Dec 062018
 

A lot has happened globally in the last few weeks that makes me weary about the growth of the financial markets over the next 1 to 2 years. Inflation in France sparked violent protests. The U.S. federal budget deficit for fiscal year 2019 is projected to be nearly $1 trillion. It will be hard to find borrowers who are willing to buy all those treasury bonds. The 2 largest foreign holders of existing U.S. debt are China and Japan. And both have become net sellers. The economic tension between the U.S. and China is momentarily on hold, but 3 months from now the trade war could escalate.

So what I plan to do going into 2019 is to keep more cash on hand. This will allow me to maneuver more easily as cash is very liquid. If interest rates become too high I will use the cash to pay down my debt. If stocks in general fall into a bear market I will be buying up more shares. ūüôā

Liquid’s Financial Update

*Side Incomes: = $3,400

  • Part time job =¬†$900
  • Freelance = $1200
  • Dividends =¬†$900
  • Interest = $600
*Discretionary Spending: = $2,000
  • Food = $300
  • Miscellaneous =¬†$500
  • Interest expense = $1200

*Net Worth: (őĒMoM)

  • Assets:¬†= $1,225,600 total¬†(+1400)
  • Cash = $19,800¬†(+2300)
  • Canadian¬†stocks¬†= $162,600¬†(-4500)
  • U.S. stocks = $117,400¬†(+300)
  • U.K. stocks = $20,400¬†(-300)
  • Retirement = $117,400¬†(+2700)
  • Mortgage Funds = $34,700¬†(+500)
  • P2P Lending = $33,300¬†(+400)
  • Home = $275,000
  • Farms = $445,000
  • Debts: =¬†$420,200 total¬†(-800)
  • Mortgage = $190,300¬†(-400)
  • Farm Loans = $180,400¬†(-500)
  • Margin Loans = $49,500¬†(+100)

*Total Net Worth = $805,400 (+$2,200 / +0.3%)
All numbers are in $CDN. 

 

 

Financial markets are stretched thin. The S&P 500 is still trading relatively expensive at 22x earnings, even after the pullback that started in October. There isn’t much room for growth in equities. Real estate markets around the world are softening. U.S. home building company Toll Brothers warned that the housing market slowed further in November, particularly in California. Home prices and sale volume in Canada, particularly in Vancouver and Toronto are going down. Prices will likely fall further into the upcoming spring. But Canada’s continued trade deficit and high energy prices mean the cost of living will probably climb higher. The theme for 2019 could very well be higher inflation but lower investment returns. If that turns out to be true then I would prioritize paying down debt and acquiring hard assets.

 

__________________________________
Random Useless Fact:

Nov 052018
 

It was bound to happen sooner or later. October was a bad month for the stock markets. Some of my highest growing stocks in the technology sector such as Facebook, Amazon, Netflix, and Google (Alphabet) or FANG stocks fell into bear market territory, which means they’ve fallen by more than 20% from the top. Here is a look at how much stock indexes lost in the month of October.

  • TSX Composite -7.5% (Canada)
  • Dow Jones -5.9% (USA)
  • S&P 500 -7.9%¬†(USA)
  • NASDAQ -10.7%¬†(USA)
  • ASX 200 -6.0% (Australia)
  • FTSE 100 -5.4% (UK)
  • SSE Composite -6.2% (China)
  • Nikkei 225 -12.4% (Japan)

My investments weren’t able to escape this global stock market correction, and my net worth fell a bit. I hope the next couple of months will make up for it.

 

Liquid’s Financial Update

*Side Incomes: = $7,300

  • Part time job =¬†$600
  • Freelance = $500
  • Dividends =¬†$900
  • Interest = $600
  • Farm rent = $4700
*Discretionary Spending: = $2,100
  • Food = $400
  • Miscellaneous =¬†$500
  • Interest expense = $1200

*Net Worth: (őĒMoM)

  • Assets:¬†= $1,224,200 total¬†(-15,900)
  • Cash = $17,500¬†(+4700)
  • Canadian¬†stocks¬†= $167,100¬†(-9700)
  • U.S. stocks = $117,100¬†(-9,800)
  • U.K. stocks = $20,700¬†(-900)
  • Retirement = $114,700¬†(-600)
  • Mortgage Funds = $34,200¬†(+100)
  • P2P Lending = $32,900¬†(+300)
  • Home = $275,000
  • Farms = $445,000
  • Debts: =¬†$421,000 total¬†(-2,700)
  • Mortgage = $190,700¬†(-500)
  • Farm Loans = $180,900¬†(-600)
  • Margin Loans = $49,400¬†(-100)
  • CIBC Line of Credit = $0 (-1500)

*Total Net Worth = $803,200 (-$13,200 / -1.6%)
All numbers are in $CDN. 

 

This was the first down month I’ve had in over a year. A few things saved my net worth from dropping further: My farmland paid me some rent. My fixed income all ended the month with positive returns. And despite being invested in the stock market for the past 9 years, stocks only take up about 34% of my assets. This means any changes in the overall stock market will probably affect my net worth by only 1/3rd as much. ūüôā

 

 

__________________________________
Random Useless Fact:

Some people say Elon Musk reached puberty in his 30s

Oct 012018
 

2018 is passing by quickly. We are already in the final quarter. ūüôā My stock portfolio’s value dropped a little in September. But I still managed to grow my net worth by half a percent for the month thanks to my multiple income streams. By¬†January 2019 my goal is to have a net worth of $1 million. ūüôā

A stock market dip in September is normal Рperhaps even expected. Since 1896, when the Dow Jones Industrial Average was created, the Dow has lost an average of 1.03% in September. That compares to an average gain of 0.76% across all other months of the year. The funny thing is the Dow actually climbed higher this September. But it was the S&P/TSX Composite in Canada that dropped 1.8% lol.

Liquid’s Financial Update

*Sidel Incomes: = $2,800

  • Part time job =¬†$600
  • Freelance = $300
  • Dividends =¬†$900
  • Interest = $500
  • Solarshare payment = $500
*Discretionary Spending: = $1,700
  • Food = $300
  • Miscellaneous =¬†$500
  • Additional Interest = $900

*Net Worth: (őĒMoM)

  • Assets:¬†= $1,240,100 total¬†(+1,500)
  • Cash = $12,800¬†(+1600)
  • Canadian¬†stocks¬†= $176,800¬†(-1000)
  • U.S. stocks = $126,900¬†(+900)
  • U.K. stocks = $21,600 (unch)
  • Retirement = $115,300¬†(-500)
  • Mortgage Funds = $34,100¬†(+200)
  • P2P Lending = $32,600¬†(+300)
  • Home = $275,000
  • Farms = $445,000
  • Debts: =¬†$423,700 total¬†(-2,700)
  • Mortgage = $191,200¬†(-400)
  • Farm Loans = $181,500¬†(-400)
  • Margin Loans = $49,500¬†(-400)
  • CIBC Line of Credit = $1,500¬†(-1500)

*Total Net Worth = $816,400 (+$4,200 / +0.5%)
All numbers are in $CDN. 

Inflation in Canada is picking up. We are at roughly 3% this year compared to 2% in 2017. Higher inflation will have a positive impact on real estate prices. I’m thinking about buying another property either next year or in 2020. Home prices will likely continue to increase in Vancouver and Toronto, at least in the long run. So getting more real estate now is probably a good idea.

Due to the nature of my new job I will not disclose my annual salary from now on. I was able to negotiate a relatively high salary for myself, about 20% more than my previous employer which shut down recently. Lest any of my coworkers stumble upon this blog I don’t want them to know how much our company is paying me. But I’ll continue to share all other sources of income such as from investments and freelance graphic design. ūüôā

 

 

__________________________________
Random Useless Fact:

The hospital you were born in is the only building you leave without entering.

 

Sep 042018
 

We are now officially in the longest bull market in history. Hurray! ūüėÄ Generally speaking a bull market begins when the market rises 20% from the end of a bear market.¬†The last low set by the benchmark S&P 500 index in the U.S. was on March 9, 2009. It‚Äôs been 3,465 days of fairly steady growth since then, with the stock index climbing by more than 320% over that period. The previous record bull run was set between Oct. 1990 and March 2000 where the S&P 500 gained¬†418% between those 9.5 years!

Liquid’s Financial Update

*Total Income: = $6,000

  • Full time job = $3000
  • Part time job =¬†$1100
  • Freelance = $500
  • Dividends =¬†$900
  • Interest = $500
*Total Spending: = $3,500
  • Food = $300
  • Housing = $1200
  • Utilities = $100
  • Miscellaneous =¬†$1000
  • Additional Debt Interest = $900

*Net Worth: (őĒMoM)

  • Assets:¬†= $1,238,600 total¬†(+9,700)
  • Cash = $11,200¬†(-400)
  • Canadian¬†stocks¬†= $177,800¬†(+4800)
  • U.S. stocks = $126,000¬†(+4500)
  • U.K. stocks = $21,600¬†(-300)
  • Retirement = $115,800¬†(+800)
  • Mortgage Funds = $33,900¬†(0)
  • P2P Lending = $32,300¬†(+300)
  • Home = $275,000
  • Farms = $445,000
  • Debts: =¬†$426,400 total¬†(-3,600)
  • Mortgage = $191,600 (-400)
  • Farm Loans = $181,900¬†(-500)
  • Margin Loans = $49,900 (-200)
  • TD Line of Credit = $0¬†(-1500)
  • CIBC Line of Credit = $3,000¬†(-1000)

*Total Net Worth = $812,200 (+$13,300 / +1.7%)
All numbers are in $CDN. 

Continue reading »

Aug 072018
 

Apple recently became the first US company to surpass $1 trillion in market value, wowzers! ūüėÄ It’s hard to imagine that merely 2 decades ago the company was on the verge of bankruptcy. But then Steve Jobs came back as CEO and turned the whole company around. I didn’t have the foresight to buy Apple stocks in 1998 when it was less than $1/share. Amazon and Alphabet (Google) shares are probably next in line to breach the trillion dollar milestone.

We’re living in a digital world where technology companies today have become like utility companies in the past. I have owned all 3 for many years now and will continue to add more tech stocks to my portfolio over time. A devastating tech crash like in 2000 shouldn’t happen again because the big companies today actually have sales and profits to backup their market value. ūüôā The only major risk, albeit not very likely, is a prolonged, global internet blackout or some other technological black swan event.

As North American stock markets climbed in July so did my investments.

Liquid’s Financial Update

*Total Income: = $7,500

  • Full time job = $4000
  • Part time job =¬†$1100
  • Freelance = $600
  • Dividends =¬†$900
  • Interest = $900
*Total Spending: = $4,300
  • Food = $300
  • Housing = $1200
  • Utilities = $100
  • Miscellaneous =¬†$1800
  • Additional Debt Interest = $900

*Net Worth: (őĒMoM)

  • Assets:¬†= $1,228,900 total¬†(+6,400)
  • Cash = $11,600¬†(+1100)
  • Canadian¬†stocks¬†= $173,000¬†(-600)
  • U.S. stocks = $121,500¬†(+3700)
  • U.K. stocks = $21,900¬†(-300)
  • Retirement = $115,000¬†(+1800)
  • Mortgage Funds = $33,900¬†(+600)
  • P2P Lending = $32,000¬†(+100)
  • Home = $275,000
  • Farms = $445,000
  • Debts: =¬†$430,000 total¬†(-3,400)
  • Mortgage = $192,000 (-500)
  • Farm Loans = $182,400¬†(-500)
  • Margin Loans = $50,100 (-900)
  • TD Line of Credit = $1,500¬†(-500)
  • CIBC Line of Credit = $4,000¬†(-1000)

*Total Net Worth = $798,900 (+$9,800 / +1.2%)
All numbers are in $CDN. 

 

Continue reading »