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June, 2003: 5 30
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. |
6/5/03-The stock market's rally, like a rising tide, has continued to lift all boats and ours especially. At the worst of the bear market (2000 to 2003) we were hard pressed to sustain $300,000 in REITs and equities. Now they stand at $444,000, with debt no higher, as a percentage of the total, than when the portfolio was at its lowest.
But since I tend to be a contrarian, we have over the past couple months been net sellers, substantially lowering margin levels and raising money market or short-term bond funds. Of course, I had earlier adjusted the equity side higher (decreasing our bond assets) when they were terribly depressed, to assure that the best performing assets, purchased at bargain levels, had the most exposure. Overall, just over $84,000 has been gained in the net total portfolio since mid-March of this year, and without selling drugs or robbing banks!
While this sounds like a great deal (and is!), to keep things in perspective I should note that it just takes us back to the net assets level at which this journal began, in early 2002. From here on, though, gains will be quite gratifying, representing real profits in income and price appreciation (over our taxes and other expenses), and from a nest egg base amount that should provide adequately for our moderate retirement needs.
6/30/03-Now that we're at the 2003 halfway mark, I've done our regular portfolio analysis to assess progress toward our equities goal. When they were at their lowest last year, near $300,000, I set a target of $500,000 by the end of this year. Currently they stand at $447,800. So, we're well on our way. For the balance of the year we need to average weekly increases of $2008, or .45%. Meanwhile, there are abundant short-term bond fund assets available for exchange, in case the market takes another significant downturn before 12/31/03. We continue to maintain a total liquid portfolio yield of 3%, presently about $15,500 a year.
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.