Compared to a very bland 2018 investment focus, my choices for 2019 are pretty 'out there'!
Investment focus for 2019
After a pretty crazy 2018, I feel refreshed and ready to start 2019. There’s a lot of housekeeping to be done: last year, I opened an account with Interactive Brokers in addition to my existing Schwab account. While this saves on fees and expanded my investment options, it came with a downside: I no longer have a single view of my investments. I don’t even know what my true gain or loss for the year was as I need some work to aggregate data from multiple sources and work out how much cash was moved around. So the first task will be to make a full review of the status quo and put in place a system to monitor everything.
The second element is to regain focus and discipline. My overall picks for 2018 were good, I just needed to be more disciplined in execution and also patient in waiting for the right entry price.
For 2019, I already have my main areas of investment outlined. In fact, I already started small positions in these areas during 2018. Compared to 2018, where my focus was on US stocks and AMD in particular, 2019 is pretty ‘out there’! My 2019 focus areas are:
The first is the most speculative. Post-Fukushima, an already beaten down Uranium price has tanked, there’s a glut of Uranium inventory and the spot price is already below replacement cost leading major Uranium miners to scale back operations. Then why invest? I’m a believer in nuclear energy as an important source of energy for the future, one that provides proven capacity while being clean. The existing inventory will take a while to work through, but eventually the price should recover.
Unfortunately, I’ve built-up only 10% of my target position so far, but there’s already been a double digit increase in price since my initial investment. Hopefully, there is an additional opportunity to buy at better prices.
In 2018, I pared down my holdings in oil companies, eliminating Total and paring back my BP holdings (mainly to hold in line with my desired position size and then later to make available funds for other investments).
If opportunities arise to buy into the oil majors, I will do so, otherwise, I may turn my attention to the battered down oil service companies.
Prior to my small initial investment in 2018, I had no investments in emerging markets and was invested mainly in US stocks. In 2019, I plan to invest steadily to built up a position representing 3% of my stock portfolio. Due to the difficulty in investing in the emerging markets, I will not buy individual stocks, but instead invest through a fund.
UK and Brexit
UK news has been dominated by Brexit. The British pound and UK stocks have taken a beating due to political uncertainty and future economic risks. While the risks are real, in my view, the UK is oversold and there are opportunities to find good companies at reasonable prices.
I have other ideas too, but the four above are what I want to focus on. What are your 2019 investment plans?