Sunday, 25 April 2010

Gold Priced in US Dollars (USD) – April 2010 Update

Within my Retirement Investing Strategy I currently hold 4.1% (up from 3.5% at the last USD gold update) of my portfolio in gold with a targeted holding of 5%. Gold is the only portion of my portfolio that does not provide a yield (dividends, interest etc).

Saturday, 24 April 2010

Minimising investment portfolio ‘fees and taxes’ not ‘fees or taxes’

One of the principles I followed when I first constructed (and in the ongoing maintenance of) my retirement investing low charge portfolio was to minimise fees and taxes. I do this as fees and taxes have a big effect on your final portfolio when investing over many years due to the compound interest effect as I demonstrated here.

Thursday, 22 April 2010

Are we heading towards a series of sovereign crises around the world?

It appears to me as though governments around the world have just about maxed out their credit cards as they continue running massive fiscal deficits. I’m starting to wonder if we might not see one or two sovereign debt crises in the near future. This is just some of the highlights from the news that I have seen today (not even this week but today).

Buying Gold

Gold priced in US Dollars (USD) and gold priced in British Pounds (GBP) remains above its historical real (after inflation) trend line price and above its historical real historical average price. It is however still below its historic real highs priced in either of these currencies. I’ll try and get monthly updates up for gold in both currencies in the next few days however today I’d like to report a buy/sell decision that I have made. I try and report every one of these (but I’m sure I’ll forget to do this occasionally) so that you can track what I’m up to.

Wednesday, 21 April 2010

Australian (ASX 200) stock market including the cyclically adjusted price earnings ratio (PE10 or CAPE) – April 2010 Update

To try and squeeze some more performance out of a retirement investing strategy that is heavily focused on asset allocation I am using a cyclically adjusted PE ratio (known as the PE10 or CAPE) for the ASX 200 to attempt to value the Australian Stock Market. The method used is based on that developed by Yale Professor Robert Shiller for the S&P 500. I will call it the ASX 200 PE10 and it is the ratio of Real (ie after inflation) Monthly Prices and the 10 Year Real (ie after inflation) Average Earnings. For my Australian Equities I will use a nominal ASX 200 PE10 value of 16 to equate to when I hold 21% Australian Equities. On a linear scale I will target 30% less stocks when the ASX 200 PE10 = 26 and will own 30% more stocks when the ASX 200 PE10 = 6.