Sunday, December 29, 2013

Where Will I Be Looking to Invest in 2014

I am still very Bullish on the U.S. economy and am also increasingly looking for an economic boost for Europe too.

With almost six years of an economic downturn behind us, since the collapse of the financial markets in 2008-9.

My theory is that people are innately positive creatures, we cannot remain negative for an extended period. So it seems to me that Europe will pull up more strongly during 2014, and as it does the people of Europe and the United States will slowly increase spending and overall consumption will rise.

As a result of this I am looking to move some of my reserves to consumer goods manufacturing stocks, with a small back-up in European financials.

This is a risky move, but I am only backing my hunch with my "Silly Money" fund. About 5% of my portfolio.

All the rest of my funds are staying in broad market stocks and bond funds with a strong position in rail road companies, I own Union Pacific and CSX stock, these are needed for getting goods across the US to ports for import and export and I also look to consumer staples to hold strong support for the year.

Sunday, December 22, 2013

Can We Beat the Market?

As investors we often  hear talk about "beating the market." It has almost become a holy grail for many, but can we really beat the market?

Do I as an investor even want to beat the market?

It would be nice to earn consecutively high amounts of interest on my money, don't get me wrong, but beating the market is not one of my goals. I aim to earn more on my investments than the rate of inflation. So I am generally happy most of the time.

Also to be contrarian, I also love stock prices to fall. A falling stock price in a falling market can mean a bargain price. A falling stock price in a stable or rising market can mean you just need to get away from that stock pretty darn quickly.

Beating the market means I win,. For me to win someone has to lose. That someone has to be you.

We are all the market. You make as important a contribution to my beating the market as everyone else. In the long run I cannot beat all of you often enough to claim that I consistently beat the market. I do however, come in the upper return levels often enough so as to make me happy. Returns this year for me are above inflation andmy cash balance is nicely placed for the coming year.

Can we Beat the Market, yes, I have done it a couple of times in the past thirty years. My method then was mainly to stick all my money in one hot stock. Scarey, especially when the hot stock turns colder than an iceberg in deep space, and falls to nothing meaning that I beat the market at losing too.

Sunday, December 15, 2013

As the Year Comes to an End

As this year of 2013 comes to an end, I am very happy with my investments and life in general.

In October I received my first Guide dog from Guide Dogs for the Blind. Yes folks, in the interest of full disclosure I am a blind investor.

A walk down the street for me was once a genuine random walk, now I just put my dog in harness and let his nose sniff out the good stocks.

No, not really. I am blind and do have a new guide dog named Leif. But he does not help me with my investments.

I am however very happy about the situation as it stands in my financial life. With additions of cash and increases in the market my financial base this end of year looks to have improved about 320% over the same time last year.

All in all a nice end of year report from my brokers leaves me very happy and hopeful for a prosperous year for us all next year.

Merry Christmas and a Prosperous New Year.