Equities Investment 2020 - How did you cope ?

[Jon39]

Every year I measure my own investment performance from 1st January to 31st December. This simplifies comparisons to other years and also to the market average performance.

Last January with the usual new year anticipation, the Fund, Market Index and Dividend Income all started afresh at 0.00% increase. Eager anticipation yes, but in reality never knowing what is going to happen. During the first few weeks I was pleased to be moving ahead of the average market performance, but then we began to hear about a far away virus. In February some increased dividends were being announced, so that started the income line moving upwards.

The virus arrived in the UK and also a pandemic was declared. Clearly long-term trouble was going to affect many businesses, so the market reacted. In just four weeks the market fell dramatically, YTD -32·39% (20th March). Companies were reducing, or in many instances cancelling their dividends entirely. A dramatic turn of events, which must have caused inexperienced investors some sleepless nights. Having witnessed many previous stock market crashes, I just continued as normal, with no selling or changes to my holdings. My equity holdings are supposed to be mainly a collection of non-cyclical sectors, held very long-term. That aspect usually helps in a downturn, but the pandemic hit many sectors extremely hard. My selection certainly helped with dividend income, because by the year end that measurement was of course down, but only at -16·34%. A significant fall, but it is possible that many investors had a disastrous reductions in their total dividend income.

In 2020 I was beaten by the market average, but at the year end was certainly relieved, because the outcome could have been far worse. The earlier than anticipated vaccine announcements, were a great help to market optimism. The UK is still a world leader in the pharmaceutical sector.





Please tell us about your own experience of 2020 ?

[LeoSayer]

Thread running here:

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[Jon39]

LeoSayer said:

Thread running here:

https://www.pistonheads.com/gassing/topic.asp?h=0&...

2016 was a very easy year Leo, +22.17%.

I wonder if those same people who contributed to the 2016 topic, might step forward to describe a very different and dreadfully difficult 2020.

[LeoSayer]

Jon39 said:

2016 was a very easy year Leo, +22.17%.

I wonder if those same people who contributed to the 2016 topic, might step forward to describe a very different and dreadfully difficult 2020.

2016 was not as good for me Jon, +18.4%.

The final few pages of that linked thread are for 2020 numbers.

[Jon39]

LeoSayer said:

2016 was not as good for me Jon, +18.4%.

On the contrary, your +18.4% is a really excellent result Leo.

The FTSE A/S total return (including dividends) for 2016 was +16.75%.
Few of the so called 'City professionals', (consistently) outperform the market.