Quill in one hand; Moët in the other...
With a quill in one hand and a glass of Moët in the other, Wry & Dry pens this Christmas epistle with a mixture of nostalgia and optimism. And just a touch of cynicism.
It's been a shaky first six months of FY-16. In fact, somewhat underwhelming. Most of the share-market damage was done after the April peak. But still, since 30-Jun-15, the market has, after a bank-driven sell-off, moved within a channel. And is now down about 5.5% for this FY, to date.
And between the All Ordinaries Index of about 4950 and 5350 the market has vacillated like a teenager asking for his first date. And like a teenager's emotions after that first successful date, the market emotion has peaked and troughed with every nuance. That nuance might be relevant to the market (e.g. Australian business confidence), irrelevant to the Australian market (terrorist attack in Paris), or somewhere in between (Tony Abbott asking Peta Credlin to google Centrelink's address - just kidding).
This week's reaction to the US interest rate increase is a case-in-point. The market bounced one day and then fell by as much the next day.
So W&D is moved to ask: What really matters?
What really matters is what is in your portfolio. Your portfolio, if you are a First Samuel client, has been designed for you. The share-market hasn't.
So in assessing your portfolio's opportunity in the years ahead, there is no point in looking over someone else's shoulder. Look at what you own and assess its opportunity. .
And then toast with the Moët.