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April, 2020: 10
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. |
4/10/20-Since the prior entry (3/11/20), changes have occurred to our basic 25 equity holdings: two assets have been sold (CMI and DAL) and two bought (JPM and STX).
The new basic holdings then are: AAPL; AYX; CRWD; DDOG; FE; FTNT; GM; HFC; INTC; JPM; LRCX, MU; OFC; OKTA; QQQ; RCII; RSP; SCHD; STX; USB; VHT; VIOO; WFC; WRK, and ZM.
Dividends are set to achieve our goal for 12/31/20. Despite the recent rally (which lowered average annual yields), we should have no trouble exceeding our target of increasing dividend income by 13.5% (as calculated from the latest, 12/31/18, base amount of $37,500). We expect to achieve total portfolio dividends for 2020 of $50,000 or above.
Meanwhile, though, the market value of both bond holdings and stocks has fallen further since a month ago. As of the close of trading yesterday, our liquid assets had a market value of $1,415,002, down $12,417 or 0.87% since the March entry.
Net total assets (including real estate and all other holdings) have decreased 9.21%, or $175,381, from their 12/31/19 level and are now $1,728,052.
We have adapted our portfolio, taking into account the unique economic threat from covid-19. Bond holdings and reserves together now make up 50.31% of liquid assets, while stocks, equity ETFs, and stock mutual funds represent 49.69%. These two major categories of liquid securities will be maintained in a roughly 50/50 proportion until the worst of the corona virus crisis is evidently behind us. Much of the equity side is invested in the 25 basic holdings noted above.
Shifting allocations in favor of more stability is warranted, in my view, as effects of covid-19 related disruptions to global and domestic economies have yet to be fully grasped. Thanks in part to how the pandemic is being diversely confronted, efforts having come late or been poorly managed, these consequences are likely to be profound. We almost certainly will have a severe recession, possibly a depression. It would from my perspective be foolish to assume the more favorable stock prices of the past few days indicate a bear market is over. It may just be getting started.
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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.