Relief is sweet
Since early September I’ve been averse to write anything about the portfolio. Seeing many markets slither - prompted chiefly by the impact of ’the supply chain crisis’ and its consequences for inflation - I felt inadequate to offer any deep or innovative wisdom.
Now I’ve read what the US Federal Reserve’s chairman said late last week, I’m feeling more confident that to do nothing has been appropriate action. In his words, “The risks are clearly now to longer and more persistent bottlenecks, and thus to higher inflation… Supply constraints and elevated inflation are likely to last longer than previously expected and well into next year, and the same is true for pressure on wages.”
Lest we've to endure a longer period of higher inflation than any of us will enjoy; for that I’m preparing. Once again I take comfort that a portfolio of low-cost ETF - tracking indices with global compass; focusing on themes we recognise as shaping the future; diversified so widely, the largest holding (Tesla) is less than 1% of the total value - offers peace of mind. With relief I see performance no worse than either of my benchmarks; also that even the most recent Dexterity investor is in profit.