Well, can you believe it is the end of the year?

2016 has been a big year on many fronts with our interest rates being lowered by the RBA further into record low territory, we had the Olympics come and go in Rio, the global rise of the ‘Wutburger’ class (angry citizens) voting for the UK to ‘Brexit’ and gifting Donald Trump the most powerful position in the land.  Trump’s inauguration is on Friday January 20 which will surely provide some interesting viewing leading into Australia Day.

Re the markets, the US has risen to record highs post their election with the DOW nudging 20,000.  Our market, the ASX200, opened the year at 5,270 then fell away sharply between early January and April giving us 4 distinct attractive buying periods where the market fell below 5,000 before recovering to new successive intra yearly highs.  With the market now at 5,539, that’s a modest 5% capital growth point to point for the calendar year so far on top of some stable, consistent and growing dividends from our preferred LIC’s and businesses.  All in all, a solid year despite the usual and expected significant pessimistic noise from the soothsayers and readers of the sheep guts.  The benefit of hindsight gives us a timely reminder to buy quality LIC’s ideally at a discount when the market is at its most fearful.  We had several of these moments during 2016, and we really welcome the ‘what do we buy?’ calls from you all on the sounds of cannons.

SOME SEINFELD WISDOM

If you get a spare 5 minutes over the break, have a listen to some pearls and pearlers from Jerry from an interview he did back in 2008 with Andrew Denton on Enough Rope.  I love it .. very simple, rational, practical and funny.

You’ll hear some of his humorous views on marriage, on George Burns, on enjoying life, and his ‘3 Rules to Succeed in Life’ .. terrific viewing.

(Suggest you start at the 4 minute mark if you want the 5 minute version)

https://www.youtube.com/watch?v=uyYFQRaPghA

On behalf of Fletcher and April, we wish you all safe travels over the break and a happy and laughter filled Christmas season into a healthy and successful 2017.

Kind regards,

Luke