If someone told you that due to the Brexit referendum decision, it would be wise to move your money to the Polish stock market, you would probably laugh. You would die laughing if I advised you to invest in “always expensive” American companies.
On the other hand, you would confirm that properties are always a good investment.
Read this post to find out what happened with different asset classes in the three years since the UK’s EU referendum.Continue reading
Imagine that you can own shares of only one company. It means that your portfolio is not diversified at all. Well, it is rather difficult to call it a portfolio. It is just your money parked in the shares of one business — hopefully, the good one.
Such an approach is not a great idea from the perspective of diversification. I would not put all my wealth into a single company.
Understanding a business well may not be enough. There are so many aspects of investing you do not have an impact on that such a bet would be a very risky one. Political decisions and changes in regulations are factors we cannot predict. It is something we can recognise as a risk, but we never really know what new idea is growing in the heads of politicians.
Is it a good decision to sell shares right after the company published a very good results?
Well, it depends…
On Tuesday, Apple surprised investors with much better results than predicted by analysts.
Next morning I decided to reduce my stake in the Apple company.
S&P 500 went down 6.58% during the last month
The new tariffs on Chinese products were proclaimed by President Donald Trump at the beginning of May. It was the trigger for the correction on stock markets in May. Another reason for the May sell-off was the extension of the trade war on the technological front. Trump’s banning of Huawei could be a sign of worsening relations between China and the United States. Later, Google suspended Huawei’s access to the Android operating system.
My comment on Alphabet and Facebook
A 3-month correction on the S&P 500 or the beginning of the crash? You could hear the B word quite often at the end of the last year. And it was not only Brexit but also bear market…
On the 28th October I published the analysis for the Investment League project of which I am the administrator and a participant. It is an educational project whose goal is to encourage my office colleagues to invest. It lets them try investing but without taking aby risks. It provides the opportunity to understand how investing on the stock market works.
Welcome in the year 2018. The year 2017 was very good in the financial markets. The developed markets were growing steadily with S&P500, Nasdaq and British FTSE100 growing respectively +19.96%, +28.86% and +8.55%.
The emerging markets outpaced the developed markets with Argentinian Marvel raising +77.62%, Turkish XU100 +47.60%, Indian Sensex +27.91% and Polish WIG20 +26.35%. Results of those markets are even better if we refer them to one currency – for example Polish PLN gained +16.84% to the US Dollar in the year 2017.
As many institutions are playing to be a forecaster, I also have decided to give it a try. I will have a look at currencies, stock markets and commodities prices in 2018.
Currencies and cryptocurrencies
In my opinion US dollar plummeted too much in the last year. Raising interest rates and possible repatriation of money by American companies, caused by lowered tax rate, will strength the dollar. Also British Pound will finally grow slightly. The currency which I underweight is Euro.
A year ago I opened my ISA account with AXA. Since that, I have been investing in the global stock markets and commodity funds. The results are much better than I expected.
The chart above shows the performance of my investments vs benchmarks – FTSE100, FTSE 250 and SP500. My wallet performance was +79.30%. FTSE100 gained +21.87%, FTSE250 gained +3.68%, and SP500 went up 22.39%.