Sunday 16 September 2012

Stimulus, musings and portfolio all time highs.

FTSE100 @ 5915.65, +95.63 (-1.64%)

Interesting end to the week with my portfolio touching new all time highs on Thursday then again on Friday.
Exciting times driven by the previous weeks proposed intervention by the ECB with its unlimited bond purchase program (Super Mario powers up the markets with bond purchase program!), then ratification by the German parliament, and then latterly by the US Federal Reserve's announced of a third round of quantitative easing.

Friday's action saw my portfolio finish up a heady 4.94% in the month to date and 18.61% in the year to date.

Current events also look to be having a loosening effect on investor's attitudes to risk and could provide a boost for markets in the last quarter of the year and the run up to Christmas.
Significantly, this attitude can be seen in Friday's list of risers on the FTSE 100, with mining related companies occupying all 10 positions in the lists.
I say significant as it suggests a rotation of funds out of presumed defensives into other cyclical and growth sectors. But as mentioned previously I am not about to make wholesale changes to my portfolio on the back of it (Jam today, not tomorrow (or at least twice a year anyway).).
This helped the FTSE 100  finish up 1.64% on Friday, 3.57% in the month to date, and 6.16% in the year to date.

As posted (BAE takes off on proposed merger with EADS!), I'm not so enamoured of the recent BAE/EADS announcement though, but it looks like neither is anyone else outside of the 2 company's. 
Sunday newspapers also seem to be reporting that BAE jobs are under threat if the merger doesn't go forward, but no-one seems to trust that job losses won't occur if the merger goes ahead so probably not the most calculated argument to make.

Apple's iPhone 5 was finally announced to mixed reviews but by all accounts the company's pre-order inventory seems to have sold out within an hour. An outcome that pushed the shares to new highs of $696.98 (closing at $691.28), and could yet lift the shares even higher as Christmas comes onto the horizon.
Media reports also point to a further announcement in October which, its suggested, could be the latest iPad/iPad mini.

That could be my Christmas list sorted!

Related posts:
Super Mario powers up the markets with bond purchase program!
August 2012: Portfolio update.
Jam today, not tomorrow (or at least twice a year anyway).
BAE takes off on proposed merger with EADS!
Part 2: BAE takes off on proposed merger with EADS!

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