Tuesday 27 September 2011

Tesco shares update: Warren Buffett sets the tills ringing and ups stake.

The Express has reported a possible vote of confidence in Tesco's long term fortunes today with Warren Buffett's Berkshire Hathaway fund spending around £120m upping its stake in the company.
The additional 34 million shares lifts Berkshire's stake to 3.6%.

However, Warren Buffett himself is reported as saying that the company should "look hard" at its loss making US business.

Article links:
- www.express.co.uk: BUFFETT BOOSTS TESCO

Apple shares: supply chain update.

Apple @ $403.15, -$1.15 (-0.28%).

A JP Morgan report released yesterday suggests that the supply chain for the IPad has seen a reduction in orders from the company of about 25%.
No confirmation has been made by Apple though and, despite speculation about slowing growth and competition (still a possibility) this would still mean the supply chain having to deliver more than the 10-12 million units that analysts have worked into their forecasts (www.dailymail.co.uk: Tablet overdose? Apple set to cut iPad orders by 25%, says analyst).

Could be a case of managing the supply chain against a backdrop of global recession; of monitoring inventory hang-overs ahead of the next model; or conceding ground to rivals, who knows at this stage? Plenty of commentary out there suggests that rivals are thin on the ground hence the pushing back of IPad3 (Apple update: IPad 3.)
However, there does seem to be interest in the forthcoming Amazon tablet although it has to be said that the main expectation is on price (www.eweek.comAmazon Tablet Threatens Apple iPad, Nook, RIM PlayBook.). 
But, if it is competitive on performance, aesthetics and ease of use, then price will become a factor and have the potential to hit Apple's margins.
Although, it also has to be said that there is already a price war being waged by non-Apple tablet suppliers as they seek to shift excess inventory due to over exuberant in-house sales forecasts on seemingly uncompetitive products. Hewlett Packard are reported to be selling their discontinued TouchPad for $99.

Mark Moskowitz (JP Morgan Analyst), also suggests that average selling prices will continue to decline but that the tablet market will continue to grow with 2011 forecasts upped to 51.9m units and 2012  at 72.4m units (previously 76.3m) (www.appleinsider.com: JP Morgan increases 2011 tablet forecast to 51.9M as iPad dominates).
Even without price competition I would expect prices to decline with volume efficiencies and a fast moving technology curve but it is interesting to see that analysts don't think the tablet "fad" is going away.

Looking at the speed in which fortunes can change in the consumer tech markets and the backdrop of a global recession/economic disaster, it goes without saying that the fortunes and future direction of Apple will become more critically analysed now that Steve Jobs has officially departed the CEO role.  
There is speculation of a dividend but I think it will be difficult for this to compensate for the initial loss of perception as a growth company and the potential lower rebasing of the share price.
So going forward, and keeping one eye on the portfolio, Apple is one to keep an eye on for any threat to its growth and margins.

Anyway, despite falling by $11 at one point yesterday, Apple seems to have recovered some of its poise by the close along with the shares of its suppliers.

Article links:
- www.eweek.comAmazon Tablet Threatens Apple iPad, Nook, RIM PlayBook


Earlier posts:
- Shares update: Apple's third quarter results.
- Apple 2nd quarter update - profits up 95%!
- Apple update: Ipad 2!   
- Is Android a reason to invest in Google?
- Globally Diversified Technology, Growth, and Hedge portfolio!!!

Wednesday 21 September 2011

Boring old National Grid: up 15.73% year to date!

National Grid @ 639.5p, +1p (+0.16%)

I can't see too much upside on National Grid until the year-end results come through in May 2012 and even then I wouldn't expect anything spectacular unless it be related to the future direction of the company's US operations
But, spectacular isn't the name of the game here!

What I would be looking for is: confirmation that capital investment plans are comfortably funded, signs that debt levels are being managed, and a strong link between earnings and inflation.

But, this post wasn't necessarily about looking forward. Instead it is more about looking at the performance of National Grid's shares to date.
As it stands, the shares have performed very strongly in this recent period of volatility and pushed their intra-day 52 week high to 640p this morning.
640p represents a YTD gain of 15.73% against the FTSE 100 which, at 5351.63, is down by 10.73%. 
Its worth noting that the FTSE's performance includes National Grid's gains in it but that its weighting in the index is insufficient to balance the sectors that have fallen back.
And then there is the dividend which has yielded a further 6.5% this year which, when added to the performance of the share price represents a total YTD gain of 22.23% v. the FTSE's -10.73%. 
To be fair I haven't calculated a yield for the FTSE but it probably averages about 4% which would reduce the loss to -6.73%. Still, the difference between 22.23% and -6.73% is 28.96%!

A number of discussion points stand out here:
- the possible defensive qualities of National Grid as it operates as a virtual monopoly to the UK with its utility services infrastructure of transmission pipes and wires. As such this should give it unspectacular but steady revenues that are predictable within a narrow range. 
I can't foresee a time that a competitive alternative could be planned, funded and, more importantly, be approved. The disruption and cost is too great and the political will is just not there.
- earnings linked to inflation. Being regulated gives it both advantages and disadvantages in terms of what it can charge but serves to smooth things out I feel. Inevitably, inflation is used as a benchmark so I would expect a strong link between earnings and inflation. Capital requirements are worth noting here as well as they are also taken into account by the regulator.
- some confidence that the dividend will be maintained given the previous points.
- the dividend itself, at a forecast 6.4%, is comfortably at the top-end of yields in the utility sectors (Scottish and Southern is 6.15% but United Utilities is 5.3%).
- the utility sector choice continues to diminish with Northumbrian Water the next to disappear given a recently accepted offer. This means less choice when there is a market flight to defensive sectors. Less choice means more premium when supply can't meet demand.

Finally, the performance of National Grid goes some way to demonstrating the possible virtues of diversification and some attempt at balance in a portfolio. 
It may seem a bit boring and profit denting when markets are in their bull phase but I am currently very appreciative of the steadier, more defensive shares in the portfolio. National Grid has (currently) managed to balance some of my heavier losses with capital gains, and its dividend has helped to fund my hopefully, opportunistic purchases in the last couple of months.

The portfolio is far from perfect and will, no doubt, be hit hard should the market's fears become reality (from overreaction if nothing else).

I also expect that should the market begin to stabilise and recover, the "defensive" qualities of National Grid will be less in demand which will likely see the shares pull back from the current 52 week highs. But then I can always content myself with the dividend and the fact that any pull back is a consolidation of its YTD gains.
As ever, there is also a bit of caution required for possible surprises from the company. The most recent being last year's rights issue hence my looking for confirmation that capital investment plans are adequately funded.

What are my ambitions for National Grid?
Well, I reckon that from hereon in, if the shares could gain by 4.7% per annum and the company matches this with a similar increase to the dividend then this would give me a 100% gain by 2016 at which point it will also be yielding almost 8% against my original investment.
Is this too ambitious you might ask (or not ambitious enough?).
Well it might be, but the company has an intent to increase its dividend by 8% this year and next and, by virtue of it being in a regulated market, the company's earnings are linked to inflation (typically RPI less efficiency savings plus capital requirements).

At this point, I also appreciate that for many investors this isn't sufficiently attractive on its own but it is all about finding and balancing your own levels and expectations of risk and reward, and portfolio diversification means that I have other investments in which I have greater expectations.

Carry 4.7% forward again and I reckon that I could get my investment back a second time in just 5 years more, 2021 at which point the shares could be yielding over 10% against my original investment.

However, on a cautionary note, markets and share prices don't travel in straight lines but I will be keeping an interested eye on boring old National Grid!

Related posts:
- August 2011: Portfolio Update.
- National Grid Powers up: Interim Management Statement
- National Grid preliminary results y/e 31 March 2011

Tuesday 20 September 2011

Apple update: IPad 3.

Interesting to read some of the views on IPad's and the tablet computing sector which suggests that the IPad 2 has very few competitors in the market at the present time (although things can change very quickly).

"With HP is giving up its TouchPad, Samsung Galaxy Tab 10.1 is stuck with patent issue, the tablets by MMI and RIM are disappointing and Sony’s tablet lacks the refinement of the iPad— Moskowitz points at the lackluster competition for Apple’s iPad. ( J.P Morgan’s Mark Moskowitz)
http://www.ibtimes.com: Apple in no Hurry to Release iPad 3? Two iPhones Coming in 2011.

As a result the article goes on to suggest that any upgrade ie. IPad 3 will not now be unveiled until 2012.
Interesting because it leaves the field open for IPad 2 sales to be maximised.

More importantly, Apple shares continue to move ahead as investors begin to anticipate 4th quarter results. 
And yesterday the shares breached the $400 level finishing the day at $411.90. Which means that, with the added benefit of a strengthened dollar (£1.5678 : £1), the shares have gained 116.80% over 21 months whilst being held in the virtual portfolio (27.03% year to date).

Apple @ $411.90, +$11.40 (+2.85%).

Related articles:

Earlier posts:
- Shares update: Apple's third quarter results.
- Apple 2nd quarter update - profits up 95%!
- Apple update: Ipad 2!   
- Is Android a reason to invest in Google?
Globally Diversified Technology, Growth, and Hedge portfolio!!!

Market tipping point but which way from here?

Looks like we are reaching a tipping point with no clear view on which way it might go from here.
Wall St is holding its breath in the hope of more stimulus from the 2 day Federal Reserve meeting that is about to start.
Over in Europe there is a tea party of egos going on with the IMF, the ECB and plenty of Euro state representatives looking for a Greek solution. Again, there is Federal Reserve representation here in the form of Tim Geithner, the Treasury Secretary, which is also causing some friction.

In Germany, Angela Merkel's party is under pressure in regional elections.
French banks are also under pressure with rumours of cash withdrawals by Siemens and confirmation from China of a reduction in its Forex activities with Europe.


The Credit rating agencies continue to make hay and throw it on the bonfire with a downgrade on Italy and a deathwatch on French banks.

Currently in the eye of the storm the Greek Prime Minister has speculated on an EU referendum for its voters which he speculates might support his austerity measures (what planet?).
The Greeks have also launched some kind of fund raising today with 13 week bonds which is probably doomed to failure.


Its looking decidedly rocky from hereon in.

Thursday 15 September 2011

National Grid Bond issue: Confusing to say the least.

I have just been on a merry old chase around t'internet with regard to the National Grid Corporate Bond issue. 
And, it appears that my interpretation was not correct.

Confusingly it doesn't appear that the bonds are yielding RPI+1.25% more like 1.25 * the change in the RPI followed by an RPI adjustment to your capital upon maturity.
 
Using examples from page 4 and 5 of the Information Booklet:
http://www.nationalgrid.com: Information Booklet


- if the RPI from base to payment point shows an increase of 5.015%% then the 1.25% will also increase by 5.015% i.e.1.25%*1.05 = 1.313%

Against the minimum investment of £2000 this would result in an annual payment of  £26.40 or a bi-annual £13.20 rounded to the nearest penny.

There is also the risk that with deflation the 1.25% could be less than 1.25%.
The redeeming element to all this is that upon reaching maturity there is an application of inflation to the original investment so according to the example on page 5 of the document a 5% annual rate of inflation would result in an inflationery increase of 62.905% over 10 years so the minimum £2000 invested would be returned with an additional £1258.20 or £3258.20 in total

So it doesn't quite do what it apparently said on the tin but does get there eventually in a hoped for capital return if held to maturity. 
There is an added unknown here of how this might effect the trading price of the bonds in issue as investors speculate over the maturity value which might provide an opportunity to "cash in" inside the 10 years. But, being the first of its kind I am only speculating at how it might behave.

I am not sure that it is for me in its current form as it starts to look a clear 10 year investment and I would probably feel more comfortable holding the shares and, with them, a better understanding of how they might behave. 
But, all things being equal, it looks like an alternative to the "guaranteed capital" products that periodically flood the market albeit with a 10 year horizon. The RPI replacing stock market performance that these products sell themselves on whilst guaranteeing your capital. Using the last 10 years as an example you could probably speculate that tieing your returns to RPI would have given you more profit than a stock market investment.

Anyway, the information document can be found below with the example calculations on pages 4 and 5. 
I do have to thank the following Motley Fool article (http://www.fool.co.ukAn Inflation-Proof Income And Capital Returns Opportunity), its author Malcolm Wheatley, and the comments made by fellow readers which gave me a much needed moment of clarity.

Related article:

Information booklet:
- http://www.nationalgrid.com/NR/rdonlyres/C7555550-52CD-4CDD-9833-7023554AEE80/49009/10199_1_NG_retailbond_brochure_v6_Final_Singles.pdf

Tuesday 13 September 2011

IG Interim Management Statement

IG Group Holdings @ 444p, +11.6p (+2.68%)

IG came back to the market today to confirm its August statement that quarterly revenues are benefitting from the volatility in the markets. In fact the company bettered its estimate of £94m by achieving £100m in the period from the 1 June to the 12 September. This is 26% higher than the £79m achieved in the corresponding period last year.
With the exception of Japan and its closed sporting business all areas of the groups operations were significantly ahead of last year.

So despite the doomsayers there might just be some life left in this industry leading company with a strong balance sheet and 5% yield. 
To date the portfolio's holding in IG has returned 47.57% in capital gains and a further 7.9% in dividends. Over 21 months this amounts to a healthy 55.47%.
As you would expect I continue to rate IG as a hold.


Interim Management Statement:

Related articles:

Related posts:

National Grid to launch new Bond.

This post has been amended. Please also read: National Grid Bond Issue: Confusing to say the least

Big news for savers in the form of todays announcement from National Grid where they are looking to issue the very first corporate bond linked to inflation!

Regular readers will be aware of my liking for National Savings Index Linked Savings Certificates. Well, the headline numbers for the National Grid version compare very favourably:
-  minimum £2000 investment (£100 increments thereafter).
- 10 years to maturity
- bi-annual interest payments of 1.25% adusted for RPI (before tax)
- eligible for holding within ISA's/SIPP's (provider allowing)
- final payment will be guaranteed face value of bond plus an additional RPI adjusted payment. If inflation is negative then face value will be paid.
- they should be tradeable like any other corporate bond.

The offer is open until 29th September unless demand proves greater than availability.
National Grid is a BBB+ rated company but as many analysts are aware, the UK cannot really function without its infrastructure and it is much too costly for a competitive alternative to be put in place even if the political and planning will was there to enable it.

The bonds will obviously fluctuate in the market as supply and demand forces take effect. This might present a trading opportunity but if you were to buy and hold to maturity then there should be no stamp duty or dealing charges.
Holding them within an ISA or SIPP should also shield you from any income or capital gain tax liability as well.

Elsewhere UBS has downgraded National Grid to Neutral from buy (www.sharecast.com: Broker snap: UBS downgrades National Grid on share price strength) following the company's outperformance of the utility sector this year (something the virtual portfolio has really appreciated), the fact that it has reached the brokers target price of 615p, and no new factors to drive further outperformance. UBS speculates that new catalysts will come from the US side of the business but not until the second half of 2012.
However, as mentioned earlier UBS is an analyst that recognises the strengths of National Grid's business along with the further fact of no exposure to sovereign debt.

National Grid @ 619p, -3p (-0.48%)

Publication of final terms:
- http://www.rns-pdf.londonstockexchange.com/rns/1536O_1-2011-9-13.pdf 

Related articles:

Thursday 8 September 2011

Globally Diversified Technology, Growth, and Hedge portfolio update.

Well my Globally Diversified Technology, Growth, and Hedge portfolio (Globally Diversified Technology, Growth, and Hedge portfolio!!! ) has had mixed success with one clear star in Apple, one average performer in Microsoft and an accident prone patient needing resuscitating in Cisco.

In the August portfolio update the performance of the 3 was as follows:


YTD20 Months
Apple$385.1014.46%95.36%
Microsoft$26.55-8.83%5.75%
Cisco$15.53-26.38%-27.76%


-3.2%23.8%

There have been a couple of small dividends from Cisco and Microsoft and the exchange rate hasn't really been a factor so its clear that Cisco has proven to be a drag on performance. But, as detailed in the August and July updates I had resigned myself to holding what is still a profitable company in the hope that it could eventually manage analysts expectations and return to growth despite competitive threats.
However, given the current turmoil in which a rock bottom Cisco hasn't really fallen by much further it seemed to be too good an opportunity not to bring in a company with, dare I say, more reliable prospects.
The company in question being General Electric which has fallen to a similar valuation on a 2 year view with its forecast sub 10 price earnings for 2012 and has gone through a significant reshaping of the business since Jeff Immelt, the CEO, joined the company just 4 days before 9/11 reshaped the world..
Sat on a cash pile of $91bn (according to Bloomberg in a recent interview with CEO Jeff Immelt http://www.bloomberg.com: GE Beating S&P Is Profit Goal as Immelt Decade Skirts Abyss), and with double digit earnings growth forecast for the next 2 years there seems to be some promise in them.

A key goal in the next two years is profit growth that beats the Standard & Poor’s 500 Index, he said in an interview. “We feel like we can deliver for investors.”  (http://www.bloomberg.com: GE Beating S&P Is Profit Goal as Immelt Decade Skirts Abyss).

The shares have fallen around 20% in the current shake out given their position as a manufacturer geared to domestic and global markets. But, given the various references made to them in recent posts with regard to the 737 Max and A320 neo (and its leading position in large civil engines) I am starting to think that the CEO might just be turning the company around. 

Running with the strap line "Imagination at Work", the company continues to be diversified. Immelt has re-focussed the company on energy, health care and transportation but it continues to have interests right across the board in the provision of infrastructure (rail, water etc), lighting and consumer goods, and the recogniseable G.E Capital.

Anyway, Cisco has gone at $15.53 and GE has come in at $15.73 with the added benefit of a forecast 3.6% yield (or 3.06% less 15% withholding tax).

Significantly, I think that is the first sale from the portfolio since I starting writing my thoughts but am happy that it puts the portfolio into a stronger position particularly with GE's position as a bellweather of the US economy due to its size and position as a manufacturer. This comes with the added benefit of global markets and a significant geographic spread of revenues.

Related articles:

Earlier posts:

Apple to launch IPad 2 in China!


Apple @ $385.31, +$1.42 (+0.37%)

Interesting snippet in the Wall St Journal (http://online.wsj.com: Apple Closer to Offering 3G iPad 2 in China) regarding prospects for the IPad 2 in China following licensing by Apple of a device with third-generation high-speed wireless data capabilities.
The license issued by China's Telecommunication Equipment Certification Center is an essential requirement for the company to begin official sales in China.
Given the scale of Apple's 3rd quarter results and China's 13.3% contribution to the reported record $28.57bn revenues, I hadn't appreciated that the IPad 2 isn't on sale in China yet (officially), so it seems another potentially big opportunity to fuel future sales.

And, with IPhone 5 also just around the corner the immediate future continues to be promising despite changes at the helm.


Related articles:

Earlier posts:
- Shares update: Apple's third quarter results.
- Apple 2nd quarter update - profits up 95%!
- Apple update: Ipad 2!   
- Is Android a reason to invest in Google?
Globally Diversified Technology, Growth, and Hedge portfolio!!!

Wednesday 7 September 2011

NS&I Savings Certificates withdrawn.

I notice that the NS&I Savings certificates have now been withdrawn after 4 months. Hopefully many of you will now be benefitting from the RPI+0.5% yield that comes with the 5 year Index linked certificates.
If you are also registered for notifications then you should soon receive the following from NS&I.

"I’m writing to let you know that all current Issues of NS&I Savings Certificates were withdrawn from general sale at close of business on 6 September 2011.

The latest Issues of Savings Certificates had been on sale for almost four months (since 12 May 2011) and have been very popular. When we launched the Issues we expected the amount invested to be substantial, and our expectations have now been met.

We’re sorry if you haven’t been able to invest on this occasion, but we will contact you again as soon as the next Issues go on general sale."
(NS&I Customer Management).

Roll on the next issues!

Previous posts:

Related articles/links:

Sunday 4 September 2011

August 2011: Portfolio Update.

Well August was, and no doubt September will also be, a roller coaster of a month but, surprisingly the virtual portfolio ended August back in positive territory for 2011.

The index for the portfolio actually ended August on 1308.04, 3.47% up on its 2011 starting point of 1264.20 which continues to stand favourable comparison with the FTSE 100 which, at 5394.53, has ended the month still -0.34% against its 2009 year-end position and -9.65% year to date. 
This is all despite the FTSE100 recovering from the intra-day low of 4801 seen on the 19th August.


Both the portfolio and the FTSE have again pulled back in the first 2 trading days of September following a disappointing US non-farm payrolls report which came through even worse than the already downgraded estimates, feeding further fears that the US is sliding back into recession.
Further impact news came through with the announcement that America's Federal Housing Finance Agency is suing 17 major banks for what is effectively the mis-selling of mortgage products to the tune of $200bn (£123bn) to the two state owned mortgage companies Freddie Mac and Fanny Mae.
The list includes RBS, Barclays, and HSBC, with RBS seemingly second only, in scale of misdemeanour, to JP Morgan Chase with a total of £18.5bn of mortgage products sold. More worry for the banks then and, in the case of RBS, for tax payers money.


Back to the portfolio though and what took place in August apart from my reaching for a tin hat. Well, in the shake out it initially fell by around 7% in the month and then recovered from an August low which hit approx. -2.5% year to date. Disappointing but, in context, bears little relation to the concerns and amplified fear in media news stories currently doing the rounds.  


This has prompted me to make some additions and changes to the portfolio though:
- following a fall of around 20% I added to the portfolio's holding in Aviva although I wasn't even close to catching the August low point.
- Vodaphone also came in with its forecast 7% yield and the re-instated dividend from its investment in Verizon Wireless.
- Cisco was thrown out. Before the recent chaos I had made up my mind to keep Cisco and wait for a slow recovery but given the falls across the market my view has changed. Cisco was seemingly already at a bottom and hasn't fallen much further with the market. But, "better" shares with better prospects for recovery have since fallen to similar valuations. One such is General Electric which has been added to the portfolio and will show in September's update as a replacement for Cisco.


In other portfolio activity, Cisco gave up a last quarterly dividend of approx. 3.6p per share and National Grid also added to the portfolio's cash position with a dividend of 23.47p per share.
Its also worth noting that, if maintained, the forecast yield for the portfolio has increased relative to its value with the August additions.

Virtual Portfolio - Merchant Adventurer's Index





Forecast 1 month YTD 20 Months

% holding Div. yield % gain % gain % gain
R-R 29.62% 2.69% -1.92% 2.73% 32.37%
National Grid 19.13% 6.31% 4.02% 12.30% 14.42%
Inv. Perp. High Inc. *** 6.77% 0.00% -5.61% 0.01% 12.06%
Aviva 6.25% 7.94% -10.33% -9.43% -6.61%
BP 4.12% 4.36% -12.70% -13.55% -7.55%
Apple ** 4.23% 0.00% -0.37% 14.46% 95.36%
IG Group 3.32% 4.77% 1.04% -12.31% 48.64%
William Hill 2.95% 4.06% -2.25% 32.22% 32.00%
BG Group 2.72% 1.10% -7.76% 2.78% 22.20%
Centrica 2.63% 5.10% -2.41% -9.77% -5.26%
Morrisons 2.55% 3.72% -0.65% 8.00% 14.21%
Scottish and Southern 2.51% 6.23% -0.54% 6.12% 12.95%
Microsoft ** 2.35% 2.00% -2.11% -8.83% 5.75%
Tesco 2.12% 4.13% -1.26% -5.09% -5.09%
BAE Systems 1.92% 6.71% -9.44% -16.58% -13.77%
Vodafone 2.18% 6.81% -0.08% -0.08% -0.08%
Cisco ** 1.61% 0.48% -1.74% -26.38% -27.76%
Cash 3.02% 0.00% -55.27% -46.03%







100.00% 3.79%










1 Month YTD 20 Months
Virtual Portfolio gain (incl. Dividends)
-1.54% 3.47% 30.80%
FTSE gain (excl. Dividends)
-7.23% -9.65% -0.34%
- 1 month gain   5815.19 - 5394.53



- YTD gain         5971.01 - 5394.53



- 20 month gain 5412.88 - 5394.53









Transactions:




01/08/2011 Dividends Cisco @ 3.6p per share


08/08/2011 Buy Aviva @ 341.5p

09/08/2011 Buy Vodaphone @ 160.334p
17/08/2011 Dividends Nat. Grid @ 23.47p per share


30/08/2011 Sell Cisco @ $15.59

06/08/2011 Fees Account management













Notes: 




*     US Dividends are adjusted for exchange rate and 15% withholding tax)
**   Sterling : Dollar exchange rate = £1: $1.6267 as at 31/08/11

*** Invesco Perpetual Accumulation units (i.e. Dividends re-invested)


Moving onto the chart comparing the Portfolio index to that of the FTSE100, the divergence of the 2 indexes continues (thankfully so in the current chaos).  
Significantly, the FTSE's performance has actually forced me to amend the chart with the addition of a lower segment to reflect its fall below the 2009 end point (and starting point for the comparison).

Click to enlarge, back button to return.

Looking ahead, there is a key point coming up (no, not UK interest rates), as the US Federal Open Market Committee meet up for September with the main discussion expected to be around what action, if any, should be taken to maintain/re-ignite the US economic recovery. 

September also brings the 10th Anniversary of 9/11.

Whatever the outcome, it looks like it will remain a bumby ride for the foreseeable. 
Tactically I am actually weighing the merits of adding more funds to the portfolio in order to take advantage (if it is an advantage!), of the current valuations. 

Only time will tell if this is the case.



Related articles:
- www.citywire.co.uk: FTSE sinks 2.3% as markets twist on dismal US jobs report
- www.freep.com: Jobs report wipes out S&P's gain


Links to previous Portfolio updates: 
- May 2011: Portfolio Update
- April 2011: Portfolio Update