A strong turnaround in November and month 41. Again sent the money to the account early. This month allocated to global small companies. It was a pretty easy decision as they’d been punished for the past two months straight. The chart was straight down, almost without breathing.
On twitter I’d also came across some research showing they (or more accurately the Russell 2000) was significantly undervalued compared to historic valuations. I say the Russell 2000, because US small caps area about 65% of global small companies, so it’s going to have a large influence on the performance of the index. I doubled checked and the sell off, which had knocked about 12% off the index had certainly made the valuations look a lot more favourable.
Little else to say this month. Until next month, stay disciplined!
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 looking for the best financial advisor in Canberra, then you should look for an adviser who will consider your goals and design the right portfolio to achieve them.
