Update to Investments ideas
Posted by jdavis on June 13, 2014
These are some of the investments we have previously written of, to give you a flavour of our thinking and the outlook for client portfolios.
We wrote very positively of US Natural Gas last Autumn. Our clients started buying at c 18$ then.
It still looks hot to trot, for the long term.
Read here what we wrote. We remain very positive of this asset, after a c 40% rise (in US$) since last Autumn.
We started investing in Emerging Markets' (EM) shares in the Autumn of last year. EMs are, for example, Brazil, Russia, India, China etc.
The above is NOT the chart of EMs. It is how EMs have performed relative to Developed Markets (DM) with the proxy of the US S&P 500 market.
As you see EMs fell some 50% over three years to earlier this year, compared to the S&P. That is huge underperformance.
The relative price is slightly higher than last Summer and appears to be rising. We remain confident of EMs share prices, whereas we remain concerned of DM share prices.
(Were you aware the FTSE 100 in the UK is no higher than where it was over a year ago...? Hardly positive.)
The above represents US Treasuries i.e. lending to the US government, similar to UK Gilts.
Clearly, this has been storming ahead since the start of the year. It had a bad year and the entire media 'told' everyone to sell government bonds.
We didn't. We remain confident of US Treasuries. The strength also points to economic weakness...which is another reason why we remain concerned for Developed Market share prices.
Nothing in these articles can be taken as financial advice. Neither Jonathan Davis nor Jonathan Davis Wealth Management will be held responsible for action taken or not taken from reading these articles.
We recommend investors seek bespoke advice before acting.
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