Page 32 - DIY Investor Magazine | Issue 30

IT IS SAID THAT WISDOM COMES WITH AGE, BUT SOMETIMES AGE COMES ALONE – THOUGHTS OF SALTYDOG INVESTOR
Now I may not be the fastest fox in the forest, but no sane person drives fast in a fog and today’s investment climate is definitely murky. There is no obvious direction to the markets and no particular sector is standing out with strong upward momentum, or at least not recently, nor for any length of time.
Watching the movement of the dollar is just as confusing. One month it strengthens, the next it goes into reverse when the tyranny that is the media and their experts start beating their chests about inflation, over-valued stocks, and the arrival of the Four Horseman of the Apocalypse.
‘I STILL BELIEVE IN THE FUTURE OF TECHNOLOGY AND THAT THE UK WILL BE ONE OF THE FIRST COUNTRIES TO RECOVER’
Under these circumstances I have been reducing the amount of money I have invested in the market and moved into holding more cash.
By and large I have done this by reducing the amount in most of the funds that I hold, but very few have been totally sacrificed.
This is because I still believe in the future of technology and that the UK will be one of the first countries to recover economically from the effects of the pandemic.
I just do not have any idea when this might happen, but I gain hope when Liz Truss returns to the UK indicating progress is being made securing new trading contracts with the Pacific and Asian nations.
I also like the fact that foreign companies see value in, and are trying to buy up British businesses, although I am uncertain about the wisdom of losing our security in some of these cases. Still, fortunately that is not my call!
The following are the UK funds that I am hanging my hat on at the moment.
• Franklin UK Smaller Companies. • ASI UK Smaller Companies.
• Aberforth UK Small Companies. • Chelveton Growth Trust
Please remember that these are not recommendations, just my own take on the numbers that we produce at Saltydog.
Many subscribers with more experience than me, will successfully choose different funds to follow, and also have a better take on the future of the investment markets. I just feel more comfortable not taking the risk.
If the markets do go up, then not having so much invested, does mean I lose out, but if it goes the other way, I do not lose as much. Younger investors might choose to ride it out, but as an older one, that is not for me; as Frank Sinatra said ‘That’s Life’.
Even though I have written the above, the bulk of my investments basically follow the Ocean Liner portfolio percentages. I very rarely invest into individual companies, preferring to use fund managerial and research teams to give me a spread of businesses.
There is one exception as most of you will know, and that is the hydrogen company ITM Power.
‘IT GOES UP AND DOWN LIKE A LADY OF THE NIGHT’S UNDERWEAR’
However, the price volatility of this company is really getting on my nerves. It goes up and down like a Lady of the night’s underwear. Fortunately, it now looks as if I can escape this problem.
There is a recently formed Trust fund called Hydrogen One Global Growth which intends to hold in excess of thirty-six companies involved in the production and use of hydrogen worldwide. I expect to see ITM inside this fund’s portfolio.
DIY Investor Magazine | Sept 2021 32