On... 2019
The bad news is I am not able to beat the market in 2019 (ROI since Inception ASX200: +10.22%, Me: +7.51%). The good news is my return is positive this year, which is good because making money is more important than beating the market. For annual updates, see Portfolio Update.
The portfolio performance started strongly in 2019 and reached its peak at about 20% in July. Unfortunately, it went all the way down South from there. At the beginning of the year, the ASX was lifted by the RBA cutting interest rates (and the ASX200 index reached an all time high of 6834 in July). The escalation of the US-China trade war towards the second half of the year sparked the ASX200 sell off, and the market continued to be volatile with each tweet from President Trump.
The best performing stock (ROI since Inception) of the year was RHT (Resonance Health Ltd), +35.3%. Although, RHT being a microcap can have very volatile returns. The worst performing stock (ROI since Inception) was EXL (Elixinol Global Ltd), -49.8%. I bought this company after the medical cannabis sector was sold off, but apparently it was still not near enough to the bottom. I am hoping for the cannabis sector to rebound.
This concludes my second year of investing and I made some changes to my overall investing strategy. The biggest change was adding 'short term trading' into my process instead of just buy and hold. I also added an element of Trend Following to my buy/sell decisions. Have I learned anything this year? I think the biggest lesson is learning to follow my process (although the process is still being tweaked). I would say I'm about 80% compliant to my process and I hope to reach 90+% compliance in the future.
What about 2020? My crystal ball tells me it will be a flattish year for returns (in other words, I don't know whether the market will go up or down), up until the American election. No one knows what happens after that but a Democrat win (from the likes of Elizabeth Warren) might shake things up a little as her policy is quite anti business. The CHINA-US trade war will most likely continue to weigh on business sentiment.
What does this mean for my 2020 plans? At this point, I am 70% invested (30% cash), which is considered conservative and this is a level I'm comfortable with, until there is a reason that says otherwise. A big change in my strategy will be concentrating in microcaps. Microcap investing is considered a 'speculative space', but if you want to try something different, might as well try it early.
Note: I realized ROI is not a good comparison with the index. Why do it? Just for fun.
The portfolio performance started strongly in 2019 and reached its peak at about 20% in July. Unfortunately, it went all the way down South from there. At the beginning of the year, the ASX was lifted by the RBA cutting interest rates (and the ASX200 index reached an all time high of 6834 in July). The escalation of the US-China trade war towards the second half of the year sparked the ASX200 sell off, and the market continued to be volatile with each tweet from President Trump.
The best performing stock (ROI since Inception) of the year was RHT (Resonance Health Ltd), +35.3%. Although, RHT being a microcap can have very volatile returns. The worst performing stock (ROI since Inception) was EXL (Elixinol Global Ltd), -49.8%. I bought this company after the medical cannabis sector was sold off, but apparently it was still not near enough to the bottom. I am hoping for the cannabis sector to rebound.
This concludes my second year of investing and I made some changes to my overall investing strategy. The biggest change was adding 'short term trading' into my process instead of just buy and hold. I also added an element of Trend Following to my buy/sell decisions. Have I learned anything this year? I think the biggest lesson is learning to follow my process (although the process is still being tweaked). I would say I'm about 80% compliant to my process and I hope to reach 90+% compliance in the future.
What about 2020? My crystal ball tells me it will be a flattish year for returns (in other words, I don't know whether the market will go up or down), up until the American election. No one knows what happens after that but a Democrat win (from the likes of Elizabeth Warren) might shake things up a little as her policy is quite anti business. The CHINA-US trade war will most likely continue to weigh on business sentiment.
What does this mean for my 2020 plans? At this point, I am 70% invested (30% cash), which is considered conservative and this is a level I'm comfortable with, until there is a reason that says otherwise. A big change in my strategy will be concentrating in microcaps. Microcap investing is considered a 'speculative space', but if you want to try something different, might as well try it early.
Note: I realized ROI is not a good comparison with the index. Why do it? Just for fun.
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