Back in the middle of May, I published an article here that implied I would be holding firm on my existing holdings and averaging down as the Brexit vote approached IF I could see appropriate value, especially among the dividend paying shares. Following that article and as the Leave campaign began to gather momentum, I took an alternative view that amidst the uncertainty “cash is king”. I posted details of that decision and the resultant portfolio holdings/weightings on Stockopedia (and promoted that post via my Twitter feed).
Today, the momentum is back with the Remain campaign following the terrible events of last week, the pause in campaigning over the weekend and last night’s performance by the PM on Question Time (personally, I gave him an 8/10 even though he lacked clarity around the immigration questions). Moreover, the FTSE 100 is up around 200 points today and many of the holdings I converted into cash (even though I maintained nominal holdings in most of them and the “real money ISA portfolio” is intact) a week or two ago have bounced accordingly. While it looks like I might have been premature in my decision making, I am still comfortable being around 58% in cash right now.
While the Brexit vote is not certain until the results are in, there were a couple of other factors behind my decision. I will be travelling extensively throughout July and August and in September we will be moving house. Amidst that disruption, I will not be able to keep as close an eye on my holdings as I would wish should I remain fully invested. Most likely I will drip feed money back into equity holdings over the next few months while also keeping a close eye on the US election which promises to be another period of uncertainty for markets and decisions for investors.
Never a dull moment in this investment game.