So where do you put your money to try and make a return this year so far?
— The choices are quite limited in my opinion.
As of writing volatility is amongst us with most markets entering bear phases. A quick ranking on morningstar.com and you’ll see some of the best and worst performers so far.
Biotech, Italy, Japan and China were the worst performers for the year (Fig. 1). We switched out of Fidelity’s Italy on July 16th, 2015, and indicated the start of the bear market for Europe last summer. Fidelity’s China Focus holding was also switched out on Sept 1, 2015. Both were good moves to safety.
Sector – Equity – Previous Metals and emerging markets are the best performers this year so far (Fig. 2). We began switching into Investec GSF Global Gold A-Inc in Jan 2016 as well as using BlackRock World Gold A2 for regular savings plans (Portfolio Beta). In comparing the two (Fig. 3), Investec is outperforming BlackRock for the moment and the sector is offering nice hedge to the volatile markets for growth. Of mention is also the consolidation of ABX – Barrick Gold (Fig. 4), and also a breakout in Silver by PAAS – Pan American Silver.
Fig. 1 – Worst Performers by Category 2016-04-08 (Source: hk.morningstar.com)
Fig. 2 – Best Performers by Category 2016-04-08 (Source: hk.morningstar.com)
Fig. 3 – Gold Performers YTD 2016-04-08 (Source: hk.morningstar.com)
Fig. 4 – ABX Barrick Gold Price 2016-04-08 (Source: Stockcharts.com)
Fig. 5 – PAAS Pan American Silver Price 2016-04-08 (Source: Stockcharts.com)
Best,
Michael
