We could have done nothing
The FTSE 100 stood at 6,833.46 points 12 months ago and closed on 6th April this year at only 6,091.23 points. Which is 10.86% down over 12 months. Generally all global markets followed suit, ending lower to some extent. Being an entirely passive investor would dictate we simply rebalanced between our existing funds and left as is. Keep to strategy. By taking the rough with the smooth we eventually achieve the same return as the market generally, which is enough to beat 97% of active fund managers over most 5 year periods. However we overlay our strategy with tactics. So how much have we lost this year?
Has 12 months brain power, crystal ball gazing, general worry and gnashing of teeth had any effect? Well obviously it did otherwise we wouldn’t be drawing your attention to it today!