Where to invest your money in 2020? | bestbrokers.co.uk

Where to invest your money in 2020?

As the end of the year approaches, it is time (as every year!) to take stock of the current year and to look forward to the next. What to do with your current portfolio? Did it perform well in 2019? If not, why? What were the best investments and the best trades? Will we keep the same allocation, the same investments? Are we going to have to choose: sell investments or funds in order to buy others?

This is a companion discussion topic for the original entry at https://www.bestbrokers.co.uk/blog/2019/11/28/where-to-invest-your-money-in-2020/

Looking ahead to 2020 is still a bit of a juggle with numbers for investors as we have the fall-out from Brexit to, trade deals (even trade wars?) and the US election all impacting on market movements.

So, I’ve stuck to some well-known UK shares to bolster my portfolio as follows:

With RDSB it may seem like an odd inclusion as its share price has pretty much remained the same for the last 10 years - but it’s the low volatility that is the attraction for the long term investor as it will afford you a steady 6.5 to 7.0% yield with little or no stress. The only overriding consideration right now for Shell shares is what is the best price you can get them for.

Happy New Year!

What do I have up my sleeve for 202 investments? Caution and then again double dose of caution as will always be my watchword for serious investments.

Maybe, just maybe, 2020 is a year for investors to finally give a sigh relief? Across the Channel we have recently seen significant rises in French car sales whilst on the other side of the Atlantic a rise in US property sales – although with the latter there is a slight mirroring of the bubble prior to the 2008 crash.

Following on from this, and with a new UK government in place for five years offering some stability to the markets and allowing those who may have delayed investment to crack on, I’d be very surprised if we didn’t see the British property market start to rise too. Related businesses and trades are well worth a look!

Environmental and social concerns, surfing on the back of the ‘Greta effect’ couple with recent further tensions in the Gulf with resulting rising oil prices, we are likely to see a further erosion of the value of big oil companies and a rise in sustainable investment opportunities with increased taxation on carbon emission products – we should never under-estimate the consumer impact on this market sector.

Radically changing sectors, if we look at grocers, Ocado is still steaming ahead without any significant Amazon impact as befell other online markets. Whilst this should offer opportunities you should treat Tesco with care as they have a £2.5bn equal pay suit in the offing - a similar case is also looming for ASDA.

Despite all the other concerns for investors in 2019, the concerns about US-China trade wars and the aforementioned economic slowdown, 2019 was a robust year for many returns underlined by the FTSE 100 up by almost 12%. Gold rose over 15% in 2019 with alt coin Bitcoin rising up to just under 90% in the same time-frame.

Okay that has been a skimmed broad-view of some of the major sectors and offered an opinion of what to avoid or indulge - but where should you be putting your money?

After 31st January (Brexit day at last) and after the March budget I will be taking an even closer and harder look, with plenty of diligence of course, at established and new developing technology companies in the realm of AI, automation, cybersecurity and virtual reality – potential breakthroughs (with potential being the watchword and inherent risk) could see related stocks fly high; well worth closer scrutiny and my fingers are firmly crossed.

Looking back at my investment ‘picks’ for 2020 (pre-covid) almost a year ago, on 1st January, it is not the best of shows - obviously, with the benefit of hindsight, the stock spread if widened to include mining and electrical shares would have fared better – as a small consolation, at least my Ocado pick sits within the top 15 of the FTSE 350 price returns for the year.

Share 12 Month Price Change
Ocado +78.64%
Morgan Sindall Group -02.49%
Forterra plc -32.63%
Countryside Properties +00.04%
The Royal Dutch Shell ‘B’ -40.00%

Very glad that this wasn’t my real portfolio or else I really would be hanging my head in shame.

So how did your shares fare and what’s on your cards for 2021???