Portfolio down YTD 7.1 percent as small caps languish

Although the STI has recovered to levels close to the start of the year, my portfolio is still down 7.1% due mainly to the sharp fall in the price of Etika International. That is still close to a 5 percentage points improvement over last month. Biosensors International has shined, breaking past the $1.30 mark. That we despite the dilution caused by the placement in shares. It seems that the big boys behind the scenes are optimistic of its prospects.

Although the spotlight here is the General Elections, the events that will determine the stock market direction will be the US and a slight extent Europe. Ben Bernanke has signaled that the stimulation of the economy (stock market rather) will end on schedule as promised. In Europe, the fears of the PIIGS have returned, as the impasse over how to bail the afflicted out remains. In my opinion, there will be little breakthrough in the month of May. Incidentally, it is the same month where most dividends are paid out.