Good morning, it's Paul here.

I've got a clear diary this week, so will be able to focus entirely on the SCVRs, after last week's rather poor coverage - my apologies for that.

Political chaos continues. It seems that Mrs May's bizarre plans for EU withdrawal in name only, are finally unravelling. What surprises me so much, is why she was given free rein for 2 years, to pursue a negotiation strategy that seems to please nobody! I read the "Chequers" white paper, and it's total nonsense, from start to finish. Perhaps it's been a deliberate strategy, to sabotage Brexit?

Anyway, all that matters for the purposes of these reports, is to what extent all this chaos has been baked into share prices already? Normally when news is widely known, then the market discounts this into valuations.

As previously mentioned here, I pruned my portfolio back over the summer, to leave just my large, high conviction holdings (which you can see here in BMUS). I'll hold these through any future volatility. Unless something goes wrong with the company fundamentals of course. All the political stuff will get sorted out, one way or another, it always does.

In the meantime I'm noticing a buyer's strike in many small caps that I follow. That's understandable really. After all, why buy now, with so much uncertainty around? There has to be a compelling reason and/or attractive valuation, to make me buy anything at the moment. One benefit of this, is that I've noticed the market is almost overlooking some good results statements. There could therefore be pent-up demand in those stocks, which could rise strongly when political problems get resolved. So I am searching for buying opportunities at the moment. If some investors/punters are panic or forced sellers, plus inaction after good announcements, this can all produce buying opportunities, selectively.

Anything that is rising in current market conditions, is worth looking at. If investors are prepared to buy now, then this suggests to me something good is probably going on at the company concerned.

Market timing - I don't try to time the ups & downs of any stocks in my portfolio. It's not possible to move in & out of small caps in any significant size, so market timing is impossible, unless your position sizes are very small. Plus, the spread is ridiculously wide in many small caps, when…

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