions to the economic problems.
So we are holding and keeping our nerve but using the opportunity to re-align to our new more heavily Asia based investment strategy.
Subsequently it climbed back to 6,000 but this week it has dropped back to now be 5,246.
You have to make a call now as to where the markets go from here.
Given the massive debt issues do you think we are heading back to 3,800.
If yes, then you should be selling out completely and buying back in at the bottom.
What are we doing at Dunover.com
Our large long term recovery holdings in RBS and Lloyds have taken a hammering and currently sit at 28p and 32p respectively. To be worthwhile selling and re-buying you would need them to drop at least a further 10%. Do we think they will go down to 25p and 29p.
Our call is not to panic. We are holding Lloyds and RBS.
The Western World are definately broken but we have changed our investment strategy to invest in Asia driven companies anyway.
So we have sold out of our European driven recovery plays Dixons, French Connection and Premier Foods anyway and sitting on the cash.
Our revised 5 companies to buy into Mulberry, Burberry, ARM, Autonomy, GlaxoSmithKline are all dropping with the stock market at present.
So we are holding onto our sale proceeds for now and wait for the market to steady a bit before buying into our super 5 companies.
The market ecovery has basically been set back a year this week.
That in my opinion is fair given the debt issues of USA and Europe.
Do I think we are going back to a FTSE of 3800 ??
Answer is no. My view is the markets will be a bit rocky during thin trading in the holiday season and will steady in September when everyone comes back to cheap share prices and hopefully some political solutions to the economic problems.
So we are holding and keeping our nerve but using the opportunity to re-align to our new more heavily Asia based investment strategy.
One issue we have is that one of our friends we invest for within the Dunover.com investment fund likes to have a say in what he invests in.
ReplyDeleteSo we do allow self select in our investment fund.
Well he wants to invest in Premier Foods and is not convinced of our revised strategy to focus on Asia driven companies.
Unlike us he's still harbouring a quaint loyalty to America and Europe and Britain.
I can't persuade him out of Premier Foods and they have been hit particularly badly in this weeks fall dropping 18% today to 12.96p.
It's a long road for him to come back from there.