View the article online at http://citywire.co.uk/money/article/a601095
Diary of a Dumb Investor: Diamond’s raspberry in your face
Phew, I'm certainly glad I don't own any bank shares! I think it might be time to buy some commodities though.
Bob Diamond has been laughing at us. You, me and every other investor. Sniggering behind our backs! Perhaps even blowing big, mocking, spit-spraying raspberries.
He’s not alone. His chums in the banking industry are doing the same, falling face-first into their foie gras porridge with ear-splitting peals of laughter.
He’s probably still laughing even as politicians, journalists and the rest of them call for his head. After all, he earned (well, was paid) something like £17 million last year. To be blunt (children turn away now), he’s probably pissing himself with hilarity at the whole thing.
But, as a victim of the banks’ ongoing looting and pillaging across Britain, I’m not sour. I just want to know how I’m supposed to make investment decisions when I have no clue what's going on in the institutions at the heart of the economy.
I’m glad I sold Lloyds (LLOY.L).
Ditch property, add commodities?
Actually, I think my portfolio is looking a bit risky in general.
Where I stood on Monday: Click to enlarge
I'm thinking of selling my TR Property investment trust, but I'll need some time to get to grips with it. My problem is I don't really get what's going on in the fund (it was a purchased by my predecessor on the portfolio): it's a mix of property investments around the world (lots of it in the UK), which Dumb Investor Mark 1 stuck in the portfolio as a box-ticking exercise ('asset allocation' and all that jazz).
I don't think my dear brother really knew what he was doing.
What's missing in the portfolio, I think, is a gamble on commodities. Citywire ran an interview with a chap called Neil Gregson who says resources stocks are 'bombed out' – what he means is that they've been rejected so thoroughly that they can only rise. And he says long-term investors are buying into these shares.
Of course you don't need to work for JP Morgan to realise that a global economic downturn would give Gregson's theory an indecent spanking. But then I don't fancy my chances of predicting whether China will grow fast enough, the eurozone will get fixed, and the US will overcome its political jiggery-pokey...
Oh, this is all so difficult!
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Andrew Friend, acting co-manager*, and Marcus Langlands Pearse, co-manager of the Henderson UK Property Unit Trust (HUKPUT), provide an overview of the key risks and opportunities for the UK commercial property market.
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