December 2020 Newsletter
Merry Christmas and Joyful New Year
Plus a look at the stock market over 2020
Firstly, Rudolph and the Team would like to take this opportunity to wish you all a very Merry Christmas and Joyful New Year.
Christoph and Nicola, will be here as always, every day throughout the holidays and the rest of the team will be back in early January 2021.
What a year 2020 has been – we all have our stories, experiences and opinions of everything that has taken place and continues. I won’t go there!
However, a couple of comments in relation to the stock market. It may have appeared to have been an eventful year for shares but that is not really the case for those who held steady with their plan and did not buy or sell on emotion.
The ASX 200, i.e. the Australian share market, is at almost exactly the same spot at the moment as it was on January 2nd 2020:
You can see that at the time of writing the ASX 200 moved from 6,690.60 on January 2nd to 6,696.50 on December 16th 2020. That is a tiny move of about 0.1% and that is with the stock market moving by five to ten times that much every day.
As the share market also pays dividends, the overall return has been positive at 1.48% in the last 12 months:
The charts look a little different as I needed to use different providers for the two charts, but the message is the same.
If you look at the bottom left yellow highlight, you see a small 12 months return of 1.48% but if you look at the right highlight you can see that it has been a wild ride. First the market went up, then into freefall but recovered a fair bit of it within two months – much to the surprise of most people – and then had a great November which made up for all the losses incurred so far.
We very much look forward to sharing 2021 and beyond with you.
Christoph Schnelle and Team
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