I have to close the year with a blog post noting, after looking at my own portfolios, that the serious risks I have emphasised since the early Summer have wrought even more havoc than I expected. I am known as an optimistic, so when my comments had started to turn pessimistic I had been told that things must be really bad. Indeed they are.
Of course, I am pleased that some of the ‘insurance’ built into the portfolios is working well, notably the highest ever weighting to cash. The ‘works when you need it most’ holding in the Jupiter Absolute Return fund is also doing what it should. No one who reads my words of acclaimed wisdom should be needing to sell assets at the moment.
When will it get better? Not soon in my opinion because none of the major political risks have reached a hiatus. But if things get much worse, there will shortly be a great opportunity to start in to the next 10 years of making money – as long as you have cash and courage!
So, the optimist in me still lives on! There is always opportunity around the corner when there is a sell off and this time I hope we are all ready for it.
Happy New Year!
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