General Investment Strategy Part 2 – The Present

Over the past few years I believe I have matured somewhat. There is no substitution for your own research and everyone has their own agenda. That of course means that those reading this should also do their own research and not rely on anything I say as gospel.

 

My investment strategy fits my name, Risky Bear. I assume that the economy will falter at some point and I’m bearish on the FTSE, but we have to take risks to make money. The key is keeping abreast of news and developments for both the companies in your portfolio whilst being mindful of the wider economic environment.

 

I therefore seek FTSE high income recovery stocks.

 

The Pro’s

 

  • High dividend yield allows for an income stream even if the share price drops.
  • A share price recovery provides significant and swift increases in portfolio value.
  • FTSE Companies, with exceptions, have significant capital resources or rotating debt facilities that allow them to weather financial storms.

 

The Cons

  • Dividends are always subject to review.
  • As the company’s shares are down, there may be a good underlying reason for this.
  • FTSE stocks are subject to high profile media attention, making them the first targets on bad macro economic news.

 

Naturally I am the belief that the pro’s outweigh the cons. Over the course of several posts I will delve into each company in which I hold an investment and explain why this is the case. But as a teaser, I hold:-

 

*           Virgin Money (VM.)

*           HSBC (HSBA)

*           Royal Dutch Shell (RDSB)

*           Easyjet (EZJ)

 

Why, well that’s for the next post.

 

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