I hope to publish three or four posts per week to record my thoughts about the market. I will use broad brush strokes to describe my activities, but nothing I write should be construed as a recommendation. I will highlight my fears and uncertainties because that is what stockmarket trading is about. Comments are invited to help me and readers better understand what is happening.
Wednesday, 7 August 2013
Flat and Walking the dog
I have been busy so no time till now to update the blog. Not much lost since the
market continues flat. ( I speak of the Dow, more of the FTSE in a moment.) I’ve
drawn a tentative new support line. Although the old one was broken several days ago the price
has not fallen sufficiently to give a down signal using my Support and Resistance system.
trading point of view it is very frustrating. You will recall I am fully
invested in US stocks. The market is playing with me: one step forward, one step back. Nothing to be done except watch and wait an be ready to bail out if
The UK is very similar, albeit with a more volatile manifestation of going
nowhere. The new Governor of the Bank of England is due to make his first big
announcement today. It is reported that he will unveil a new policy of guidance on
interest rates. This means the bank will say that interest rates will remain at
x (x being half of one per cent at the moment) for a period of time unless something
specific happens e.g. inflation rises above a certain level or unemployment falls to a specified point.
is that short term interest rates cannot fall further, so that bolt has been
shot. And longer term interest rates, over which the Bank has less direct control,
are edging upward. However, it does not address the question of QE. If the Bank
stops buying bonds prices will continue to ease and long term interest rates
will, de facto, rise. So the likely effect on the stock market remains hazy.
portfolio is holding up reasonably well despite carrying two lame ducks: THT
Current holdings are: UK: THT AML WIN CLND III BDEV KLR GLE SDY TW. LLOY SIV GVC US: ZHNE HCBK LSI TBF KTOS LEE ARC ORBC SBCF SNV SOL HSOL III UVE GTN EVC COCO LFVN I am 98% invested and feeling a bit exposed.
It explains why I
work so hard to manage my own portfolio and probably why some of you do the
same. It may also encourage those, sitting on the edge of the pool, still
using financial advisers and financial products to "look after" your savings, to take
the plunge and to do your own investing.
explains in graphic and horrifying detail how the city is robbing you blind. The program should come with a content warning. The Simpsons once announced to its viewers "The preceding program contained scenes of extreme violence and should not have been viewed by young children."
It explains how many organisations, all of them grown very fat on your money, take a slice
of your cash, before a single penny is used to buy a stock. Even after the
shares are purchased the gouging goes on.
gets rich, its employees enjoy bonuses. All because they can legally pull off
the trick that some fraudsters successfully exploit. If you can break
into an accounting system through which money flows and then shave off a tiny sliver from each transaction,
no-one will notice and you can make millions. Billions in the case of the
financial services industry.
It’s a massive endorsement for making the effort
to do it yourself.