My investment returns in October – the market’s yo-yo spins upwards

October was a very positive month for equity returns.  I’ve just updated my portfolio returns page, and my invested portfolio rose in value by 4.0%.  This doesn’t recover the losses of the last two months, but it certainly retrieves some of the portfolio’s poise: my 12 month return stands at +6.7%.

The coloured grid below shows the relative performance by sector for each of the last few months.  You can see the equity markets are pretty correlated, but highly volatile; by contrast Fixed Income (and cash, obviously) are much more steady-as-she-goes.

2015 10 Returns by asset type

The standout figures last month were equity returns in the USA and Europe, each up around 10%.  By contrast the UK and Australia were up about 4% each.  August saw similar moves, but down not up; September saw most markets continue to fall while the USA stabilised; the USA now tops the tree. Overall the market weighted by my exposure rose about 5.6%, which I lagged – disappointingly.

My overall performance masks a number of sudden movements within my portfolio.  Google, AmazonMcDonalds and N Brown Group all had excellent months.  Pearson had a terrible month.  That’s equity investing for you.

I took the opportunity to close out my BWNG position and rebalance a bit out of UK Equities, which I am overweight in.  I am not fully invested right now; I’m keeping some cash close at hand in case the market dips back down again.

3 thoughts on “My investment returns in October – the market’s yo-yo spins upwards”

    1. Adnan – my portfolio composition is roughly speaking the target allocation I explain in my Investment Philosophy –

      You are right that holding cash/currency, in current low interest rate, has almost no logic to it. My target allocation of these is very low, and my actual allocation is even lower. Arguably I shouldn’t even show them in the investment returns grid, but they serve as a quite a nice ‘baseline’ (i.e. small positive return).


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