Indexing this year did not work (Updated)

Posted: December 15, 2015 in 2016, stock market, Uncategorized

Well by now you should know that, in this period, I am against indexing (both for 2015 and 2016).

My friends at Market Vectors saved me some research and it clarifies what I mean

The ASX performed +1.76% year to 30 Nov 2015.

The top 10 shares which represents over 60% of the ASX and are the core of 80% of the SMSF managed by institutionally aligned advisers and private individuals…performed dismally

Look at the price movement (dividend is not included)

CBA -5.04%

BHP -31.68%

WBC -0.57%

ANZ-13.4%

Telstra -8.04%

NAB -9.9%

WOW -20.18%

WES -6.59%

Scentre (Westfield spin off) +18.29%

WPL -18.94%

So it is better to take an active approach.

What is in store for 2016…let’s see

Major Banks….they have pretty much arrived to full valuation – between rising capital requiring and slowing of real estate you will be happy if they do not more

Mining – Iron Ore, apart monthly swings – will not do anything major. China is transforming into a consumer economy or slowing down. Anyway steel consumption will not increase, so there  is a cap there

Energy – this could be more positive once a low is settled in as Middle East is ripe for a major accident.

There are other bright spots but not enough to influence the index. So keep away from indexing.

 

 

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