Green Investment Alert for Higher Risk Investment

Green Investment Alert for Higher Risk Investment.

Monday trading so far (12 noon UK): China closed down -8.49% Japan closed down -4.61% Hong Kong closed down -5.17% India closed down -3.78%.

In Europe, markets are open with the UK, Germany and France all trading down at around -2.5% to -4.5% but now holding below 6,000 for FTSE 100. When North America wakes up, we expect the same. The UK GDP forecast by the CBI has been revised up today and many are expecting the UK economy to warm up leading to interest rate increases later this year or early next year to curb inflation. A global slowdown is expected but in UK and US many are expecting growth.

Why have we gone green? We are higher risk investors and accept +/-50% volatility. Markets could go either way over the next few days and there is little point in us trying to second guess/call the bottom of the market. Even if markets fall another 10-20% after we have now bought back in we are accepting the risk for a long term ‘bet’ as we believe we are buying back in at a reasonable level as we came out at 6,800+. We repeat our Saturday message, we have 15-20 years before retirement age, so we are gambling, taking a higher risk position today and will wait for recovery which may take a few years. Markets may fall further but we are happy to buy back in and absorb any further falls. We are now green for UK and US markets only.

WARNING:  NO ADVICE GIVEN OR DEEMED TO BE GIVEN:  WE CANNOT ADVISE WHEN A GOOD TIME TO INVEST OR NOT IS – INVESTMENT ALERTS ARE ISSUED FOR INFORMATION ONLY ON OUR OWN PERSONAL VIEWS OF THE MARKETS.  Please do not ask us for advice on what to do – if we knew exactly what will happen with markets, we would be billionaires.  This alert service is purely for information to let you know when we personally invest our own money in/out of markets.

What should you do?

We respect that many clients do like to follow what we do. We repeat: WE CANNOT ADVISE WHEN A GOOD TIME TO INVEST OR NOT IS.

We have made a high risk decision and are prepared to accept more losses. If you decide to do the same, this is your decision only. This is a high risk decision for longer term growth. If you are in any doubt whatsoever, the safe position is to remain in cash park until markets stabilise and at that point we are likely to issue a ‘blanket’ green, but who knows when?

If you want to reverse out the UK and US fund switches that were done in January and February following the Red Alerts remember this is summer holiday season. We, like many businesses, have staff on vacation, so if you want us to action any fund switches we can give no guarantee that this will happen today or tomorrow. The best thing is do it yourself online or telephone your companies in the following order:

1. Online Access: switch funds online yourself
2. Telephone the investment/pension company direct and give the switch instructions yourself
3. Last Resort: Email us with your specific switch instructions.
4. Warning: If you simply email us with “we would like to go green” or “please switch me back into markets” or “please switch me to UK/US funds” or “I am on holiday, please switch me when you go green” etc. We have already received these types of emails and we are sorry, but these must be rejected, we cannot accept them. We are not “discretionary fund managers” and we cannot switch your funds at our whim/discretion.
5. Please be specific: For example,
   • “Please reverse out the UK and US fund switches processed following the Red Alerts from earlier this year” or
   • “Please switch X% of my X Fund to X UK or X US funds” or
   • “Please reverse the switches to cash based funds that were processed following the Red Alerts earlier this year for all of my investment/pension funds”.
   • "Please reinvest my money back into the stock markets in the proportion and in the funds that they were previously invested"
6. We can only process switch instructions on a first come, first served basis. We suggest you contact companies direct if you wish to switch today.

Video: What to do on a Green Investment Alert /what_to_do_on_green_investment_alert/video/438