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March, 2020: 11
Disclaimer - IMPORTANT - Read this first!
| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
3/11/20-Since the prior entry (2/12/20), changes have occurred to our basic 25 equity holdings: two assets have been sold (COUP and UMPQ) and two bought (DAL and ZM).
The new basic holdings then are: AAPL; AYX; CMI; CRWD; DAL, DDOG; FE; FTNT; GM; HFC; INTC; LRCX, MU; OFC; OKTA; QQQ; RCII; RSP; SCHD; USB; VHT; VIOO; WFC; WRK, and ZM.
Portfolio dividends are on target to achieve our goal for 12/31/20. Indeed it apparently will be easy to exceed our annual target of increasing total dividends by 13.5% (as calculated from the latest, 12/31/18, base amount of $37,500). Thus we are hoping to get that figure up to $50,000 or above for 2020.
That, however, is the end of the good news for this entry. In the last day or so stocks have fallen into bear market territory. In fact, given the high level of uncertainty in politics, world health, the US and global economies, and oil supplies, it appears likely the swoon in equities will continue, perhaps for some time. As of the close of trading today, our liquid assets had a market value of $1,427,419, down $211,532 or 12.91% since the previous posting. Substantial as that is, it is less than the losses in the S&P 500 over the same period (down 19.14% just since 2/12/20).
Our net total assets (including real estate and all other holdings) have decreased 8.58%, or $163,254, from their 12/31/19 level and are now $1,740,179.
Prior to the latest big sell-off in equities, we were as usual keeping about 10% of our liquid assets in reserves, 23% in bond assets, and 67% in stocks. The major drop in stocks has now changed those percentages to around 15.00% in reserves, 29.50% in bond assets, and 55.50% in stocks, exchange traded equity funds, or stock mutual funds. The majority of these equities are in our basic 25 holdings cited above.
Since the portfolio's allocation is currently skewed from intended levels, I shall be gradually moving assets from reserves and bond funds into equities. In view of a strong expectation that the markets will continue their slide for the foreseeable future, it is tempting to sell off our riskier assets to have even more is reserves that, hopefully, might be used for snatching up bigger bargains later. Yet to do so would lock in losses now, and there is no guarantee that the anticipated continuation of this bear market will follow the script in my head. So am sticking with a plan to merely rebalance further when the proportions of our portfolio justify it, knowing that sooner or later this approach should reliably deliver gains while maintaining a lower overall risk level.
Disclaimer and Disclosure Statement
Neither I nor Investor's Journal will be responsible for losses by anyone who obtained ideas from this site.
This diary is intended for personal interest and general information only. You are advised to do your own research (as well as to consult highly compensated professionals) before spending money on anything.
I know of no reason anyone should take my financial musings seriously. At best I am a dedicated amateur providing a bit of investment-related insight and entertainment, at worst an amusing diversion.
My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.