Saturday, March 3, 2018

February 2018 update ($504,484 -$16,535 or -3.3%)

↑ FTSE U.K. All Share Index accumulation is up  by $262 or 1.9%
↑ GBP is up to USD by 1.5% or  $200
Grand total additions: $462

↓ Emerging Markets Stock Index Fund is down by $2,879 or 2%
↓ Eurozone Stock Index Fund is down by $5,083 0r 4.1%
↓ US 500 Stock Index Fund is down by $4,419 or 3.8%
↓ Global Small Cap Index is down by $4,620 or 4.1%
Grand total losses $ 17,001
Financial independence from the very begining February 2018 update
Observations:
My bet on investing in the FTSE at the market slump turned out to be right as even with the last couple of days down turn it weathered well, generating 2% over one month.
I could understand when USA slapped sanctions on Russia in 2014 and forcing EU to follow them (USA  export goods to Russia where $11billion, less than 0.1 GDP) by contrast  the USA was exporting $300 billion to China. EU was exporting $170 billion to Russia at the time. However now the USA  are aiming to bend down EU directly with the steel tariffs. 
As medium term threat to next market correction I see two triggers:  car loans and raise of overdue US credit card debt. The credit card debt hit 7 year high at $11,9 bn. More Americans are also falling behind on their mortgages, for which problematic debt levels rose 5.2 per cent over the same period to $56.7bn.
The USA credit card debt makes less than 9 per cent of the country banking industry’s total $17.4tn balance sheet, its accounted for 59 per cent of all loans written off as uncollectable during the fourth quarter last year.

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