↑ Accumulated $4,000 USD as part of my annual saving goal for
October
↑ Received $ 350 as quarterly dividends for my holdings in
S&P500 and Emerging markets ETFs.
↑ Vanguard S&P500 ETF gained $1,100
Grand total additions: US$ 5,450
↓EUR lost $11,983 towards USD
↓GBP lost $1,470 towards USD
↓RUB lost $900 towards USD
↓Vanguard emerging markets ETF lost $710
↓ Gazprom shares lost $3,000
↓ Company shares lost $670
↓Rosneft shares lost $525
Grand total
losses: US$ 19,258
Observations:
-
I
received almost equal dividends for my S&P500 and Emerging markets ETFs ($ 159
and $190). However,
S&P500 costs $41,110 and Emerging markets $16,800. This represents 1.5% annual dividends for
S&P500 vs. 4.5% for the emerging markets ETF.
-
Euro
zone struggles significantly in comparison with the USA. Exchange rate is lowest in 2 years, while
British pound is at is lowest for the last year. RUB is dropped to new low as well. European
Union countries keep arguing with each other and imposing sanctions on the neighboring
countries, which does not help the recovery from the crisis.
-
Dividends
wise from the current portfolio I am getting are $8,500 or 2.6% annually after
taxes. This is currently covers about
10% of the annual expenses.
-
With
only two months to go I will be short of $44,000 of my annual financial independence goal at the
current portfolio condition.
Ouch. That's pretty rough dude (o_O)
ReplyDeleteIt looks like Europe is really struggling. At least you have the $8,500 passive income to help you with yearly expenses. That's good.
North American markets have lately felt the negative sentiment of the global economy too. The Canadian stock index is down 8% from this time last month so you can imagine my portfolio isn't doing so well haha. I think both our updates for the upcoming month will be interesting :)
Hi Liquid,
ReplyDeleteThank you for stopping by. I agree that it does not look pretty and it is not what I was hoping as well. On the other hand even if I reached by annual goal of $370K, the dividends would stay the same. So there will be some moral satisfaction but literally no gain, towards financial independence. Even now S&P500 generates less below 2% a year, this is almost as high as inflation.
I think the trend will continue, as my personal impression that there has been no recovery, only controlled recession. Governments and financial institutions elected not to change the business model, but continue to do it as usual, while injecting more paper money in the economies.
At the very best the trend will continue, i.e. emerging markets will keep generating 4-6%, while developed to hover around 1-2%. Developed countries do not need more money, as CEO already have no idea where to inject capital:
http://www.niterainbow.com/2014/09/s-500-lacks-of-insiration-and-talent-to.html
In the short term I will be focusing on re-balancing portfolio and keep on working. I do not think there will be a short term solution towards my financial independence. I think it is a case of keep saving money for at least another 20 years.