JPMorgan Natural Resources -48% down but still hanging on

A_Flock_Of_Sheep

bigadaj wrote: »

I don't want to be too harsh but your investing approach seems to follow whatever the latest book you've read is. Smarter investing now seems to be your bible, and even in there the attraction of some more exotic investments to adventurous investors is highlighted, particulalry looking at small percentages of small companies, Commodities or even gold.

You now seem to hold active as well as passive investments and the make up and allocation of even the passive element is an active decision making process.

I'm not sure if buying such commodity funds now would qualify as timing the market or an element of rebalancing, but there is no doubt that commodity shares offer fuller value now than for a good while. Wouldn't bet the house on it but they can add some spice and increase returns with consequent risk to the edges of many people's portfolios.

Not really. I've only read one book and that was Tim Hales. One which is frequently heralded, read and recommended on here.

Yes you are right I hold some active and passive together.

dunstonh

I've only read one book and that was Tim Hales. One which is frequently heralded, read and recommended on here.

There are many strategies and each has merits. Some strategies will have better periods than others. The thing to avoid is having no strategy and doing random buying/selling.

TCA

A_Flock_Of_Sheep wrote: »

Not really. I've only read one book and that was Tim Hales. One which is frequently heralded, read and recommended on here.

Yes you are right I hold some active and passive together.

This article might interest you:

http://www.telegraph.co.uk/finance/personalfinance/investing/funds/10528057/Why-were-tracker-funds-so-poor-in-2013.html

Chickereeeee

dunstonh wrote: »

The thing to avoid is having no strategy and doing random buying/selling.

Darn it....

ChesterDog

dunstonh wrote: »

The thing to avoid is having no strategy and doing random buying/selling.

That IS my strategy. :-)




Just kidding...

latecomer

I have it as part of my pension portfolio on the recommendation of the IFA the company uses - its gets a reasonable % of the regular monthly amounts but is around 3% of the total funds.

I'm working on the principle that when it does recover, the additional units that have been added on the way down will reduce the average price paid.

bigadaj

dunstonh wrote: »

There are many strategies and each has merits. Some strategies will have better periods than others. The thing to avoid is having no strategy and doing random buying/selling.

Well according to monkey with a pin, then the random strategy can work well.

A_Flock_Of_Sheep

bigadaj wrote: »

Well according to monkey with a pin, then the random strategy can work well.

Is that the latest book you are following then?

blinko

if you believe it will go up you should buy more, if you believe it will go down you should sell

BUT certainly in the short term there is a lot of pain for commodities. QE will punish gold. Shale will murder oil....

I may buy in to this fund but will probably wait 6 months until QE is really biting hard on the USD

grey_gym_sock

bigadaj wrote: »

Well according to monkey with a pin, then the random strategy can work well.

yes, but there's a danger that "random" buying and selling isn't so random at all, but is actually emotionally driven, chasing recent winners, and selling recent fallers, which tends to give worse results than trading less frequently.