Portfolio Performance May 2022

Markets have fallen aggressively during 2022. Our total investment is back to where it was in 2020, after adjusting for contributions.

The stocks that have done well so far in 2022 are energy (oil, gas) and utilities have done OK. Unfortunately, we have few of these stocks in our portfolio (unless you have an index like the S&P 500) because they are viewed as bad for the climate and on ESG measures. Technology stocks have been hit very hard, and a lot of the other stocks that did well earlier in the market like consumer stocks have also fallen quite a bit.

In addition, over the last year the dollar has risen 12% compared to a basket of world wide currencies. This makes our investment in overseas stocks (Europe, Japan, China) worth less as a result (even if their investment performance was flat, they’d be down an average of 12% in our US dollars). This also hurts a lot of multi-national companies who have significant overseas sales, because those revenues are “less” when converted back into US dollars.

As a result, we are at a point where we need to re-look at the construction of our portfolio and decide which stocks we want to continue to hold onto and what to sell. And of what we sell, where do we re-invest that cash, or do we hold it in our portfolio to reduce risk?

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