July 2015 Investment Review

(From Wikipedia) There are several Western versions of the story, of which the best-known concerns a chick that believes the sky is falling when an acorn falls on its head. The chick decides to tell the King and on its journey meets other animals (mostly other fowl) which join it in the quest. After this point, there are many endings. In the most familiar, a fox invites them to its lair and there eats them all. Alternatively, the last one, usually Cocky Lockey, survives long enough to warn the chick, who escapes. In others all are rescued and finally speak to the King.

In most retellings, the animals have rhyming names, commonly Chicken Licken or Chicken Little, Henny Penny or Hen-Len, Cocky Locky, Ducky Lucky or Ducky Daddles, Drakey Lakey, Goosey Loosey or Goosey Poosey, Gander Lander, Turkey Lurkey and Foxy Loxy or Foxy Woxy.

This is the story of Gerkyl Merkel & Fearless Tsipras

Today children I’m going to tell you everything I know about the unfolding Greek Tragedy. Are you sitting comfortably? Then I’ll begin. Once upon a time there was……..

Seriously – who cares?

Breaking News

As you read this I currently have my roving reporters in Greece, ready to send us an up to the minute report. Lesley & Lucy chose a great week for some mother & daughter time in the sun. But anyway, they can report the sun is shining, the wifi is working and the locals are happy to accept Euros still.

Screen Shot 2015-07-03 at 08.23.42

So how have we done over the last quarter?

As you can see from the chart above, the FTSE 100 index has fallen by around 4.5% this last quarter. Thankfully we have not invested all of our collective life savings in there! European stock indices have done much worse and as for China, the markets have suffered a major nose bleed.

I’m happy to report that we have largely side-stepped yet another crisis. We have not escaped completely unscathed, but I think you will agree when you see your current valuation, that it doesn’t reflect the dramatic period that has just unfolded.

None of the portfolios we run, neither Cautious, Moderate or Aggressive are down on the quarter by more than 0.9%.

A consolidation is natural after the particularly strong returns we enjoyed last quarter.

So come on. Tell us how you did it?

After such a good quarter we decided it was time to take some profit and take the opportunity to sell some old friends. We did it on the 27th April, which when you look at the chart above looks like it was (a stroke of genius/market-timing/pure luck – delete not applicable).

We sold all our European holdings and changed our UK holdings to favour smaller companies rather than larger companies. Our UK smaller companies fund has climbed whilst the sold Vanguard UK fund has inevitably fallen. Our HSBC All Share fund currently looks worse than it is. A 2% dividend is due on the 15th and is therefore not reflected in this valuation.

What do we do next?

You should turn off the TV and the Radio. Stop reading “The Truth”. Get outside and enjoy a barbecue with friends this weekend whilst this weather lasts. Whatever the Greeks decide on Sunday, the sky just isn’t falling.

Financial commentary can seriously damage your health.

You pay us to understand the details and to sweat the small stuff. We have your back.

A few questions to end with.

Would you like me to blog more on the Greek Problem?
Lesley is away till Sunday. Who is going to invite me to their Saturday BBQ?