Comparative annual returns

[JacqJolie]

I've just started tracking the gains in my stock accounts monthly the last 3 months. In November, I had a 32% annualized return and in December a 29% annualized return. That seems freakishly high to me, and if I wasn't an accountant by (soon to be former) profession, I'd question my math!

Can anyone point me to where I can find the average market increase for the same periods? Should I just be looking at the average gain in the TSX (the exchange where my stocks are traded) to get a comparative?

 

[LOL!]

Some benchmark returns: https://personal.vanguard.com/us/funds/tools/benchmarkreturns

A good way to see a return for any date is to use finance.yahoo.com to chart an index fund along with any other fund. The graph will be shown as percent-change or performance if you will.

Although 30% might seem high, it is nothing special for this year. High returns almost always follow debilitating bear markets and Great Recessions.

 

[JacqJolie]

Thanks so much LOL. Unfortunately, seeing some of the awesome gainers in the site you pointed me to, I don't feel quite so happy about my returns. Looks like I'm even below average compared to some. Oh well, everybody's got to start somewhere.

 

[CCdaCE]

Sounds like a lot "up" because you are annualizing one month. Don't forget to compare it to the down months, like Feb., -13% in one month for the S&P 500. Maybe that chart is off a day, but you get the point.

Then, annualize that.

The hardest part is pickin' the appropriate benchmark.

-CC

 

[kaneohe]

Just wondering if monitoring of short-term returns will tend to lead you to short-term thinking/actions? I tend to ignore the quarterly return numbers on fund reports and look at the longer term results.

 

[JacqJolie]

Hi CCdaCE, I feel like a dirty market timer because I actually bought most of my stocks in February (from cash - just maxing out my RRSP contribution room because of an uncommonly high income year) and transferred some GIC's that had matured at the time too. And my previous big buy-in time was Nov/08. Pure dumb luck.

kaneohe, I agree with you. I'm just starting out here trying to more actively manage the portfolio. Previously, I followed "The Wealthy Barber" strategy of buy and don't look at your statements. I lost a bit of money doing that though. Fortunately, I didn't have a lot to lose but now that I'm retiring, when my income will come primarily from my portfolio, I can't afford to be so stupid anymore.

I've just bought and will plow through The Bogleheads Guide to Investing and William O'Neil's "How to Make Money in Stocks" and all the good info. on this site. Everyone here is so patient in explaining these things to a newbie. Many thanks!

 

[LOL!]

I've just bought and will plow through The Bogleheads Guide to Investing and William O'Neil's "How to Make Money in Stocks" and all the good info. on this site. Everyone here is so patient in explaining these things to a newbie. Many thanks!

Well, don't get confused since O'Neil and Bogleheads at are opposite ends of the spectrum when it comes to how to invest. My vote is with Bogleheads and a good asset allocation plan along with rebalancing occasionally.

It would not be stupid to use O'Neill's book in your fireplace.

 

[DblDoc]

How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition by William J. O'Neil

What is missing here is explicitly stating who is "winning": 1) The author on book sales and 2) the brokers who are getting commissions every time you trade.

Like LOL! I recommend the Bogleheads guide and also anything else on this list: Investment Books.

As for the O'Neil book LOL! is always polite, I could recommend much more "colourfull" uses with which to put it .

DD

 

[JacqJolie]

How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition by William J. O'Neil

What is missing here is explicitly stating who is "winning": 1) The author on book sales and 2) the brokers who are getting commissions every time you trade.

Like LOL! I recommend the Bogleheads guide and also anything else on this list: Investment Books.

As for the O'Neil book LOL! is always polite, I could recommend much more "colourfull" uses with which to put it .

DD

Thanks for the link DD, I guess I'll stick with the Bogleheads then and check out the others.
What can I say? My sister recommended it and I thought she loved me - although I think she does get a newsletter etc. from the O'Neil organization. Hmm... I wonder how she's done vs. my Peter Lynch "pick the industry you know" method (O&G for me - but I'd like to diversify).
Although my furnace did die on Christmas day, and the fireplace could use some kindling. Early pioneers used to use manure in their fires, didn't they? Maybe it would burn longer...