Income never goes out of fashion
These last four weeks I’ve not had anything valuable to say, and been in apprehension lest anyone imagine on money I place a value higher than peace, health and justice.
Two features about markets: they're prone to over-react in both directions; and even when they look torpid, they can bounce.
Last week many did just that.
For those two reasons - and one I’ve often recited, about never buying anything I’d be unwilling to keep through a downturn - I’ve not touched the Dexterity portfolio. Of my limited resources I keep a large portion in equities because I don’t see anything better to do with the money:
Cash is flexible, but it’s losing value against inflation,
Bonds are losing popularity (=value) because nobody knows how high inflation will rise or will endure,
Property is inflexible, and requires ongoing attention I’m not interested in paying.
Very soon the Dexterity portfolio will be three years old, and I’ve a few things to say about it over the next couple of weeks.
This week, my first chart shows the relative performance of some themes through the last six months:
Gold - Do I recommend it enough, I wonder? After several years of indifferent performance, Gold is now fulfilling its purpose.
Gender Equality - has been handsomely defensive; along with Inclusion & Diversity.
World ESG - a broad coverage has helped it stay afloat.
Water - my all-time favourite, and in everyone’s portfolio for enduring competence.
Food - oh dear! I hadn’t realised this would be so volatile.
China ESG - to my surprise, the Chinese communist party last week announced it will from now on be market-friendly again.
My second chart is about a fund I’d choose if I wanted income, and ESG to align with my values. Among eleven World Dividend ETF, the ESG variant is presently unique; spun off from a non-ESG version. It’s new (July 2021) - not yet £10 million - but the yield is 4.4% so I’m sure it will attract a lot of attention. My chart compares its performance since launch with two enormous World Dividend ETF - by iShares and State Street - the latter being the fund from which spun-off. You can see the tiddler is keeping up very well with the giants.