This was our first full financial year but certainly will be more memorable for the bad things than good! Our results were terribly affected by first the Ukrainian invasion by Russia then by several issues related to China over Covid and Taiwan threats. The annual return being a negative 14.1% with a copy of our spreadsheet here.
We can only hope that the subsequent rebounds will prove to form a new base building pattern for the eventual recovery but, with the risks of more terrible things happening in the future, this is still probably not the time to start using our relatively high levels of cash to “buy the dips”. The main issue being that rising interest rates will continue to create some resistance until people’s fears abate and inflation gets back under control again. For that to happen, we need supply chains around the world to be restored back to whatever the “new normal” will be? As the problems not generally due to demand, inflation for necessary goods is unlikely to be reduced anytime soon – but in an age of rapid changes it could as China holds the keys to fixing this problem sooner if they wanted.
The Brokers reports are also available using the following links: Interactive Brokers Report June 2022 and Bell Report June 2022
We had some good investments like Western Areas Gold being taken over but most stocks fell out of favour with panicking investors. It’s times like these that we have to remember the “bigger picture”. There is a lot of wealth destruction going on because of the wars, climate, and lockdowns. However, the people who remain invested will be the ones that make the greatest gains (though nobody knows exactly) when things gets better again. So investing requires a lot of patience at times as most of the businesses were wise enough to issue more shares and have a decent amount of cash to hopefully survive during these tough times. That’s the main thing to monitor (through the regular cash reporting updates) for now. We can only hope that there’s some resolution of most of the problems before Christmas?
Likewise, the Crypto currencies remain extremely oversold. We’re down about 50% down on the $20,000 amount we invested. With the majors holding up better than the thousands of others that are close to worthless now. However, it would not be surprising if there is a time that these make a comeback and we only have a loss when we sell them. Remembering that for years Bitcoins value stayed quite low and the reasons for these to be useful into the future have not gone away either. However, we will soon need to take another look at these to see if we should perhaps reduce some of the ones that are unlikely to recover. See the summary holdings below:
The details of holdings are also below:
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