↑ Emerging Markets Stock Index Fund is up by
2.6 % or +$3,318
↑US 500 Stock Index Fund is up by 1.4% or $1,574
↑ Global Small Cap Index is up by 0.8% or $873
↑EUR is up to USD by 2% or $4,243 for my
portfolio.
Grand
total additions: $10,073
Observations:
- There
is a strong competition for the investors money between S&P500 and Emerging
markets. These and companies with small
capitalization ($300 million to $2 billion).
-
Western Europe although becoming more assertive, with EUR exchange rate to USD
is up by 13% this year, still far away
from its previous glorious days. Perhaps with the UK out of single market and
eastern Europeans countries kept at bay there is brighter future for the main
drivers next year (Germany, France, Italy).
Fun
fact: The authors of “The Rate of Return
on Everything, 1870-2015” show that that rich people holding assets tend to
get richer faster than the economy grows, fuelling inequality. From a (very)
long-term perspective equities and housing have produced similar returns since
1870, averaging out at about 7 per cent per annum across 16 countries. Equity
markets around the world have become tightly interlinked with each other:
country co-movements rose from 0.4 in the middle of the previous century to 0.8
this decade.
But
if the past 145 years are any guide to the future, it can be a dangerous
mistake to assume that “safe” assets will always be boring in the long term,
let alone a reliable hedge against individual country risk. Investors forget
that at their peril.
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