Investing to become financially independent
Investing to become financially independent
Discover our analysis of our stock market performance, which is now outperforming expectations thanks to the dollar's leverage effect, with a significant increase compared with the end of 2010. Despite remaining in negative territory at -4.58%, this positive correction in the equity market and the dollar offers encouraging prospects for 2011.
The falling dollar had a major impact on our portfolio, which posted a negative performance despite holding up relatively well against the euro. The year ended with strategic adjustments, notably concerning Sunoco Logistics and Paychex, in a context of prudent risk and volatility management.
Our portfolio declined by -4.37% this week, despite a positive SMI of 0.19%, due to low stock volatility and the impact of the strong dollar. This performance is explained by our long-term, dividend-focused investment strategy, as well as by currency fluctuations, notably the strength of the Swiss franc against the dollar and the euro.
Our investment portfolio continues to grow, posting -2.76% since February 3, in parallel with the Swiss market, which reached -0.23%. The defensive strategy focusing on international companies is proving its worth, particularly in the face of dollar fluctuations, with controlled volatility of 12.32% versus 17.60% for the SMI.
In addition to keeping consumers warm with its flagship North Face brand, VF Corp (NYSE: VFC) also warms investors' wallets with an attractive yield of 3.3%. Despite notable volatility, the company boasts 37 consecutive years of dividend increases and a conservative payout ratio of 46.13%.
VF Corp (NYSE: VFC): Winter comfort and resilient dividends make for a strong portfolio Read More »
The portfolio posted a decline of -3.04% last week, compared with -0.52% for the SMI, despite CenturyLink's (CTL) excellent performance. Although our defensive positions tend to underperform during bullish market corrections, the portfolio's volatility remains under control at 12.29%, well below that of the SMI at 17.59%.
Our portfolio's performance improved significantly relative to the SMI, with the spread narrowing to -2.21% from -1.71%, boosted in particular by ADP's excellent performance on the Nasdaq. Controlled volatility and an improved Sharpe ratio testify to optimized risk management, despite the negative impact of dollar fluctuations.
Despite the recent market downturn, our portfolio has maintained a relatively stable performance thanks to its defensive positions and the favorable evolution of the dollar. Volatility remains under control at 12.32% versus 17.57% for the SMI, while McDonald's continues to outperform the S&P 500 despite increased volatility.
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