September, 2012 | Financial Foot In Mouth

Leger Up The Garden Path?

There are lots of macro-economic and technical market reasons why you should sell. The “St. Leger” method worked superbly over the last two years and we expect the same again.

Quote by: Brian Dennehy (Managing Director of Dennehy Weller)
Quote made on: 30/04/2012
Quote Submitted by: Michael Hack
Source: Trustnet

Editor's Notes

Back at the end of April this year, Brian Dennehy , the managing director of Dennehy Weller, a leading IFA which has the ear of many a quality newspaper, held court with his market views.

According to this organisation, there was an element of déjà-vu about market conditions at that time, supporting the compelling technical reasons to ditch your equity holdings and head for the hills.

For those of us who are not au fait with the St Leger method (steady now), this involves selling out of risk exposure on 1 May and buying it back on the second Saturday of September – apparently this according to Trustnet, “…could work even more effectively in 2012 than it did over the last two years”. You see, markets fall much harder in the summer if there are setbacks, since stocks tend to be on higher price-to–earnings ratios following a strong run in the first quarter.

This sound brilliant – where do I sign?

For those who are interested, the FTSE 100 stood at 5777.11 at the end of April and, by the second Saturday of September had plummeted to an increase of 1.45%, while the IMA UK Equity Income sector made a gain of 4.33%.

Aye well – let`s hope that Dennehy Weller clients didn`t miss out on too may dividend payments when they were out of the market.

Comment/Submission By Mike Harriss, Wed. 17 October 2012

Quote by:	Brian Dennehy
Source:	Daily Telegraph
Quote made on:	MARCH 1ST 2012
The Quote:	Brian Dennehy of independent financial advisers (IFAs) Dennehy Weller commented: Yet again the ˜safe haven” myth of gold has exploded. It went down during intraday trading by about $100. This doesn`t mean the bull market has ended. It just means that when you buy gold you must do so with your eyes open; it is a highly volatile fringe asset. Our technical analysis suggests one of two possibilities. That the bull run is over and the price will eventually work its way down into the $700 to $1,000 range or one final high lies just ahead before that large correction towards $1,000 will begin.”
Submitted By:	Mike Harriss
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