Friday, July 3, 2020

June 2020 update ($535,980 +$23,162 or +%4.5)

↑ Emerging Markets Stock Index Fund is up by $7,087 or +6.4% 
↑ Eurozone Stock Index Fund is up by $5,138 or +4.9%
↑ US 500 Stock Index Fund is up by $2,570 or +1.9%
↑ Global Small Cap Index is up by $2,683 or +2.6%
↑ Fidelity Growth Fund is up by $1,194 or +2.4%
↑ Financial independence savings for last month $2,000
↑ EUR is up to USD by 1% or $2,076 for my portfolio
↑ GBP is up to USD by 0.8% or $414 for my portfolio
Grand total additions: $23,162 USD

Financial Independence journey - June 2020 update
S&P500 is already higher than a year ago (pre-COVID 19 pandemic) by 7%. This is incredible. I could only attribute it to huge amount of free money printed by the government and investors leaving other funds.

Eurozone is just approaching May 2017 level.  If you think about it, the S&P500 grew by 35% since 2017 in nominal terms, why Eurozone achieved nothing. 

I had a colleague of mine who was planning his retirement in 2007 only to be hit by 2008 crisis. He had to put his plans on hold by ten years.  The same is happening now, for the defined contribution plans, particularly in the western europe. 

Some of the defined benefit pension plans have not recovered from 2008 crisis and were hit again by COVID-19 one.   While their assets had more than recovered, their liabilities had massively grown due to falling interest rates and increased life expectancy. Many of them underestimated the risks of falling rates, and did not hedge interest rate risk for
many years. 

My overall nest egg has grown on the 12 months rolling basis, but this is mainly due to additional cash invested.  Otherwise the portfolio still $11K below or 2%. 

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