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.
investorpolitico 