Monthly from the Shares and Stock Markets Portfolio beat the FTSE 100 but not the S&P 500 or the Dow Jones Industrial Average:
- SASM Portfolio: 1.46%
- FTSE 100: 1.26%
- S&P 500: 6.63%
- Dow Jones: 7.07%
Considering the losses suffered by the S&P and The Dow in the previous months and the (unfounded) bullishness emanating from mainstream media a rebound was always on the cards.
Here is a chart showing the cumulative gains and losses for the Shares and Stock Markets Portfolio and benchmark indices since inception (January 2016):
Overall I’m happy with the progress that the Shares and Stock Markets Portfolio is making but I’ve recognized some areas that need improvement (isn’t there always?).
Goings On In March
March was hectic with birthdays celebrations and general family mayhem
We all enjoyed ourselves and celebrated my 40th jointly with my daughter’s 1st birthday which was a great time for friends and family to gather, eat cake and catch up.
On the portfolio front two things were apparent:
- The purchase of physical precious metals was again responsible for this month’s value growth
- Revenue for the private business has flat lined and needs urgent attention if it is to realise it’s full potential
To this end I would like April’s report to contain an update on increased revenue (more paying clients) which will be a priority for the portfolio moving forward.
Stock just do not feature in the portfolio due to the precarious nature of valuations at present – even though we’ve seen declines recently stocks generally remain overvalued.
Today’s Shiller PE10 for the S&P 500 sitting pretty at 22.59 pic.twitter.com/65xmK4xvBT
— David Thomas (@djthomas) April 9, 2016
I’m happy to continue building tangible asset value in the form of precious metals and a small private business until such time that stocks either on a group basis or individually represent a sensible investment.
— David Thomas (@djthomas) 6 April 2016
Speaking of sensible investments I received an email from NS&I this month informing me that their interest rate will be reducing from a lofty 1.25% to 1% in June – this needs to be addressed since 1% is frankly an insult.
Plans For April
Here is a list of things I will be concentrating on this April to increase tangible asset value for The Shares and Stock Markets Porfolio:
- Marketing the private business to achieve at least one more new client
- Using the cash from the NS&I income bonds to start a second private business (more details in April)
- Organising the logistics of the second private business both from an accounting and legal perspective
One thing I’ve noticed about the private business is that there’s a limit to revenue growth over the medium term before it will require greater management.
My target is to get to that point and then decide where I want to take it next.
Another thing I’ve noticed is the demand for it’s services is high especially at certain points throughout the year.
A regular marketing campaign should be able to tap into this seasonality.
That’s it for this month’s portfolio value report and don’t forget to sign up to below by email to get notified of the next report – there are also two free investing ebooks for you to enjoy when you sign up.