Saturday, December 24, 2011

Rough year

Well this was a rough year for investors including myself. The TSX was down 11% or so for the year and including dividends of approximately 2.4% total return was negative 8.5%. My stock portfolio was down 7%. Oil and gas were the worst performers followed by insurance companies and banks. The stars were REITs, telecom and pipelines while strangely enough real estate giant Brookfield lost close to 14% including dividends. The U.S. market outperformed the Canadian. Emerging markets lost big.

Also, the power of diversified portfolios was shown once again. On a net worth basis, I was down 4.8%. Thank you Mr. Real Estate. Not that real estate was such a grand performer overall. My Alberta property values barely budged but there was decent rental income. Vacancies are low but rents have not significantly gone up over the last 3 years. This summer showed some improvement and I hope this trend will continue next year along with a resumption of appreciation.

I wish things were more uplifting, but there is no doubt in my mind that this was a tough year. The Santa Claus rally was good for moral, but I don’t know whether it will carry through into the next year. Europe is quieting down, the U.S. economy is improving and Canada is holding its own.

My outlook for 2012 posted last month stands - for now and maybe another week or so. :)

Wishing you all a Merry Christmas and a Happy New Year. We’ll resume in January with the continuing saga of building wealth.

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