Little Acorns is currently 24.5% up overall (including the bit I’ve kept in cash) and 29.9% on my holdings / income.
As per the chart above, in the same time, the S&P500 is up 5.79%, the FTSE100 is up 1.15% and the DJIA is up 3.94%. I guess the theory that you can’t pick individual stocks and beat the market is out the window.
Back to the property game
Old habits die hard and, as a former property investor, I can’t resist keeping one eye on the UK property market. And I’m glad I did.
In the wake of Brexit, following a plummeting pound and manic markets, I stumbled upon the ideal way to make a hassle-free 8.2% dividend on property investment – before any returns on market value. I say ‘stumble upon’, but actually the opportunity to get back into property landed in my inbox.
Scott Nursten, CEO of STRIDE, flagged Persimmon homes as a great target back on June 30th, shortly after Britain’s shock vote to leave the EU. I can’t pretend my heart didn’t skip a little faster at the prospect of dipping my big toe back into property investment so I took a look.
Top end property has definitely come down in price over the past couple of months and, while debate rages over what Brexit might mean for the UK long-term, the overall feeling is one of uncertainty. But, following Scott’s lead, I managed to buy at the right time as the markets fell and now, my Persimmon shares are already 39% up.
Performance through diversity
What really interests me is how diversification has worked for my portfolio. I’m currently holding investments in Africa, North America, Asia and Europe. These in turn are traded in 12 different currencies. What I’ve noticed is that it doesn’t seem to matter what happens in the currency markets – I have a natural hedge strategy built in. This is exactly as per the literature that I’ve read on the STRIDE site, but it’s amazing to see it working.
That is the breakdown of the currencies I’m in and how they’re performing. So, where my UK holdings have performed very well, the currency has been hammered a bit, but I’m still up. My Euro-based holdings are performing well and the Euro has pretty much held its ground since I started, so that’s worked well. My US holdings are a little down <5%, but the currency has performed well and this has balanced things out.
Given the Brexit uncertainty, I feel safe with this level of diversity. I can wrap my head around it and, so far, it has really worked to even out the bumps in the market.
Overall portfolio performance