The Second Longest Bull Market
Happy New Year! 🙂 I hope everyone had a great 2016. It’s somewhat surreal to see an economy that’s still struggling while the stock market has never been stronger. We are currently living in the 2nd longest bull market in American history, recently surpassing the 7 year streak that spanned 1949 to 1956.
2017 could be the year that we finally see a major market correction. But who knows? Maybe stocks will remain resilient and continue to climb for several more years! After all, the longest bull market ever lasted 13 years from 1987 to 2000.
Chart from http://money.cnn.com/
My goal of reaching freedom 35 means I need to be financially independent by 2022. That’s only 5 years from now! Can the markets continue to move higher until then? Well the 13 year bull market run from 1987 to 2000 shows that it’s indeed possible. 🙂 Like many other millennials, I began investing in 2009 by sheer luck, because that was the perfect time to get into the stock market. Maybe I can deleverage at the right time too, Haha. 😀
Future apoplectic haters will probably say, “Well of course he retired early. Any ninny with half a brain could have borrowed $500,000 to buy stocks and other financial assets between 2009 to 2022 and easily become a millionaire.”
And they would be correct. 🙂 But my question is why haven’t I heard of anyone else borrow $500,000 to invest right now? This is currently the best time of our generation to use leverage to potentially double or even triple our investment gains! Surely I can’t be the only one to see the advantage of borrowing money at 2% to buy and hold strong, reliable, blue-chip stocks like utilities and Canadian banks that have been paying 4% or higher dividends for decades, and are also expected to appreciate in value over the next 5 years. Call me crazy, but I want to get rich sooner rather than later, even if it means taking on a bit more risk. 😀
Anyway, December has been another amazing month for the markets. All stock indexes gained, including my new British equities purchased recently. It’s still very early to tell so I’ll continue to hold my U.K. index ETF, and see how it does over the next year or so.
Liquid’s Financial Update
- Part-Time = $700
- Freelance = $900
- Dividends = $700
- Interest = $400
- Fun = $300
- Debt Interest = $1200
*Net Worth: (MoM)
- Assets: = $1,050,000 total (+12,200)
- Cash = $1,800 (-17,700)
- Canadian stocks = $135,100 (+5000)
- U.S. stocks = $83,200 (+3000)
- U.K. stocks = $18,600 (NEW!)
- RRSP = $75,100 (-200)
- Mortgage Funds = $30,200 (+3500)
- SolarShare Bonds = $10,000
- Home = $263,000
- Farms = $433,000
- Debts: = $479,500 total (-2,600)
- Mortgage = $185,500 (-500)
- Farm Loans = $191,800 (-600)
- Margin Loans = $59,000 (-300)
- TD Line of Credit = $16,700 (-800)
- CIBC Line of Credit = $9,500
- HELOC = $17,000 (-400)
*December Total Net Worth = $570,500 (+$14,800 / +2.7%)
All numbers above are in $CDN.
Good golly! What a way to end the year. 🙂 Thanks primarily to stock and farmland appreciation, my net worth has increased on average by over $12,000 per month in 2016. That’s totally dope! I can hardly contain my excitement! 😀 It was a gradual and steady process, but I’ve managed to somehow accumulate $350,000 of financial assets over the last 7 years. I wonder what amazing new serendipity awaits for my finances in 2017. 🙂 I guess we shall see. Good luck to everyone in the new year!
Random Useless Fact:
Stingrays do not use their eyes to hunt for food. Their eyes are above their bodies, but their mouth and nostrils are situated on their underbellies.