My investment returns in October – the market’s yo-yo spins upwardsPosted: 2015-11-02
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.
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, Amazon, McDonalds 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.