Sunday, August 28, 2016

August 2016 update ($367,547 +$15,405 or +4%)

Accumulated $4,000 USD as part of my annual saving goal for August.
Dividends Rosneft  334 USD or 3% annually
Dividends Gazprom 6,110 USD or 5.8% annually
Dividends Emerging markets sovereign bond (IEMB ) – 101 USD or 4.6% annually.
Vanguard emerging markets (VFEM) up by 297 USD
Rosneft  is up by 693 USD
iShares Core Dax is up by 484 USD
Emerging markets sovereign bond index  (IEMB ) up by 300 USD
Emerging markets corporate bond index  (EMCR) up by 480 USD
EUR is up to USD by 2% or $4,263 USD for my portfolio
GBP is up to USD by 2% or $655 USD for my portfolio
Grand total additions: $ 16,721 USD

Company shares are down by $1,073
Precious metals are down by $249 USD
Grand total losses:  $1,322 USD 

Financial independence step by step.
-         I just noticed that 24 months and about $100K invested my networth is still the same as back in August 2014.  I am very lucky to be young and having a good job. In any other case that would be a disastrous outcome. This primarily due to sharp decline in Gazprom shares ~$55K  USD and EUR exchange rate collapse  to USD  ~ $40 K USD. This is another reminder that unless you are rich, you need to minimize the risks and save in the currency you are going to spend the money.  Admittedly I am sitting less in cash than in 2014 and dividends are going to be ~$10K USD vs. $7.5 K USD (2014) annually.  My plan is to be 100% stocks and bonds by end of the year.
-         Dividends this year so far are $7,780 USD which is close to my target of $8 K USD. I expect it to be around $10 K USD by end of the year, even having 15% of nest egg in cash.
-         - Energycompanies are under a lot of pressure. Major players cannot afford their dividends (even 2% ExxonMobil is paying). Some of the biggest companies — such as BP and Shell — still need to sell off parts of their businesses, and perhaps borrow a bit more, to pay dividends.   So the big producers cannot maintain their dividends if oil prices do not go up. In order to pay a dividend, the largest oil producers need oil at $63 just to cover dividends and investment with cash flow. This is likely to be the end of the remaining four majors keep paying the dividends.  They became too inefficient and expensive.

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