Monday, May 4, 2020

April 2020 update ($489,265 +$47,946 or +%10.9)

↑ Emerging Markets Stock Index Fund is up by $9.509 or +9.3%
↑ Eurozone Stock Index Fund is up by $5,937 or +6.4%
↑ US 500 Stock Index Fund is up by $14,328 or +12.8%
↑ Global Small Cap Index is up by $11,545 or +13.4%
↑ Fidelity Growth Fund is up by $5,014 USD
↑ Financial independence savings for last month $2,000
Grand total additions: $48,334 USD

↓ GBP is down USD by 0.8% or $347 for my portfolio
Grand total losses: $347 USD

Financial Independence April 2020 update
This is not part of my nest egg, but worth noting. The timely investment in the kids tax efficient account brought them 14.5% return for the last month. I wish I had more free money available. I would put them mostly in S&P500.

From this point onward it will be a rocky road back and forth for the stock markets. Now the small and medium size business owners are ruined. The market has been divided by the sharks. Ordinary people, after sitting home for the two months, mostly lost their savings and the jobs.  The people are now desperate to go out and take all the risks of getting the virus on themselves. The rich will continue to work from their homes.  For many, it is matter of survival now, but their salaries will be depressed even when profits will rocket next year.

There are some interesting assessments heard from different sources:
  • German economy may need at least EIGHT YEARS to recover from Covid-19 recession. Germany is expected to lose between five and 10 percent of its GDP by the end of 2020. This is according to US based consulting group McKinsey a best-case scenario for Germany.
  • Warren Buffet on  the USA based airlines: “I don’t know if two or three years from now if as many people will fly as many passenger miles as they did last year”. 
  • A little bit scarier one is that some of the America’s largest pension funds are looking to pour money into private credit. This is branded as an opportunity for investors that have enough liquidity to lend to struggling companies. Which is a gamble with pensioners’ money.
European union fell to individual countries during pandemic. It is not only in terms of the failed medical response but financial aid to the struggling members. This explains why EU stock market is the worst recovered from the crisis. If you take, as reference point, that all my funds were bought at 100,000 in 2017,  Eurozone it is the only one who lost its value to 2017.

My further worry is that EU is collaborating with the USA in attempt to shift blame for lack of response to pandemic from the West to China. Chinese have claimed corona virus came from the United States during the Military World Games in Wuhan last October. Namely Sgt. 1st Class Maatje Benassi brough COVID19 coronavirus to China from the USA. This is attempt in extortion to get some economic advantage or compensation from both sides.

Fun Fact. Davos is a popular ski resort with a conference center that hosts the annual World Economic Forum. Influential leaders from around the globe to meet in Davos, Switzerland for the World Economic Forum's Annual Meeting 2020.
What is a little known fact is that prostitution is legal in Davos. Sex workers ply their trade is delegates' hotels and bars along the town's promenade. Sexual exploitation remains a popular norm of the west. There are approximately twenty thousand prostitutes come to serve the world leaders horizontally every year during the event.

No comments:

Post a Comment