Monday, 17 August 2015

Doom and Gloom

Trouble Ahead Sign
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We are going through difficult world financial times, which the London Stock Exchange is reflecting in its loss of all 2015 FTSE100 gains.

If you are a Buffettarian, you will know that the best time to buy is when all others are fearful. And the signs could not be worse...

Monday, 10 August 2015

Cycles (Portfolio Buy)

http://www.leadingtrader.com/wp-content/uploads/frugal/economic_cycles.jpg
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The DIY Income Investor portfolio is languishing somewhat this year, barely maintaining its total value. The migration into diversified income-oriented Exchange Traded Funds (ETFs) over the last couple of years was meant to provide stability - but coupled with reasonable gains, not stagnation...

Economies - and therefore financial markets - work in cycles of confident exuberance followed by panicky fear; and unfortunately these cycles can span several years. So, it's difficult to tell whether one particular investment strategy will work in the medium to long term. For the time being, I'm going back to basics that have worked over the last 10 or so years: purchasing more focused investment instruments.

Tuesday, 28 July 2015

Buying and Holding - and a Recovery (Portfolio Sale)

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For a DIY Income Investor - indeed for all stock market investors - one of the hardest things to do, apart from selling losers, is to do nothing. When the prices of your holdings are wilting, there is an inbuilt, instinctive reaction to run away - the 'flight' instinct. This is when unseasoned investors panic and sell out - turning a paper loss into a real cash loss.

However, as an income-oriented investor you have a great behavioural support - the income.

Friday, 3 July 2015

African Gold! (Portfolio Buy)

premium company pan african gallery 2
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Having become a bit disillusioned with the performance of my 'high yield' Exchange Traded Funds (ETFs) in the DIY Income Investor portfolio, I've decided - for the moment - to go back to doing what I seem to have done best: buying individual high-yield securities.

This time, I'm back to dividend shares, although these are slightly over-represented in the portfolio (which is intended to be split broadly 50/50 between dividend shares and fixed-income securities of different types).

Sunday, 28 June 2015

Do ETFs Behave Differently? (Portfolio Buy)

etf 36_exchangetradedfunds_421x236
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As usual, a DIY Income Investor portfolio sale - viz. the recent Berkeley Group cash-in - leads to the difficult decision of what to buy now. This is always a challenge because, having been successful at making money (quite a lot in that particular case) you don't really want to blow it on something that will then tank.

This decision is all-the-more difficult because the strategy I have adopted in the last year or so (which involves building up the proportion of ETFs - Exchange Traded Funds) does not seem to be working very well.

Wednesday, 17 June 2015

Investing by Numbers (Portfolio Sale)

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After weeks in the investing doldrums, it's nice to wake up in the morning and see something happening with the DIY Income Investor portfolio: one of the bigger holdings has shot up by around 8%!

The new strategy of buying more Exchange Traded Funds (currently 43% of the  portfolio) is working in one sense: not a lot of attention is required - but not in another: the price trends are slow (and at the moment not all that favourable, it has to be said).

So a bit of positive 'market action' has cheered me up a bit.

Monday, 1 June 2015

Review: Infinis Energy

windfarm_rainbow
The pot of gold?
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Not having anything to buy or sell means there is time to look at the current DIY Income Investor portfolio and catch up with some of the developments of the constituent holdings.

Infinis Energy (LSE:INFI) is a new company and describes itself as 'the UK's leading independent generator of renewable power'. It currently has a whacking great forecast yield of over 10%: is this an alarm bell or a contrarian opportunity?

Monday, 18 May 2015

Sitting Tight!

Courtesy Of Jerry Reinwand
...but not necessarily bearish!
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No posts recently - but then there have not been any changes to the DIY Income Investor portfolio. In any case, with summer on the way there are lots of things more interesting than watching the markets (like Bluegrass festivals!).

And isn't that the Holy Grail of DIY investing - a portfolio that ticks over nicely, while you have fun?

There have been some developments, though...

Thursday, 23 April 2015

'Backtesting' the DIY World ETF Income Portfolios

Does back testing help traders?
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Last month I suggested that it would be possible to create a DIY geographically-diversified income-oriented portfolio using just ETFs (Exchange Traded Funds). The idea was to create a long-term DIY portfolio that was easy to administer and which also minimised risk, whilst retaining (what I see as) the benefits of a yield-based income-oriented approach to investment.


One reader asked whether it would be possible to review the past performance of such a portfolio - so here goes...

Thursday, 16 April 2015

When It Goes Wrong: Huntsworth

A lot of eggs in a lot of baskets
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The DIY Income Investor portfolio has recently hit an all-time valuation - that is very reassuring but the portfolo does contain some problem holdings.

Buying high-yield securities directly (as opposed to a high-yield ETF) exposes you to specific security risks. In a sense, that is what the high yield should tell you: buyer beware!

So what should you do when a security goes bad?