Page 4 - DIY Magazine September 2018

I JUST DON’T TRUST THE OCTOPUS; MY MONEY’S WITH THE MONKEY!
In a recent story ‘Bashing forecasters from footie to FTSE; is it BBQ time for Paul the octopus?’ DIY Investor contested that there is more than a little science behind the art of soothsaying.
Paul earned his fish supper when establishing himself as a (the?...Ed) world renowned marine oracle with
his predictions at the 2010 World Cup, but in truth we all love to see the experts get a bloody nose; oh the schadenfreude to be had watching a Master of Wine swooning over a Macclesfield Montrachet or a Premier Crewe in a blind tasting.
Mr Adam Monk, Chicago Sun-Times’ investment guru outperformed the major indexes for four years despite, or perhaps because, he was a Brazilian cinnamon-ring tail cebus monkey; chimp Raven became the 22nd most profitable money manager in the US when she added 213% to her MonkeyDex portfolio in 2000.
So, want to know how markets will react to a US/China trade war, a no-deal Brexit, the tide of populism and economic, political and meteorological mayhem – grab a bag of mussels and some of Fyffe’s finest and head off to Regent’s Park.
Or is it time to listen to the experts? Every day we see more ‘evidence’ of impending financial Armageddon, yet markets remain near all time highs.
This issue delivers a fascinating contrast between
the ‘masterly inaction’ of our tame DIY investors – real people trading their own money – and the calming reassurance from the pros that they have seen it all before and are ready for anything.
In the former camp, Wheelie Dealer explains the importance of being idle; British Investor is back on form and Humbug and Fagin continue to duke it out as The Great British Trade Off moves into its second year. Our investors expect volatility and believe in the benefits of being in quality stocks and taking a long term view; ever the opportunist, trader Fagin is looking to bob and weave and aims to double his money.
From the professional ranks JP Morgan looks at
Investment Trusts for Income and Janus Henderson updates us re the City of London Trust; stalwart investment companies that have thrived through many economic cycles, often serving up increasing dividends year on year over decades.
Old Mutual explains what enables a fund to outperform in difficult markets and Jupiter extols the virtues of Consistency and Patience in a Changing World; Square Mile considers Success Factors for Multi- Asset Selection.
Saltydog Investor reassesses as the winding down
of QE causes bonds and gilts to underperform; in his inimitable fashion, Mr Bond contrasts the fortunes of two retail bonds for income seekers whilst pondering a Hermes Birkin bag for Pussy Galore – shhhocking! Elsewhere we get a glimpse of the future – Easy as
123 explains why we are all going to have to take
more personal financial responsibility; we learn how FCA is battling for more competition and greater fee transparency for DIY investors and how Amazon could be primed to offer wealth management.
Despite the ‘evidence’ - some believe the price of copper signals impending doom, others that the strength of the US dollar and rising interest rates could crush emerging market economies, yet more that the tech bubble is set to burst – it hasn’t happened yet, and the S&P 500 is at record levels.
Financial education is crucial and DIY Investor believes that access to good information and expert opinion are key to achieving financial independence; or perhaps you’d like to grab a bag of Percy Dalton’s and take your chance?
We always love to hear from you – ask@diyinvestor.net
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DIY Investor Magazine | Sep 2018 4