For those of you following my quarterly CAPE updates, you’ll know I have been tracking the ten cheapest markets worldwide, as listed on starcapital.de. Last year saw a fantastic before-fees return of 25.59%.
I have started the same process again this year, with a post early in 2018 kicking it all off. You can read it here.
Oh 2017, how I long to have you back. In truth, the value of the portfolio topped out in November of last year, and has been falling steadily since. Total return year to date in 2018 has been -10.02% against the FTSE All-Share TR of –6.87%. I’m falling behind my benchmark, which is very disappointing. However, nothing will be changing as a result. I’ve been here before. I’ll be here again. Total return since inception is a more pleasing 51.79%, against a 27.8% increase for the FTSE All-Share. So I’m well ahead of the benchmark since inception. That’s the important thing. You can view the portfolio here.
So it’s finally happened.
Let me phrase that.
So something has finally happened.
Since beginning my portfolio in August of 2015, returns have been largely stable and definitely favourable. I always bang on about letting your portfolio do its thing and not checking it every five minutes, which to be honest has been easy for me so far. A nice, relatively linear upward line in my portfolio value since it began has certainly helped me sleep at night.
2018 has started a little differently.
Last year marked my first full year tracking a basket of ETF’s representing the ten cheapest countries by CAPE ratio. The data on this was obtained from the excellent starcapital.de website. My final post of the year for 2017 (see here) showed a before-fees return of 25.59%.
So to kick off 2018 (albeit a little later than planned), which are the ten cheapest countries, and which are the cheapest ETF’s to obtain exposure to them?
Continue reading “Ten Cheapest Countries by CAPE Ratio 2018”
As we settle into 2018, I’ve been giving some consideration to valuation. Specifically, what we can expect for the year ahead. Having now had the opportunity to review the returns obtained by fellow investors it seems clear 2017 was a very good year indeed. My 42.72% return, as outlined here, was, for me, exceptional and unlikely to be matched this year.
But with such a large run-up last year, are equities expensive? Are we, dare I say it, approaching a bubble?
Another year, another all time high for UK markets. Both the FTSE 100 and the FTSE All-Share ended at their highest point ever, with returns of 12% and 13% for the year, respectively. Before looking at how the portfolio has performed alongside this, let’s get the numbers out of the way.
Year-to-date, my portfolio has returned 42.72%, dividends included. Since I began it in August 2015, it has returned 65.28%. I have said all along that so long as I am capable of beating the All-Share index (my benchmark) I will pick and choose my investments. I’m delighted therefore to say that I have beaten this benchmark again in 2017.
