Tuesday, April 3, 2018

March 2018 update ($495,459 -$9,025 or -1.8%)

GBP is up to USD by 2.9% or  $408
Grand total additions: $408

Emerging Markets Stock Index Fund is down by $3,909 or 2.8%
Eurozone Stock Index Fund is down by $2,440 0r 2.0%
US 500 Stock Index Fund is down by $2,023 or 1.8%
Global Small Cap Index is down by $1,052 or 0.9%
FTSE U.K. All Share Index accumulation is up  by $9 or 0.1%
Grand total losses $ 9,433
Financial independence performance March 2018 - real life journey http://www.niterainbow.com

Recent market performance clearly shows that being in the stock market during retirement could afford only rich people. In the last three month I lost over $26 K USD.
In Western Europe where we are at the moment there is quite unusual economic events – the unemployment is record low (with except of PIGS – Portugal, Italy, Greece and Spain) but these does not translate into real earnings growth and inflation is picking up. Officially reported inflation is around 3%, but ability to manipulate the figures is something developed countries routinely do. Real inflation is 5%+. This resulting that people do not have money to invest in the economy, on top of heavily regulated market.

Fun fact: Those active fund managers who manage to beat market, on average do it  by 60cents for every 100 USD invested a year. The manager keep 44 cents and give back to the client’s 16 cents only.  These is particularly depressing for pension funds.  This is high risk for very little benefit pushes any potential investors to re-evaluate worthiness of active management and managers. For portfolio of $100 K USD over 30 years the additional 0.16% represent $5K gain.  As a comparison 7% over 30 years represents $661 K gain.
This is industry , as  there are a lot of research governance and monitoring involved, making any call by mass media or analysts are biased (not in investors favor). 

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