Friday, March 1, 2024

February 2024 update ($915,617 +$48,962 or +5.6%)

↑ Emerging Markets Stock Index Fund is up by $7,098 or+4.8%
↑ Eurozone Stock Index Fund is up by $5,399 or +2.9% 
↑ US 500 Stock Index Fund is up by $23,915 or +6.7%
↑ Global Small Cap is up by $5,271 or +3.5%
↑ Growth fund is up by $3,897 or +5.3%
↑ EUR is up to USD by 0.9% or $2,769
↑ GBP is up to USD by 0.8% or $614 
Total gains: $48,962

February 2024 Road to Financial Independence


It's easy to be quite optimistic, given that the nest egg increased 5.6% in just one month. Phycological threshold of $900K has also been passed. 

The growth (S&P500 February 2024 mover) has been driven by technology companies (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla). These companies combined worth $12 trillion. Combined S&P500 capitalization is around $43 trillion.  There is quite a lot of artificial friction introduced into the system which will slow the growth 
- Apple iPhone sales in China plunged 24%.
- Tesla is an automaker and not a technology company.
- Document 79 (aka “Delete America) will reduce dependence on Microsoft.
- Sanctions reduce Russia trade with EU from $300 billion to $30 billion in 2023.

It doesn’t mean that consumers in China will stop buying phones, or software the money will be spend on other brands.  Likewise, EU “investigation” and subsequent tariffs on Chinese electric vehicles will be reciprocated elsewhere by China. The USA is already trying alternative options be weakening dollar. 

So, I have cautious outlook on the long-term performance.  Should there be no further investments and I am able to keep my nest egg before my retirement for 20 years, at 3% real term (adjusted for inflation) I should have $1,625K which should give me $50K a year retirement income. 

Should I have any additional money to invest I need to think where to, as I am looking for options to mitigate the risks.
On the other hand, I have recently come across a view how much do you need to have in assets to become 1% of the population (in the USA its still means one of the 3 million people and China mainland one of the 14 million people) – not very exclusive but frequently spoke of group:
What does it take to be 1% of the population per country by wealth.
What does it take to be 1% of the population per country by wealth.

What does it take to be 1% of the population per country by wealth.

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