subject: Managed Accounts Investment Notification – Sale of BHP and WPL [print this page] Managed Accounts Investment Notification Sale of BHP and WPL
After much discussion, today we made the decision to sell our holdings in the most volatile and macro-sensitive stocks we hold, BHP and WPL. BHP made +4.5% and WPL +5.5% before costs, which has added a gross 1.55% to the value of the total portfolio. Our Managed Accounts are now 40% invested in the market and 60% in cash.
While the decision to sell was a littler earlier than we had initially targeted, we still want to maintain a high level of caution in the market as it accelerates on the upside. The market reached 4610 points or thereabouts after touching a low of 4200 just one month ago, and this represents a 20% total move (10% down and then back up again). We targeted 4650 in any case, and 40 points is not a lot, considering that volatility.
One more major piece of information which may turn investor attention; an emergency Budget of the new British Coalition Government will be released 9:30pm our time tonight (June 22nd), in which, apparently "life changing" and "inevitably painful" cuts will be announced to tackle the growing UK debt. We're aware that major news like this could possibly turn attention back to events in Europe, and weaken the market into June 30 rather than strengthen it as we would have expected.
From within 40-90 points of our target range, we now consider it prudent to reduce exposure to the market, and lock in further profits.
If you would like to speak with me about anything at all, please call the desk.
