Winter is coming
Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
Access both platforms from your single Saxo account.
How I'm investing my ISA this tax year
Charles White-Thomson
CEO, Saxo Markets UK
Summary: The 2022/23 ISA season has kicked in, and what an excellent vehicle the ISA is to invest GBP 20,000 where all profits are tax free.
Given the Chancellor’s budget this year, it seems that tax free is an increasingly rare beast, so I plan to take full advantage of this year’s ISA allowance.
I have reviewed my investment notes from ISA 2021/2022 when my focus was around inflation, commodities with a focus on agriculture, softs and water, FTSE 100 mid 6000s, gold and general miners and a bit of volatility. In general, these were all good calls except for volatility which was just poor.
This year, the themes I’m focusing on are centered around uncertain geopolitical background, rampant inflation, the longer-term impact of Covid-19, the war in Ukraine and increasing interest rates. All this points to a defensive approach and dollar averaging or investing part of the GBP 20,000 each month, to avoid mistiming the market and top ticking.
My investments will include a big allocation to well managed and mature long short hedge funds. The shorts in their book should help cushion against markets in decline. If your portfolio is overweight Europe and the UK, pick a hedge fund with a European focus.
I will also continue with Commodities but this year I intend to focus on gold miners and gold. I like the defensive qualities of gold and at some point, gold should break out in the face of mounting inflation and uncertainty. To this I will add, a much-overlooked commodity – water. There are water ETFs which provide access to water companies with their defensive qualities and yield.
My overall strategy is to stay confident and if there is a large sell off, I will update my strategy to pick up heavily sold off global equities.
Latest Market Insights
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)