We all know that the worlds of aircraft engines, military matters and nuclear angles are always medium-term games. Whilst you can all guess why the shares of BAE Systems (BA.) are up over 40% year-to-date, if you are an Airbus shareholder in France you have only lost c.10% of your share price over the last seven months. Meanwhile as for the fine office of Rolls-Royce (RR.) - which for full disclosure I have talked positively about a number of time over the last year or two - the year-to-date decline in its share price is 35% after today’s first half numbers. So what should investors do now?
I know what many of you are thinking today: why don’t I hold 100% cash in my portfolio this morning? Or maybe 100% gold? Or have been super short the Russian markets. Hindsight Asset Management is always the best performer but - patently obviously - it does not exist and never will. And if you are smart you will realise - whether we are talking about markets or any other challenges - what matters is not what you might have (or probably have not) predicted, but how you react and see the future.