A simple approach to successful personal investing with the goal of generating a growing income from a portfolio including cash savings, shares, corporate bonds and government-backed investments, using online savings and brokerage accounts and shielding your investments from tax wherever possible.
December (2016) is shaping up to be a lot more jolly than November - the portfolio is up a couple of percent in the first half of the month. I'm also looking forward to the usual Santa rally in the markets. (In fact, you could probably make a case for just investing in December and cashing out afterwards!)
After a bit of profit-taking the DIY Income Investor portfolio has cash to invest. It's a mixed blessing, as it's all to easy to make silly investments at this time of year (well, any time of the year, really).
November 2016 turned out to be a bad month for the DIY Income Investor portfolio with a fall in value of around 3%. December is more full of cheer, bringing the running total return for 2016 to around 28%, which is very satisfying.
Despite my best efforts to resist profit-taking I did make a large sale - and immediately regretted it as the price continued to rise.
Apparently the DIY Income Investor approach is an example of Super-High Yield Investing, which John Kingham ('The Dividend Hunter') defines in a recent article as "buying shares where the dividend yield is close to or above twice the market yield."
But is this really the 'dark side' of income investing?
If you are a UK-based investor you may - or may not - be enjoying yourself over the last month or so. The recent currency fluctuations have revealed something interesting about the DIY Income Investor portfolio, which will help to guide future investments.
Talking of which, I've been putting some more available cash to work with something a bit counter-intuitive.
The rapid devaluation of the Pound, following the Brexit vote, boosted the value (in Pounds) of the DIY Income Investor portfolio. That seemed like a market over-reaction to me: and it seems like the currency market is now reappraising Sterling following statements by the Bank of England.
The Pound goes back up and the London Stock Exchange goes back down.Do these fluctuations in currency value offer an opportunity to take quick profits?
Sometimes the Stock Market is compared to a casino. I don't think that is a fair comparison. Although there is an undoubted random factor in daily events - which affects prices - I believe that there is a lot of skill involved in successful investing.
At least that's what I like to think. However, many observers point to the possibility that seemingly successful investors might just be lucky.