As I feared in the year end update last month, it seems that returns this year may well not be as good. This may be especially so if the old axiom that so goes January, so goes the year does have any substance to it, although I've seen research in this interesting post that it is not that predictive. This also looks at the thorny issue of market timing & seems to conclude that it is hard to find evidence of it being done successfully.
For what it is worth the market timing indicators that I maintain are still in above trend bullish territory for the larger headline UK indices like FTSE 100, FTSE 350 & FTSE All Share. Interestingly Mid 250 & Smaller Company Indices in the UK have fallen below trend and therefore into sell / beware territory after they were hit hard in January. However, the economic indicators that I use along side those are still positive - so in the absence of a recession, hopefully this will just turn into a normal correction at this stage (10 to 20% or so) rather than a horrible -50% bear market. Of course there are plenty of other things to worry about like cost of living, supply chains, Russian aggression etc. but as the other axiom says - the market climbs a wall of worry.
Given that Mid & Smaller companies led the way down while the larger FTSE 100 held up better, it was probably no surprise that the Compound Income portfolio gave back some out performance as it is more exposed to Mid & Small cap names than the FTSE All Share that I use as a benchmark. Please see the graphs at the top of this post for full details of that and other time periods including the 15% per annum achieved since inception in April 2015.
Update on this months Screening & to the Scores.
No update here on this months screening due to time pressures (more on that in a moment). Subscribers will however have been able to see details of this months trades in the transactions sheet & discussion of those stocks considered in the journal sheet.
Aside from that I have been spending some time working on an update to the Scores to bring a broader set of data and greater stock coverage for those who are interested in shares that do not meet the income requirements to be in the Compound Income Scores investment universe. Rest assured the Compound Income Scores will remain in their current form, just that subscribers will have access to a broader information set & rankings which should give some useful insights into all of the stocks covered including those currently in the Compound Scores universe.
Watch this space for a further post with details about the enlarged and enhanced scores when they become available. Any way mind how you go out there in these tricky markets, hopefully with all the focus on inflation & a cost of living crisis doesn't mean we are flying back to a 1970's style stagflation environment. With that in mind I'll leave you with an appropriately naff song from that period.