This article is a website version of our weekly FREE Best Ideas Newsletter sent on 27.06.2023. Signup to receive it in your inbox every Tuesday.

Has your portfolio experienced a 13.25% increase this year? Mine hasn't, it's pretty much unchanged for the year

No need to worry

If you're concerned about your investment performance so far this year, there's no need to be. This surge in the S&P 500 is primarily driven by a handful of gigantic companies.

At the start of June, the 20 largest companies accounted for 30% of the index's weight. The index's total return was 12%, but if you remove the 20 companies, the return was -0.2%.

As you can see, the current market is heavily influenced by technological fervor and AI market frenzy (NVIDEA trading at 210 times earnings!)

If you missed the S&P 500’s 20% correction in 2022, you might start to feel like we're revisiting the technology market bubble before the increase in interest rates.

My stance on this

I don't know about you, but I don't hold any large tech companies.

If you're a subscriber, you already know the companies I hold; they are the ones mentioned in the newsletter, high-quality undervalued small companies globally.

Are you concerned that your returns are falling behind? I'm not, I don't even experience FOMO.

I've long ago abandoned pursuing the next trendy asset that's rapidly gaining value, and I encourage you to do the same. I've suffered too many losses and endured too much emotional stress because of that.

I'm sure this is an experience you can empathize with.

What should you do?

So, you might be wondering, what steps can you take now? It's quite simple, really – just stick to your strategy.

I know it's difficult not to doubt yourself when your returns are trailing behind the market.

But I don't either, as I've stopped chasing the highest current returns. Not only have those returns already been attained, implying you can't achieve them anymore.

And because they are so high, there's a significant likelihood that you're investing just as the trend reverses. But what about a tight stop loss?

You could, of course, enter the S&P 500 and use a tight stop loss with a substantial position. But my question to you is, does that align with your nature and the investment strategy you've developed for yourself over time.

If it doesn't, you are essentially wasting your time and subjecting yourself to undue stress.

There will always be an attractive option outperforming your returns

There's always going to be an investment strategy surpassing yours! With all the available data, it's easy to compare and find one.

But that's not the game you want to partake in.

All you need to do is adhere to your investment strategy with a solid track record, one that suits your nature, and that you can maintain over the long run through good and bad times.

Now is not the time to doubt yourself

Now is not the time to question your strategy or even contemplate replacing it. You may want to explore a few adjustments you can make to enhance it, just as we do here when we test new strategies or incorporate a new ratio or indicator.

But it's not wise to discard your strategy simply because something else is performing better.

Minimize your focus on it as much as possible

Simply overlook it and move forward, implementing your investment strategy.

If you haven't yet found the right strategy, this article may be of assistance:

How to discover your optimal investment strategy – not the one you anticipate

Starting from this month, I will include a brief update on what's happening in the newsletter portfolios.

Quant Value newsletter update

It's hard to believe that the newsletter is almost 13 years old, it feels like just yesterday when we published the inaugural issue.

There are currently a tremendous amount of dividends being disbursed, particularly in the USA where the concepts are still relatively recent. The European portfolio currently boasts a 6.9% dividend yield. The highest is Strabag SE (in the portfolio since June 2021) at a whopping +30%!

The Asia portfolio has an average dividend yield of 5.8%, with the highest being 18.5%! Additionally, with numerous companies listed in Hong Kong, you benefit from no withholding taxes.

Even the Crash Portfolio exhibits an average dividend yield of 5.2%  

Shareholder Yield Letter update

As you're aware, the Shareholder Yield Letter is freshly launched (introduced in May 2023), so it's still too early to make any significant remarks. Overall, the portfolio has seen a 0.5% increase so far.

Yours sincerely, your assistance in adhering to your strategy analyst

PS To identify outstanding companies that precisely match your investment strategy right now, click here.

PPS It's so easy to forget, why not sign up now before you become distracted?