Posted by Jill Kerby on January 20 2010 @ 18:32



There’s no shortage of investment suggestions out there; it’s the filtering of these recommendations according to your own needs and requirements that’s the difficult part.


Since the investments you hold depend very much on your age, your current income and financial obligations, the purpose of the investment (say, for retirement, to buy a house, for education purposes for children, etc), how much time you can or want to commit to the investment and your risk profile, you should have a pretty clear position regarding these matters BEFORE you sign a contract or hand over any money to the investment company or via a share trading account.


I’ll go one step further and suggest that since most people with pension funds or other investments are still nursing losses of at least 20% - 30% after the financial collapse that lasted from 2007 to March 2009, that you subscribe to some good investment newsletters and take a basic ‘how to’ investment course (see below for my recommendations) before you do anything.  I highly recommend the use of a good fee-based investment advisor for back-up assistance and as a way to lower fees and charges if you buy unitised investment funds and pension funds, but don’t leave all the research and recommendations to this person:  let 2010 be the year that you finally take full personal responsibility for every investment decision you make.


So what are the financial gurus that I mentioned in the first part of this article (a fortnight ago) recommending that you do with your money this year?


Eddie Hobbs has listed a number of investment sectors and individual shares that he believes are worth holding for the medium to long term.  Like all good advisors (none of whom support share speculating, by the way) he subscribes to the conditions I mentioned above:  if you are a cautious person, or retired with limited resources and living on a fixed income, clearly stock market shares are not for you and you need to consider less volatile options like bonds or cash funds, annuities, etc.


He endorses the buying of some precious metals like gold and silver (say, 5%-10% of your total fund) for anyone who is mainly holding cash on deposit. Hobbs suggests buying a low cost gold ETF, unitised fund (though this is nothing more than the ETF with middlemen charges on top) or in the form of a Perth Mint gold certificate.  The point of holding precious metals is to protect yourself against the continuous devaluing of paper currencies like the dollar, pound and euro.


As of mid-January, an ounce of gold over the past 12 months has increased by 37.89% as valued in US dollars; by 25.49% valued in euro and by 23.17% in UK pounds.  Over five years gold has increased in value in each of these three currencies by 166.67%, 142.85% and 208.75% respectively.


Eddie Hobbs also recommends that people with large cash sums protect themselves by buying some inflation-linked euro-bonds; he recommends Standard Life’s fund.  Other funds that he believes are worth holding for the medium to long term are JP Morgan’ s Global Natural Resources Fund, the Invesco Energy Fund and the KBC Alternative Energy Fund and Water Fund.


Another fee-based advisor, Vincent Digby of Impartial.ie believes that investors need to be wary of the latest stock market rally and doubts if there will be a V-shaped recovery. Developed, western markets could fall in value in 2010, he warns.


Digby is only expecting ‘modest’ inflation in the next few years and is not bullish on precious metals. However, he thinks investors should be aiming for a realistic, steady return from their portfolio of 5%-6% per annum but you can only do this with a combination of assets and funds.  These include some cash, some corporate and inflation-linked bonds, ‘soft guaranteed funds’ like Friends Firsts’ Protected Equity Plus 2 fund which includes a floor beneath which your funds will not be allowed to go.  It may also include exposure to developing or emerging markets in the Far East (like China and India) and Brazil as well funds or shares in commodity rich countries like Canada and Australia.


Digby does not recommend individual shares, but he believes that people who are interested in taking a more active part in their portfolios should consider investing in a diversified group of low cost, passive ETFs.  On the property front he thinks there is still good value in certain commercial property funds in London where the Olympic Games are being staged in 2012.


Finally, Mark Westlake of wealth managers GoldCore.com – and I must declare an interest here as he is my pension fund advisor – offers a series of default investment strategies including cautious and balanced ones that aim to reduce investment risk and volatility by creating a broad selection of asset sectors such as equities, bonds, property, commodities, via the purchase of low cost ETF’s.   The portfolio is reviewed annually in conjunction with the client and adjusted to maintain a steady growth or income stream in line with client expectations.


The following are some of the investment/financial courses, newsletters and websites that I have or continue to subscribe to and that you might consider as well. (F) indicates a free service.

     -    The investRcentre.com, one day seminar

-       The investRcentre.com weekly newsletter

-       www.eddiehobbs.com (F)

-       www.dailyreckoning.co.uk (F)

-       The Fleet Street Letter and The Right Side - see www.fleetstreetinvest.co.uk

-       Capital & Crisis, www.agorafinancial.com

-       The Growth Stock Wire, S & A Resource and Daily Wealth – see www.Stansberryresearch.com

-       www.goldcore.com (F)

-       MoneyWeek magazine

-       www.lovemoney.com (F)




2 comment(s)

  1. len@income protection on Sep 22 2011 23:53
    I actually am currently conducting a research about income/financial protection, insurances and the likes. I guess I would consider your good points. Good job!
  2. essayshark.com on Jul 06 2019 13:28
    Your investment strategy,recommendations accroding to your own needs,thanks for great methods. This jillkerby blog always generating and making about perfect financial obligations,thanks.
Leave a comment

Subscribe to Blog