Typical questions from the ladies and gentlemen of the press this week. They love putting me and other gobshite experts on the spot!
1. Where do you think the FTSE 100 will be at the end of 2020?
Honestly. Absolutely no idea. It’s not in the hands of Boris. It’s all about swirling global risks – which are on a scale for which I believe there is no precedent, and where complacency is equally extreme.
I hope the UK is higher. But hope is not an investment strategy.
2. If you had one investment bit of advice for 2020 for our readers, what would it be?
Don’t try and second-guess markets on a 12-month view.
Where you are invested, have a high conviction on a 5-10-year view e.g. UK smaller companies. But balance this against a realistic view on global risks – do this by having a stop loss.
3. Which stock market will perform the strongest next year – and how best could investors access it?
Honestly. No high conviction on a 12-month view. But UK small caps have a decent chance of being up there (global risks allowing). Also, a Value strategy in emerging markets could pay off, plus Japanese smaller companies (which we’re just reviewing, as it was our Trade of the Decade from 2009)
4. What is the big personal finance resolution you will be making yourself on New Year’s Eve?
I would love it to be snappier, but here goes, with Henry Cooper in mind:
Make some small hits. (accumulate small profits)
Be ready to take some small hits too. (applying a stop loss)
Be ready to make a big hit. (on sharp falls, you gotta be brave and buy)
Keep your guard up!
Don’t get emotional or complacent.
Have a plan – stay focussed - apply it.
Not so much a snappy resolution. More a mantra to repeat every day. EVERY day.
P.S. There are no great Henry Cooper quotes I can share with you. He just did it. It's in the look.