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. 🙂

Liquid’s Financial Update

*Side Incomes: = $3,400

• Part time job = $900
• Freelance = $1200
• Dividends = $900
• Interest = $600

• Food = $300
• Miscellaneous = $500
• Interest expense = $1200

*Net Worth: (ΔMoM)

• 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.

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Random Useless Fact:

2018 is passing by quickly. We are already in the final quarter. 🙂 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. 🙂

A stock market dip in September is normal – perhaps 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

• Food = $300
• Miscellaneous = $500
• Additional Interest = $900

*Net Worth: (ΔMoM)

• 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. 🙂

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Random Useless Fact:

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

May was another spectacular month for the stock market! I managed to earn money from 6 different sources over the month, combined to make over $10,000 in after tax income. Most of this income came from my farmland and cryptocurrency investment. More on this further in the post. I didn’t invest in new stocks in May. But my portfolio continues to climb thanks to my position in high quality stocks. 🙂

I also successfully renewed my mortgage in May with a different lender. I have combined my old mortgage and home equity LOC into a single mortgage balance with an overall cheaper rate. It pays to shop around.

Liquid’s Financial Update

*Total Income: = $14,900

• Full time job = $4,000
• Part time job = $700
• Sold Cryptocurrencies = $4,200
• Dividends = $700
• Interest = $600
• Rent = $4,700

• Food = $300
• Housing = $1100
• Utilities = $100
• Miscellaneous = $700
• Auto Insurance = $1,500
• Additional Debt Interest = $900

*Net Worth: (ΔMoM)

• Assets: = $1,205,000 total (+18,400)
• Cash = $12,500 (+4800)
• Canadian stocks = $175,100 (+4900)
• U.S. stocks = $119,500 (+5700)
• U.K. stocks = $22,400 (+400)
• Retirement = $91,300 (+2200)
• Mortgage Funds = $32,600 (+100)
• P2P Lending = $31,600 (+300)
• Home = $275,000
• Farms = $445,000

• Debts: = $435,900 total (-8,300)
• Mortgage = $192,500 (+13500)
• Farm Loans = $183,400 (-500)
• Margin Loans = $51,000 (-1000)
• TD Line of Credit = $3,000 (-1000)
• CIBC Line of Credit = $6,000 (-4500)
• HELOC = $0 (-14800)

*Total Net Worth = $769,100 (+$26,700 / +3.6%)
All numbers above are in $CDN. 

Cryptocurrency Update

I have decided the sell the remaining cryptocurrency I have with QuadrigaCX. The reason is because the crypto market is not as exciting as it once was. Last month Bitcoin’s price dropped below $8,000 hitting a 35 day low. The mainstream isn’t talking about it anymore. I’ve made some decent profit from getting into Bitcoin and Ethereum about a year ago, but I don’t want to push my luck. So I have sold all of my holdings. Here’s what my account balance looks like today. Only trace amounts remain.

I didn’t make a large fortune in the crypto market like some other people, but I’m happy with my gains. 🙂 Maybe I will return to cryptocurrencies in the future so I will not close my QCX account. But for now I’d like to use my resources to invest in other asset types.

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Random Useless Fact: