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.
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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.
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