TheAnswerIs.ca
Model Portfolio
TheAnswerIs.ca Inc. Model Portfolio Performance Update (Q4 2023)
TheAnswerIs.ca Inc. announces a total return for the Model Portfolio from inception October 26, 2016, to December 31, 2023 was 74.79%.
The corresponding total return for the Toronto Stock Exchange (TSX), as represented by the ETF XIC, was 75.95%.
The annualized return for the TheAnswerIs.ca Model Portfolio for the 7.18 years since inception was 8.17%.
The trailing 3-month total return for TheAnswerIs.ca Model Portfolio was 7.09%. The trailing 12-month total return for TheAnswerIs.ca Model Portfolio was 13.60%.
Past returns are not indicative of future returns.
Global stock markets leaped up in the fourth quarter of 2023 as inflation ebbed, and central bankers indicated interest rates may start to decline in early to mid 2024. Some global stock markets, including the important American S&P 500, are near all-time highs.
As always the near-term direction of global stock markets are uncertain. We may see inflation continue to weaken, providing room for interest rates to decline, and therefore achieve the proverbial “soft landing” for the economy that economists had hoped for. Or, we could see governments continue to deficit spend, existing wars spread, and a new one start in Asia, causing supply chains to choke, and inflation and interest rates to tick up yet again.
I really don’t know, which is why steadily investing over time, and remaining focused on increasing monthly dividends while staying invested long-term, is the best route for most young investors.
When the stock markets gyrate, focus on a long-term plan and growing dividend income over time, which will eventually support a portfolios’ higher capital value. TheAnswerIs.ca Model Portfolio is designed to collect dividends every single month, whether the market increases OR decreases. The monthly drip of income helps an investor stay focused on the long-term.
Good news for 2024, TFSA limits have been increased to $7,000 this year. TFSA’s remain the best way for investors to avoid the Taxman!
The key to investment success is to make sure any money invested in the stock market can be left untouched for a minimum of 10 years, and preferably much longer. Not selling into a stock market downturn will ensure time for a portfolio to recover and provide potentially attractive long-term average equity returns. Five years before one slows down working, and begins to draw money from their portfolio, one should move a significant portion of their portfolio into Fixed Income.
Invest long-term and prosper.
