Tuesday, 27 May 2014

Grabbing Profits... (Portfolio Sale)

Thank you Mr Market...
As readers will be aware from my last post, I am fearful for my fixed-income capital gains - so I am selling off those with any substantial profits. The paradox is that these prices continue to increase, when I expect them to be decreasing.

However, by 'running for the hills' I am breaching my normal 'sell' rule which is intended to encourage me not to 'grab profits' - but wait until capital gains exceed five times the current income. But I think the situation is sufficiently abnormal to exercise some discretion here.

Thursday, 22 May 2014

Bonds Away! (Portfolio Sale)

Here's the thing (as they say in those American films): why have the prices of many UK fixed-income securities continued to increase recently?
To recall the basics truisms: the yields on all securities are related, with yields on low-risk government bonds setting the baseline; interest rates on cash deposits also influence yields in the market; the 'value' of fixed-return yield is also undermined by the level of inflation.
So, looking into the crystal ball, what is likely to happen to a) interest rates and b) government bond prices and c) inflation?

Wednesday, 21 May 2014

Back to the Future (Portfolio Buy)

One of the nice things about being a DIY Income Investor is that the 'cash bucket' quickly fills up giving the opportunity to invest in something new. This process means that the portfolio is gradually refreshed and that its constitution can be modified over time (in terms of the balance between dividend shares and fixed-income securities). Added to this, the annual ISA and SIPP contributions give a useful fillip to cash levels, meaning that even more renewal is possible.

Except sometimes, you might go back to an old favourite - something that you have sold off in the past. Deja vu, all over again.

Sunday, 4 May 2014

Catch a Falling Star... (Portfolio Buy)

Errr...don't try this at home!

"...And put it in your pocket" - that's Perry Como's advice.

But when it's a falling knife, should you try to catch it? Well, I've been trying a bit knife juggling - what has this produced?