What We Are Doing in Regards to Your Portfolio.

By Jason Fittler

1. This is not a time to panic.  Selling out your portfolio at this time is not recommended. At this point we recommend you hold your position. The best place to recoup the current loss is in the market.

2. At present we are tracking the market to see when it might form a bottom.  To do this we are looking for buying strength to hold the market up. Once we have determined that the 21/01/2008 was the bottom we will look to start buying into clients portfolios that are holding some cash as to take advantage of the undervalued market.

3. The sectors which we are looking to buy in are the blue chips stocks in the banking, resources, food and insurance sector. We are looking for undervalued stocks which have strong revenue streams and pay high dividends.

4.  We expect to see a volatile market over the coming months both in February and March as companies here and in the US report earnings. As such we expect it to take around 8 months for the market to get back to fair value around 6350.

5. In these markets we are advising to maintain a low level of borrowings.  Most clients are geared at less than 50%, at these levels you won’t be subject to a margin call and therefore forced selling. We do not recommend increasing your gearing above this level at present. However if you do have spare funds which you were looking to invest into the market now is a good time to get the funds in as the market is looking cheap.