While the Investometer chart shows large changes in both accounts this month the reality is I increased cash by 9% this month. As I commented the other day I’ve been selling down fairly to overvalued US stocks, notably FDX and II-VI, and buying undervalued Australian shares.

The growing account with regular cash flow is the SMSF I manage. Due to regular personal and employer contributions, the coming capital return from Biota and other dividends I’m happy maintaining a lower cash balance in the SMSF. If the market goes down I’ll have new cash to put to work each month. The SMSF currently restricts equity investments to Australia.

The larger account is an investment trust, which for all practical purposes has no external cash flow. The trust has mainly invested in the US, but the allocation to Australia is increasing. I’m happy with the current cash position in the trust.

As I said last month those in accumulation phase should be rooting for a sell-off. The longer and lower prices go in the near term the better the future returns on new cash.

Fusion Investing Portfolio

The FI Fund closed November 5.5% higher and is now outperforming the ASX200 by 16.7%.

Related posts:

1. Investometer and Portfolio October Update
2. Investometer Update
3. Investometer August Update
4. Fusion Portfolio and SMSF Performance
5. Fusion Investment Portfolio Update – July 2009
6. Portfolio Update come Investing Philosophy