2017 in review
2017 was a big year for me outside the markets. I experienced some personal struggles and some family struggles that really put a lot of things in perspective. I moved house too – an expensive situation – which negatively affected my ability to reach some of my financial goals in 2017.
Even though it wasn’t as successful as I would have liked, its important to review and outline some plans for the next financial year.
My performance since August 16 (since I started tracking it using Sharesight) is shown below.
Not ideal to say the least, but its not the first time I’ve underperformed the broader market, and it won’t be the last time. More than half of the return was comprised of dividends, which is relatively consistent with what I’ve experienced in the past.
The largest detractor by far was a holding in APN Outdoor. Share price wise it has not helped my portfolio, but the business appears to be performing reasonably well.
My personal opinion is that markets appear a bit frothy. There are very few compelling sectors offering reasonable growth and valuations. Those sectors that do offer reasonable growth are trading at historically high valuations.
Market yields appear reasonable – this is primarily a function of the banking sector trading at reasonable valuations currently.
A favourite chart:
The end of the financial year also sees an update to one of my all time favourite graphics. This particular one was produced by Morningstar, and a brief look should be all a reader needs to convince them of the need to diversify,