The UK represents a scarily large proportion of that pie, given that I'm attempting to be well diversified. But appearances can be deceptive. I've rated shares like GlaxoSmithKline, British American Tobacco and Diageo as "UK shares" just because they are listed in London. But in fact the huge majority of their revenue comes from abroad. So even if the UK economy tanked, these companies would still do well.
I've attempted to come up with a more accurate picture by dividing up the UK shares according to the source of their revenue, and then allocating that to the other slices of the chart. The result looks much healthier:
Although this looks like I'm now rather overweight in UK bonds, that is no bad thing while I still have a mortgage denominated in sterling. It suggests a good home for my next investment is in Asia or Emerging Markets.
2 comments:
Apparently 2/3rds of FTSE earnings are derived overseas and exposed to weak currencies (Euro & USD).A portfolio would therefore appear to require a decent exposure to emerging markets. Most portfolios are having their UK content reduced and increasing cash (thereby increasing the emerging markets component)
Buying stocks is really a difficult decision to make. There is no exact science to ensure success. But i think it is with proper knowledge and right timing. and a little bit of luck.
Links i follow:
How To Invest Money
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