How did your investments fare in 2013?
If you had a well-diversified portfolio comprising funds in Australia and overseas, you probably did fine in 2013.
The ASX was up nearly 15% and the Dow Jones nearly 27%, but along the way there were hiccups that needed our patience.
Like 2012, we saw a sharp mid-year dip, though this was erased by September.
Towards the end of 2013 we saw another dip. But this was nearly erased by a subsequent Santa Claus rally that started mid-December, so patience and discipline were eventually rewarded.
Investors (or gamblers) plonking their money into gold, or anything associated with gold, were one group who weren’t rewarded.
Gold tumbled nearly 30% over 2013 and the Who’s Who of ASX 200 stinkers in 2013 almost completely comprised Gold miners.
Silver Lake Resources being a notable casualty, losing 89% in 2013!
The winners of 2013 were a diverse bunch – a law firm, telecommunications, internet advertising, retail, financial management, education, entertainment and even one miner.
As I’ve said previously, there’s plenty of hot air around in December and January about what the hot sectors and hot companies will be for the year ahead, but as that list of winners proves, it could be anything.
And as the horror story of Gold and Gold mining company returns shows, it’s dangerous and stupid to load up on any one company, sector or commodity because there’s no protection in the event of the worst happening.
Although you still won’t be able to tell the gold bugs that.
They’re unabatedly talking up Gold’s decline as another buying opportunity for a bumper 2014.
Gold may well rebound in 2014, but none of us, least of all the gold bugs know that.
They were predicting 2013 would be the year of gold, and when it hit $1,800 in 2011 they told us the next next stop was at $5,000.
And that’s a track record that screams one thing – guessing.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543, www.mfg.com.au This information is general in nature and readers should seek professional advice specific to their circumstances. Looking to reach your goals with one of Australia’s highly rated financial advisors?
