Winning Investments

Alan Steel says, "We still believe this is a time to be committed to equities - hang on in there."

We thought it was a good idea to send this issue out early for a few reasons. March is some month in the investment calendar. If you haven't invested your ISA for this tax year there's not much time left. And for those who fancy a bit of an extra flutter (Venture Capital Trusts) you might like the idea of 40% tax relief whatever rate of tax you pay, and tax free income and capital gains for life. There's even a VCT that gets you access to the potentially explosive Chinese economy. Please ask us for specific recommendations, but do it soon.

We also wanted to share with you the fabulous news from top research house Ned Davis Research in the US. It's long been their philosophy that major moves in markets tend to be global in scope. So it follows global breadth can tell us something about the US stockmarket especially since many of the top 1,500 US companies are multi-national.

Their recent research looks at the percentage of 42 individual country indices above their 10 week moving average. Right now the number is 97.6%. Historically a reading above 74 has been consistent with a 26.5% gain per annum on a stockmarket composite covering 1,500 US companies.

Reading the newspapers you'd hardly think there was any scope for growth in the US market but history shows that good breadth amongst the 41 other countries outside the US is bullish. Another Ned Davis indicator called the tape (momentum) is also very healthy, 84% bullish. So surprises are going to continue to be nice ones.

One final nice surprise for March is that at the Money Marketing UK Financial Services Awards at the Grosvenor House Hotel in London on Wednesday night we were awarded the Investment IFA of the Year Award 2005. The judges apparently were impressed by our detailed research, passion and commitment to clients.

We still believe this is a time to be committed to equities - hang on in there.


Alan Steel
Alan Steel Asset Management Ltd is authorised and regulated by the Financial Conduct Authority

The Financial Conduct Authority does not regulate tax advice

This article is the personal view of Alan Steel. Please check the appropriateness to your individual position with your adviser before taking or refraining from any action.