DIY Investor Magazine
/
Jan 2017
27
DIY - What sort of investor you are?
CE – ‘I would classify myself as a medium risk investor,
with a dose of caution, particularly given today’s
environment. I am a fan of equities and tend to focus
on UK and European stocks which I believe provide the
potential for longer-term growth, although I am not a
frequent trader, I keep a close eye on things and react
to major events, which is why it’s fair to say I’ve been a
little more active recently than I would normally be!
DIY - How have you positioned your investments
following Brexit?
CE - It’s fair to say I am overweight in equities and have
been for some time now, so I haven’t derisked too much
despite what’s been going on. I am a firm believer in the
adage ‘it’s about time in the market, rather than timing
the market’. The action I have taken though is to shift
the bias of my portfolio more towards UK exporters and
away from Europe, for example Melrose Industries given
its exposure to the US and Asia; so far that decision
looks to have been a good one.
DIY - What are your greatest concerns about Brexit
both for your investments and business?
CE – ‘From a business perspective the uncertainty
around Brexit is unhealthy and it has impacted decision
making by existing and prospective customers. As our
research suggests the government is reigning in its
horns too with the dip in tenders, however, we also feel
there is a degree of a seasonal effect with this.
Costs have also gone up a little as mentioned with the
weakness in sterling. The other challenge with Brexit is
what image it projects of the UK and we have concerns
around being able to attract staff with the right skills as a
frequent recruiter of non-UK citizens.
There’s also a great deal of uncertainty around Trump
and what sort of President he will actually be. He
has definitely put some clear blue water between his
election campaign rhetoric and his President elect
statements, so that makes us more optimistic, but there
are ‘unknown unknowns’ here.
Then there’s Europe and the EU. Lots of political change
which has made both businesses and investors really
focus on preparation for the year ahead, which could be
bumpy, but we do not foresee any lack of opportunities
and have an exciting pipeline ahead of us.
DIY - Where do you see investment opportunities in
the months ahead?
CE – ‘My eyes from both a business and investment
perspective are focused firmly on the Brexit
negotiations, but then there are other issues that are
far from peripheral like Trump, French elections next
year, how Italy will pan out post referendum on electoral
reform.
I believe the European markets are in for a rough ride
next year hence my move to reduce exposure there and
I think growth and income stocks will remain attractive,
so I like the look of the utility sector, especially as I think
with sterling having declined there could be some M &
A there.
I am not averse to looking at US stocks, but I will be
doing my homework on the Obama / Trump handover
before dipping my toes in there!’
DIY - What’s your biggest wish for 2017?
CE – ‘It sounds a little clichéd but I do wish for a more
stable world from a political standpoint! The main
reason being is I think this would be best for the world
economy. Unfortunately I think that may just be wishful
thinking as it looks like we’ve seen just the beginning of
a changing political landscape.
For hSo, we have big plans for 2017 and are always on
the lookout for opportunities, whether that be winning
new business or considering an acquisition, for example
of a smaller telecoms company. Whatever happens I am
certain 2017 will not be dull!’
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