Political uncertainty #investments
The London stock market still looks shaky this week with political uncertainty making traders and investors nervous. I’m old enough to remember a few governments and so although cautious, I’m not too worried. Last week, I lost about 2% on my portfolio, but gained this week.
I have studied political history and the same political mistakes are made over and over again, so I just try to make the most of them. Share prices go up and come down, I try to sell on the highs and buy on the lows!
This week, my latest acquisition Verona Pharma did quite well and my paper profit is around 14%. The AIM market can give a good return very quickly or a huge loss. I’m still waiting for Graphene Nanochem to make a profit. Solo Oil dropped back to 0.52 on Monday, but is back up to 0.57 this morning. That gives me a return on paper of better than 70%. I am expecting Solo Oil to soar when the oil and gas start flowing.
The AIM market is one that can make or break private investors and so it’s important to have a diverse portfolio and look at other markets. Of the small caps, Premier Foods was my best one, but now I’m making a slight loss. They did go into profit briefly this week and I expect the price to edge upwards next week.
Tesco was my big faller this week, but the market took their loss well. I see a better future for Tesco, without over ambitious plans or private jets. They need to get back to basics, good products, proper marketing and great customer service. They need to get out of some markets where the model doesn’t work or adapt better.
I really wish RSA Insurance would do better and I think there could be a sudden jump there. Stephen Hester is the CEO trying to turn that around. I need RSA to go up about 4% to break even.
Obviously, if you’re a private investor, you know to wrap your investments in a stock and shares ISA for tax purposes. You might make good use of your capital gains allowance too. I only tell you my thoughts on my investments, I don’t give advice.
I have a number of companies on my watch list, Cable and Wireless (CWC) looks interesting. I doubt if I’ll be buying before the election and will be cautious after the election. The political situation is holding back a lot of investment.
That’s it for this week. You can share your thoughts in the comments box or you subscribe using the widget in the sidebar. You can also follow me on Twitter.