Portfolio update - the engines are starting to chug!
The markets around the world have recovered strongly from the low point in early April. The global market is now only down 4.8% for this year and I can imagine that a few good weeks could sort that out.
Why does it feel so different in the UK? Well the UK markets haven’t pulled back at the same pace and still sit just short of 20% down. You are all invested globally so there is a difference between what we experience in the news and what your portfolio is doing.
For example, when you look at table 1 the standard 100 portfolio is down around 14% over the year and the sustainable 100 portfolio around 9%. These are still bigger falls than the global market, which is largely due to the smaller companies and commercial property.
The other difference is that very few of our clients are invested 100% in the stock market. The average risk level across all Goodmans clients is spookily around 50%, with the more adventurous clients balanced by the more cautious.
At this level of risk, the falls this year are 6.9% for the standard portfolio and 4.2% for the sustainable portfolio. When you look at table 2, you can see how your reality is different from the news.
It does feel like the markets are sensing some normality ahead. There will undoubtedly be some damage to sort out, but also some green shoots and new directions for business.
The engines of the economy are starting to chug. Well at least the garden centres are open!
We did mention lawnmowers last time!