It is an interesting time and I think that markets could go...

It is an interesting time and I think that markets
could go either way. After holding through the
GFC , because I listened to “ the experts “ that
tell you to stay in the market no matter what I
have taken a bit more of a trading approach.

I have also been sceptical of how high some
assets have gone due to the low interest rates
we had and I still don’t think some of the
interest rate rises have washed through the
REIT sector.
As much as I rely on the manager’s skill to make
me money, I still think an investor needs to look
inside an LIC and make a determination on
whether the portfolio holdings in general are
overvalued, neutral, or at a discounted price.

Of late if I find value in an LIC, ie the LIC is
trading at a discount and the holdings are good
value in my opinion, I will buy in. If the LIC and
holdings move in a forward direction and become
what I consider more on the expensive side I
will sell out.
I don’t always get it right but on occasions where
there is a capital gain that has outperformed a
hurdle that I’ve set , I’m happy to sell that asset
and sit in cash or less risky assets until value
appears again.
With the variety of different LICs, LITs and ETF
products on offer, it is a whole lot easier to invest
in different asset classes and there are much
improved options other than cash when not
invested in equities.

I’m still not convinced that interest rates will move
down much unless there is a recession and I still
see risks in interest rates moving higher.

I have dialled back the risk a bit and have
invested in some different asset classes that
are a bit more defensive and have taken a bit of
an each way bet on interest rates the way I’m
positioned.
I have enjoyed the volatility as it allows more
trading opportunities but I wonder whether the
market might adjust violently at some point.

Investing can be challenging but it’s always an
interesting pursuit. I spend a lot of time trying
to find interviews of money managers these
days as I find it increasingly important that a
manager’s philosophy aligns with my own.

Good luck and take care .