The General Election

Many of you have commented that I have largely avoided talking about the general election in recent weeks. This is because I have, myself, been conflicted.

To provide some history, I was a relatively big fan of the Cameron / Osborne government and supported the Conservatives up until the referendum in 2016. I am essentially an economic Conservative - much like those excluded from the party such as Phillip Hammond etc. Since then, I have been conflicted between parties; knowing selfishly that I should be voting Conservative, but being unable to sacrifice my love of the European Union.

Thus, in the run up to the election, I remained relatively quiet.

Yesterday I voted for the Liberal Democrats.

I put my country over myself.

Strangely however, this morning I feel strangely relieved. I was terrified of a Corbyn government almost as much as I was terrified of a no-deal exit from the European Union. Their manifesto was a wishy-washy load of spending and had no credibility. Having a force like him in Downing Street would have been a disaster for the fiscal credibility of the United Kingdom.




But mainly I feel liberated because this is the end of it now. There will not be another referendum. The withdrawal bill will pass before the 31st of January (probably). We are leaving the European Union.

This certainty has given me a lot more confidence in the UK moving forward, and whilst remaining in the EU is still the preferred option, it is no longer viable.


One of the many ironies in my voting decision was that I essentially voted to help the "Workington man" and they voted to harm themselves. However, following this result I have decided that from now on I will be voting for myself.


Another irony here is that the Brexit proposition has now become much more attractive. Prior to this massive majority, the PM was highly dependent on the support of the ERG - the hard-right anti-EU part of the Conservative party. This is no longer the case, and thus, they will likely be thrown under the Boris bus and we will probably see a closer partnership with the European Union.

The question has to be asked; why did Corbyn fare so badly?

And Corbynistas will blame the media, the Conservative lies, the lack of belief in Corbyn etc. But ultimately they elected a shoddy candidate who was never fit for the leadership.

It is clear too that despite his claim to not fight another election, he intends to cling to power for as long as possible. He should have been out of the door immediately.


Anyway, I remain conflicted, but this is a weight off the country's shoulders now. And a degree of certainty has been introduced to the UK economy again.

Despite it not being the outcome I wanted (which was ideally a hung parliament and a Corbyn-Swinson-Sturgeon etc. partnership) I feel oddly relieved.

Anyway, that's my two-cents on the issue.

Portfolio Review

It has been a while since I actually commented on the performance of my portfolio and updated the blog with my stock holdings.

My favourite stock of CVS Health remains a significant portion of my portfolio although I have trimmed the position as the price has been rising.

 The share has been booming on the back of realised synergies on the Aetna acquisition. Furthermore, earnings have been revised up repeatedly.

The position is up 42% on average - this is an average because I have purchased more and sold shares over the course of this position.








Next up is Royal Dutch Shell which has been a major holding in my portfolio due to the dividend yield.

However, the share price has not performed well and is down 14% since I opened the position.

The downward share price is interesting because oil prices have gradually been ticking upwards. Therefore, I think there could be a significant increase in share price after earnings beats.








Bristol Myers Squibb remains a key member of my portfolio and with strong earnings and a nice dividend it will remain there.

Shares are up 27% since I opened the position.















Next up is AT&T, I have trimmed the position recently as the share price has moved within the target range.

However, due to the sizeable dividend it remains a key part of the portfolio. Excluding dividends the position is up 20%.










The insurance industry makes up 25% of my portfolio and includes primarily Aviva and Legal and General.

Aviva trades roughly flat compared to the average buying price in the portfolio. However, with the 7% dividend the position is doing ok.

Legal and General is a 1/5 the size of my Aviva position and is up 6%.












I've trimmed my position in JP Morgan Chase lately as the price of the shares has increased significantly over the last year. The position is up 19% excluding dividends.

Sticking with banking, my position in Deutsche Bank has definitely been one of the under-peformers.

The position is down 16%.









Genworth Financial has recently dropped a little bit and the position is not up as much as it was 2 months ago.

However, the position remains up 10%.










The worst performer in the portfolio is Invesco shares are down 19% on the back of the Burford Capital issues and other concerns over Neil Woodford's former firm

That being said, the position is recovering slightly and is off its lows. I will continue to hold due to the dividend. 












The relatively new additions to my portfolio include Macy's as there is a fantastic dividend yield which looks relatively secure for now. Similarly, I have purchased Macy's options with a strike price at $22 a share for 6 months down the line. I appreciate this is a bet on a turnaround but there is a clear asset play now.

The value of their New York flagship store at Herald Square is worth more than the market cap in land value. Therefore, even if the company liquidated tomorrow there would be an upside of 25%.

The position is currently down 6% on average.




My most recent addition is Imperial Brand. I know the world is becoming more ethical in its mindedness and tobacco consumption is supposed to be reducing. But the fact of the matter is that cigarette earnings are continuing to rise.

There is also a well covered dividend with a forward dividend yield of around 16%.

The share is up 0.2% so far.