A late one to round out month 30 and 2022. Sent the contribution early, 1x as standard, invested into global value and was punished for it as a lot of things sold off during December. My response? Meh. I ran a dollar cost vs lump sum or wade vs plunge experiment over 30 years for our book, and you’re looking at 60%+ chance that you’ll get a positive month vs the chance of negative.
These things you need to accept up front and move on. It’s the importance of having a set of rules or philosophy before you start. If you know it’s likely you will have negative months and they can’t be avoided. Knowing this, you can just forget about it and keep up the regimented behaviour that gets you to your destination.
Here’s how things stand according to the boggleheads spreadsheet.
Global value and Australian high yield both held up. Global value was up 1.34% and Australian high yield was up 8.6%. Global large and small both stunk, down about 12.5% each. Emerging markets down nearly 13%. Australian REITs down about 20%, although I didn’t buy those until they’d fallen about 25%, so I wasn’t hit there.
Until next month.
Disclaimer: The discipline project is a personal endeavour and should not be constituted as a financial strategy that anyone should follow. It is more a study in repetition and shutting out the noise in pursuing a financial goal, than any focus on portfolio construction. Anyone looking to build a portfolio should seek financial advice to find out which strategy is right for them, if you are seeking financial advice then you should consider one of Australia’s best financial advisors who may be able to help you identify your goals and put in place a reliable strategy to pursue them.
