Time To Reflect On 2015
As we approach the year end we always review performance, and unfortunately the Australian share market only 2 weeks ago was around 2 1/2 year lows and is likely to finish in the negative which is the first time since 2011. The China slow down, the huge fall in commodity prices and the cutting of Interest rates to record lows have had our market flat and economy recording only subdued growth.
The result – increased volatility and for many investors we are seeing superannuation balances bouncing around a lot more than usual. .Unfortunately this is a trend of things to come. Current data suggests that the average balance fund return will between 2%-4% for the year.
There’s no denying the facts: it’s been a pretty bland calendar year for most local investors.
From the banks and miners to Woolworths Limited (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS), many of Australia’s blue chip companies have delivered nothing but grief in 2015. However as advisers and investors you need to remember that you cannot pay too much attention to short-term volatility.
, what is the market so worried about right now?
Well, first on the agenda seems to be what Janet Yellen and her fellow U.S. Federal Reserve officials decide about the future of interest rates in the world’s biggest economy.
By my calculations, it’ll take you maybe 10 minutes per month.
1) Find the best businesses that are making cash profits
2) Buy them at a good price or upon weakness
3) Own them for a long time.
4) Add more money regularly to your portfolio
5) Don’t panic when the market gets volatile.
6) If your looking for income sit back and collect the dividends, often of the fully franked variety.