Comments: The portfolio gains 1.95% in December. The overall gain for 2009 is 29.49%. This is commendable considering the 28.2% loss in 2008.
However, when 2008 and 2009 were taken together, the portfolio’s performance is at a value of only (1-28.2%)x(1+29.49%) =0.930, i.e. there is a loss of around 7%.
2008 & 2009 proved to be a very good reminder of the need to stay the course. If an investor were to sell out at the bottom during Feb 2009, (s)he would not be able to participate in the rally starting from Mar 2009.