Returns of selected markets over the last week and since 1st January. This week is sorted by the week. Sorted by the last year can be found at the end of this post.
A fractious start to July. The Federal Reserve clarified that June’s pause in its programme of increasing interest rates was just that, a pause. Additionally, on Thursday, a job report from ADP suggested the US economy was running hot, with 497,000 jobs added in June. The combination of these two events saw short Treasury yields move up. The US Treasury 2-, 5- and 10-year yields all moved higher (see charts below). On Friday, there was some conflicting news: the Federal report showed 209,000 jobs were added in June, the smallest monthly gain in two and a half years. That steadied equity markets after Thursday's falls.
In the UK, the two- and five-year gilt yields moved decisively higher as the market contemplated the Bank of England increasing rates to 6.0 per cent or higher. They are now at their highest yields since 2008.
As the table above clearly shows, it was a tough week for equity markets. Some good news is desperately needed on inflation!
The JIC Portfolio is down 11.3 per cent in 2023 v -0.9 per cent for the FTSE All-Share (TR) Index.
For the five years to 7th July 2023, it is up 43.3 per cent. Over the same period, the FTSE All-Share TR Index was up 13.0 per cent.
The AIM All-Share is down 9.9 per cent this year, the FTSE 250 is down 2.8 per cent, and FTSE Small Cap is down 1.8 per cent.
JIC Funds' Portfolio
The Funds’ Portfolio is down 6.0 per cent this year v +5.6 per cent for the FTSE All-World (GBP, TR) Index.
It is up 20.5 per cent since its inception in July 2020. Over the same period, the FTSE All-World GBP TR Index is up 31.8 per cent.
Big Movers over the last week
Positives: Bloomsbury Publishing was the best at +2.6 per cent.
Negatives: Sylvania Platinum -17.5 per cent, Polar Capital Holdings -8.9 per cent (but 6.5% was due to it going ex-dividend 32p on Thursday). IG Group Holdings -6.0 per cent.
New Three-Month/All-Time Highs last week
New Three-Month Lows
NextEnergy Solar Fund, RS Group, Howden Joinery, Sylvania Platinum, Smithson, Schroder UK Mid Cap, Temple Bar Investments and VT Argonaut Absolute Return Fund.
Trades and News
On Monday, ME Group made a small but important acquisition in Japan.
I added to my position in Sylvania Platinum in the JIC Portfolio.
Ex-dividends and Upcoming Events
Polar Capital Holdings went ex-dividend 32p per share on Thursday.
Based on last year, there could be updates from Sylvania Platinum and Niox next week. Me Group’s H1 results are on Wednesday, and on Thursday, Brooks Macdonald and RS Group post trading updates.
Next Thursday, Shoe Zone goes ex-dividend 2.5p per share and Schroder UK Mid Cap 5.5p.
Cash Holdings: 0.4 per cent in the JIC Portfolio and 0.2 per cent in the Funds' Portfolio.
31.4 per cent of the JIC Portfolio comprises six commodity holdings – up from 31.2 per cent last week.
RSI on FTSE All-Share is looking Oversold. Historically, it has been a good time to buy!