Saturday 11 October 2014

PIF B: October 2014



Well, well, well and there I was so proud that my Personalized Index Fund B: July 2014 had managed to beat DAX with 1% during the start of year two. No need to mention that of course year one was a big loss.

As can be seen in the graph above PIF B is down at the same development as DAX with -6% since the start. The difference lies in the difference. DAX dropped -7% during the quarter and PIF B dropped a total -8%. The disturbing thing here is that theoretically according to contrarian investing the beaten down companies with low P/E and P/B loose less in value when the stock market drops because they are already so pushed down.

Since I do not see that behavior here I wonder if it is temporary fluctuation or if the theory is wrong. I will wait and see but I am a bit annoyed.

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