Tuesday, February 4, 2020

January 2020 update ($566,569 -$8,517 or -%1.5)

Monthly pension plan investment $2,293 (outstanding tax rebate on the investment)

Emerging Markets Stock Index Fund is down by $4,623 or -3.5%
Eurozone Stock Index Fund is down by $2,199 or -1.7%
US 500 Stock Index Fund is down by $119 or -0.1%
Global Small Cap Index is down by $3,443 or -2.8%
GBP is down USD by 0.8% or $425 for my portfolio
Grand total additions: $10,809

     I did not include any savings this month, as I had none. I spent a lot of money due to the job change but expect to start the savings in February, assuming everything go well.
     Western european  stock market will be corrected and not because of the BrExit or their inability to have independent and economically oriented policies. Dabbed as wish list the UK government declared  intention to ban sales of new fossil fuel powered cars by 2035. Britain plans to ban the sale of new petrol and diesel cars by 2035, including hybrids.  I think the rest western europe will follow soon.
      Fossil fuel behemoths represent 10% of British FTSE -All-Share Index ($3tn)  S&P500 – 4% ($28tn). The fossil fuel companies are bureaucratic creations, which can only survive in lush economic environment of fat margins 30%+.  Upcoming changes in western europe will hit them hard. The companies were involved in politicking and will unlikely to survive outside of europe (BP, Equinor (state  oil company from Norway), Eni,  Repsol,  Shell, Total and other smaller ones) .  Additionally, the big oil is keep loosing money on “shale revolution”.   Of course there is a room for rationalisation or corruption to delay the policies implementation.

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