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!
News sponsored by:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
What can SLI bring to the table for those who want to put their money into investment trusts?
More about this:
Look up the funds
Look up the shares
Look up the investment trusts
Look up the fund managers
More from us
- Barclays: does the buck really stop at Agius?
- Stephen Peak: this cloud may hang over Barclays for some time
- Mervyn King lays into 'deceitful' and 'shoddy' banks
- Osborne to 'examine' criminal charges against Libor abusers
- Why Bob Diamond should resign from Barclays
- Long-term investors eye ‘bombed-out’ resources stocks
Tools from Citywire Money
From the Forums+ Start a new discussion
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.