June 24th

Despite the polls and the betting odds, the man in the street has voted with his feet. My job is to help us to benefit from this situation. I had positioned our portfolios prior to the vote to be safer but neutral on the outcome. If I would have speculated on a result, I would have gone the right way, but from the tight outcome I could have just as easily got it wrong.

Cash is King

The cash reserves I built up within all of our portfolios now looks like a sensible measure. I admit I was feeling the pressure as the markets rallied throughout this last week as it looked certain we would remain. I thought my buying chance had gone.

I’m an investor not a speculator, large gains and loses are being made as we speak by traders. The largest faller from the FTSE 350 was Redrow homes. It sank by over 75% first thing this morning to £1.00 a share and is now back to £3.41. Up almost 250%! One person loses 75% and panics whilst another holds his head and gains you may think. But no. All this volatility is created by automatic trading strategies on computers, that are programmed to buy and sell in a fraction of a second.

Today will be a waiting day. Already the FTSE 100 is back above 6000 points. There is a chance it won’t hold. As I guessed, the German stock exchange has fallen further. I will wait for the US markets to open this afternoon and It is very rare I place a buy or sell order on a Friday. A lot can change over any weekend.

18 Replies to “June 24th”

  1. YES Howard definitely NOT a time to rush in. Uncharted waters ahead, but at the same time lots of opportunities. Busy time ahead no doubt, good luck and good fortune
    Tony

    1. Hi Peter

      Would you like your tax back in Sterling or Euros?
      With Sterling falling so low, Jose will have less to spend on foreign players. Unless we use the Glazers dollars ?

  2. I was feeling the same as you Howard, but your professional approach has looked after us again. I’m rather amazed how much other markets have moved especially Spain.
    We’re looking forwards to what the future can bring.

    1. Hi Peter

      Thanks for your comments. The hard decision is what should we buy with the cash. With our currency devalued it’s going to have to be something domestic.

  3. Corporal Jones’s advice is as sound today as it was during this country’s times of peril so keep up the good work and Bon Chance

  4. All the “experts” will be gathering in the pub tonight to discuss the way forward.
    Personally I’m relieved that you won’t be there but beavering away back at the office on our behalf.
    Let’s all stay positive.

    1. Hi Audrey

      You must be delighted with the outcome. Many read your earlier comments and said they made a lot of sense. Let’s wait until the market that really matters opens this afternoon ?

  5. We are in Majorca on Holiday and it’s the topic of conversation with all Europeans.It appears the Germans are most worried.
    Your views this morning are clear and concise again, thank you ,
    Back to the beach ?

    1. I hope you got your towels out before the Germans did. Now starts the negotiations to keep us in. They need to understand this wasn’t just a cry for help.

  6. While Im off to the bookies to collect my winnings its worth reflecting on the real opportunities now open to our kids:) In some ways I wish I were 20 years younger…but then again nah, well done the great British public!

  7. Well done for holding back. I knew the vote would be close but I honestly thought that it would be the other way round.
    It will be interesting to see how the USA reacts, but my money is on team Howard. Our son is visiting from Oz in Oct so we have told him to by his spending money now, just hope the euro bounces back before Sept, that’s when we go away.

  8. Hi Howard

    I leave it with you, your instinct will tell you when the time is right and in what direction to set sail, no Captain in his right mind sets sail into a big storm

    Best wishes

    Val

  9. Hi Howard,

    Rumors are the Germans will stop selling us cars and the French will stop selling us wine and champagne!!!!!

    Cheers

    Rob

    1. And the very worst thing that could happen to us – we can no longer be members of the Eurovision Song Contest!

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