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Those of you that have been following my posts on the forum will be aware of the steps I’m taking to set up a long term investment strategy. Having been inspired to take matters in to my own hands through my work on The Armchair Trader this year – my aim is to grow my existing investments to ensure a prosperous future. I’ll be posting my real-life investments and thoughts here which, I hope, will give you the confidence you need to do the same.

After all, if I can do it, so can you.

Now, my target is pretty aggressive. I’m aiming for 15% portfolio growth each year. However, some years, I’ll be over, and some, I’ll be under. But the target is there to help me focus on my goal of building a £1million pot for my retirement – in 20 years time – from a current pot of £100k.

I’ll be posting articles, making observations on the markets and how they have affected my investments each month.

Which leads me nicely in to January.

An eventful month for the markets as it turned out – one that I can summarise with just a single word – Trump.

Having enjoyed a buoyant first half, where profits were up by 3.5% in the first two weeks of January, (broadly based on a lack of significant news that might affect the financial markets), Trump’s inauguration speech sent shivers down the spine of investors and traders across the world. With everyone diving for cover, the value of the US Dollar has dropped, and long-term US relationships with trade partners are in disarray.

What has this meant for investors?

Well, Emerging Markets have been hit hard. With Trump’s strategy to increase manufacture in the US, many emerging markets fear they may lose out. The drop in value of US Dollar is also likely to be a key factor.

US and UK equities have generally fared well with record highs posted on the Dow Jones and FTSE indexes leading the way – although these historical levels were tempered towards the end of the month.

Gold, which is generally seen as a safe haven in times of uncertainty was hampered in the second half of the month, notably at the time of Trump’s Presidential speech. Economists attributed the drop in value to the initial strength of the US Dollar, which subsequently dropped as new US policies became clearer. This offered Gold an opportunity for a late January rally.

What did all of that mean for my investments you may ask?

Well, from the excitement of a charge in the early weeks of the new year, volatility has provided the sobriety I need at this early stage to temper rising expectations. In short, January finished up 1%.

What’s in store for February?

I suspect there will be more mayhem from Trump – so expect some mutterings from me on the forum. There’s plenty in store for Brexit too so it won’t be plain sailing. However, I know that by actively managing my investments – I’m ultimately in control – and that makes it much more interesting.

Feel free to join me on my journey. If you have any ideas or comments relating to my long term investment strategy, then please post them either in the comments section at the bottom of the page, or on The Armchair Trader Forum.

I’ll look forward to hearing from you.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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