Another month and another one with volatility. The Optarix US Portfolio gained 5.19% in the twelve months ending 30 November 2018. Since the S&P 500 gained 4.25% in the same time frame, this means that our portfolio achieved an active return of +0.94%.
We are quite pleased with this result. It’s not as good as
compared to the other benchmark we use, the S&P 500 Dividend Aristocrats (stock
symbol SPDAUDP). This latter index gained 5.27% in the past 12 months. Therefore,
our portfolio lost slightly with a performance of -0.08%.
Overall there seems to be a downward trend, i.e. the active
returns decreasing. While we enjoyed the higher active returns in the past, we
are equally aware that it’s hard to beat an index in the long run. The best you
can hope for is to be approximately in the vicinity of the index’s performance.
With the trade conflicts, the looking budget crisis in the
US, the uncertainty about further interest hikes of the Federal Reserve, we
believe that volatility in the market stays high and there is a possibility
that the long bull market comes to a halt.
Happy investing!
