Skip to main content

Investment strategy for 2013, what’s going on in Investment Management?

 

Quite simply after a couple of years sitting in cash, fixed interest and bonds, the appetite for the share market is returning.  Based on a recent Investment Management survey conducted by HSBC, 75% of global managers surveyed were holding an overweight view toward equities.  Part of this may be attributable to more positive sentiment toward the global economy.

Interesting statistic, but here’s the thing – what are you going to do?

After a period of time where uncertainty and nervousness has effectively corralled investors into saving, at the expense of both property and shares, is it time for you to get back in?

The answer, in my opinion, is a resounding yes.  That said, with care and caution as to what stocks to hold as always.

Looking locally at the Australian market, for example, the push up in iron ore prices from $90 USD to $145 USD, saw BHP drift down to around $30.70 – currently sitting at $37.16 (24th Jan close).  That, by the way is a move equivalent to around 7 years’ interest with the current RBA rate of 3%!

So where else is the opportunity?? Well the banks – ANZ in particular – are approaching their dividend season, so perhaps some exposure to this and the associated fully franked dividends may be part of your 2013 Investment Strategy.  And then of course, we can layer on top of this, value add by selling calls, generating options premium.

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Ensuring Your Legacy: The Importance of Estate Planning and Wealth Preservation

Introduction Estate planning and wealth preservation are vital components of financial management that extend far beyond the realm of the affluent. Regardless of one’s economic status, creating a comprehensive plan ensures the orderly distribution of assets and minimizes potential disputes among heirs. This article delves into the significance of estate planning and wealth preservation, exploring key strategies to safeguard and transfer wealth effectively. Understanding Estate Planning Estate planning is the process of organizing and managing one’s assets during their lifetime and determining their distribution after death. It involves a thorough examination of financial holdings, including real estate, investments, business interests, and personal belongings. The primary goals of estate planning are to minimize taxes, ensure a smooth transfer of assets, and provide for loved ones in accordance with the individual’s wishes. One essential component of estate ...
Post a Comment
Read more

Why Investment News Will Help You Make More Confident Decisions - Australian Investment Education

  Many “would be” investors think the best way to make profitable trades is to get a trading platform, look at the charts and just give it a go. If only it were that easy… Over a thirty year professional trading career and having helped “rehab” thousands of investors, I have learned that there is a lot more to it than that! And that’s where Investment News comes in.
Post a Comment
Read more

Navigating the Top 5 Market Trends in 2024 - Andrew Baxter

  1. Artificial Intelligence and Tech Stocks Artificial intelligence (AI) continues to dominate discussions in the financial markets . Tech stocks, particularly those involved in AI, have shown remarkable performance. The NASDAQ, driven by companies like Nvidia, has seen impressive gains, echoing the strong performance of 2023. However, this sector’s success also brings volatility. Overvaluation and shifting market sentiment could lead to sudden downturns. It’s crucial to monitor these stocks carefully and consider diversifying your portfolio to avoid overexposure to this volatile sector. 2. ESG Investing Environmental, Social, and Governance (ESG) investing has been a hot topic throughout 2024. However, the enthusiasm for ESG seems to be waning in the face of economic pressures. Countries like the UK have reconsidered their carbon-neutral goals due to economic constraints, and companies like Fortescue Metals have scaled back their green energy projects. While ESG remains important...
Post a Comment
Read more