Saturday, June 8, 2019

May 2019 update ($487,899 -$25,268 or -%4.9)

EUR is slightly up to USD by $2,063  or 1%
↑ Additional cash to invest  $4,032 under my pension plan scheme
Grand total additions: $6,095

Emerging Markets Stock Index Fund is down by $8,565 or -6.8%
Eurozone Stock Index Fund is down by $6,642 or -5.6%
US 500 Stock Index Fund is down by $8,143 or -6.4%
Global Small Cap Index is down by $7,563 or -6.6%
Vanguard FTSE U.K. All Share Index is down by $230 or -0.9%
GBP to USD is down by $220 or -0.8%
Grand total losses: $31,363

How to get to financial independence -
Eurozone is the biggest loser in the current market. After two years with all dividends re-investment it grew 0%.  Western Europe is actively engaged in micromanaging business (how people should provide their services from hairdressers to engineers), while indulging in the populist sanctions, politicking and allowing workers being actively discriminated by large corporations. The situation is so dire that the EU central bank is ready to “use all the instruments that are in the toolbox”. This happens if the slowdown in the bloc’s export-driven manufacturing sector began to infect other parts of the economy. The German 10-year bond is again near zero (last time it was there in 2016). The expectation of cheap money  led to slight raise in EUR to USD exchange rate. 
Mine combined monthly pension plan contributions are at $1,250 (including tax breaks) at least for the next 18 months.  I started looking at some bond funds. The global bond market has enjoyed its biggest weekly investor inflows in over four years, with investors dumping equity funds in favour of fixed income amid concerns that the international economy is wilting, and central banks will have to cut interest rates. For the time being I will remain in cash, looking for a suitable fund or opportunity to invest in equity, if the market slides again.

Fun fact: I recently decided to minimize buying brewed coffee / tea outside of the house. I do not believe that saving $300 a year will make big difference to my financial independence. This is more for prosaic reasons – over payment and ethics.
Currently there is oversupply of coffee, due to an excellent harvest. Yes, we do not see any changes at the supermarkets, but a lot of the farmers go bankrupt and switch to the other crops.  How much, do you think a farmer gets from average $4 coffee cup bought on a street?  Less than 2 cents.
Here is what goes into your coffee:

What goes into $4 coffee cup - detailed cost breakdown

From the 15 cents you see spent on actual coffee beans here is further breakdown:
$4 coffee cup actually less than 2 cents go to farmer

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