Summary of Financial Market Returns
2017 was a great year for investors, particular for those with long exposure to emerging markets overseas. 🙂 Nearly every asset class experienced positive returns. The best performing one was cryptocurrencies. It grew from a market capitalization of $20 billion to $800 billion in the last 12 months. To put that into perspective that’s about 1% of the global stock market which is valued at roughly $80 trillion.
North American Markets in 2017
- Canadian dollar stronger by 7.0%
(This means more purchasing power and cheaper imports, such as produce from California. Yay!)
- U.S. dollar weaker by 6.6%
(U.S. investments are on sale.)
- The average CAD/USD exchange rate was 0.77
(This may be important for tax filing purposes if you traded U.S. securities.)
- Canadian S&P/TSX stock index total return = 9.1%
(6% from price appreciation + 3.1% from dividends.)
- S&P 500 U.S. stock index total return = 21.8%
(Amazing! But the Nasdaq index which contains technology stocks was up 30%.)
- Canadian Aggregate bond index ETF (ZAG) total return = 3.0%
(Interest rates are still very low.)
Foreign Markets in 2017
The MSCI group contains thousands of stocks from 24 developed markets around the world. Data below courtesy of Yardeni Research.
- Average change across all MSCI countries in 2017 = 17.5%. Up from 8.2% in 2016.
- EMU refers to the European markets specifically.
In December I sold some Bitcoin and Litecoin to pay down some of my debt. I’ve saved up a cash cushion of $10,000 because I intend to pick up some new stocks over the next few weeks.
Liquid’s Financial Update
- Part-Time = $1100
- Freelance = $1200
- Dividends = $900
- Interest = $300
- Trading income = $2,500
- Fun = $500
- Debt Interest = $1300
*Net Worth: (ΔMoM)
- Assets: = $1,158,900 total (+8,200)
- Cash = $10,500 (+2000)
- Canadian stocks = $168,200 (+4000)
- U.S. stocks = $107,000 (+1200)
- U.K. stocks = $21,400 (+400)
- Retirement = $91,300 (+200)
- Mortgage Funds = $32,200 (+200)
- P2P Lending = $22,200 (+200)
- Home = $270,000
- Farms = $436,000
- Debts: = $462,300 total (-6,400)
- Mortgage = $180,600 (-300)
- Farm Loans = $185,800 (-500)
- Margin Loans = $57,500 (-1400)
- TD Line of Credit = $5,500 (-1200)
- CIBC Line of Credit = $18,000 (-3000)
- HELOC = $14,900
*Total Net Worth = $696,600 (+$14,600 / +2.1%)
All numbers above are in $CDN.
My net worth has increased $126K year over year. Not too shabby. 🙂 This gain was mostly thanks to the Canadian and U.S. stock markets reaching record highs.
Many experts suggest to rebalance one’s portfolio once a year to ensure it still matches up with long term goals. Stocks outperformed bonds last year. So here is what my asset allocation currently looks like.
My liquid investment portfolio contains 82% equities, and 18% fixed income, while a year ago it was at 90% and 10% respectively. I have increased my fixed income exposure because I’m closer to retiring. Yay.
As we head into 2018 I plan to reduce my debt while continuing to max out my tax advantaged investment accounts. By the end of the year I aim to be collecting $18,000 in forward dividend and interest income. 🙂 My liquid asset allocation goal is to be somewhere between 75% to 80% equities, and the rest in fixed income.
My 2018 watchlist includes the corporate bond ETF (TSE:ZCM), Parkland Fuel Corp (TSE:PKI), North American Preferred Shares ETF (TSE:XPF), and more Lending Loop loans. 😀
Random Useless Fact
A lot of quality information here!
Interestingly, I was watching a Warren Buffett vid on youtube where he was talking up farmland as an investment so looks like your on to something haha
How have you built your farmland investment over time if you don’t mind me asking?
All the best for 2018!
Just seen your introduction to farmland investing post so you can ignore my question 🙂
Thanks. Everyone has to eat so buying some farmland to hedge against the cost of rising food prices makes sense to me. 🙂
We have 85 acres of farmland in southeast New Brunswick. We do I look for the price we should rent the land.
I’m not sure since I don’t follow the New Brunswick market. It would depend on what you could grow on your farm. If the soil is of high quality and the climate isn’t too cold then you could rent for $100/acre. But if it’s a grain farm then $30/acre may be more appropriate so it really depends. renterra.ca is a service that brings renters and owners together. Maybe it’s worth taking a look there to see if there’s any existing offers in your farm’s area to give you an idea. Or you can contact a local real estate agent that works in southeast New Brunswick and ask for some information.
Very solid month of December I’d say, plus a great summary for your readers of the broader markets, especially the Currency translation changes between US and Canadian. Love it and thanks for sharing.
Thanks. I’m surprised to see the U.S. dollar index has dropped to 92 lately. This means higher inflation for everyone since the price of commodities such as metals and oil are tied to the U.S. dollar. My expenses in 2017 was already a lot higher than the previous year. I hope the cost of living doesn’t increase too much if the U.S. dollar falls further.
Liquied, Thanks for the bigger picture metrics. Interesting stuff and nice job with your holdings. Tom
Fore sure. I think the bigger picture stuff helps put our own portfolios into perspective. 🙂
Great year Liquid! Wish you a prosperous 2018! I did well investment wise too with private mortgages +13% on the entire mortgage portfolio. My business did well and generated some great profits which I reinvested. Overall net worth is up +337K which is great considering we had a 2nd child in June and my wife didn’t work full time this year.
Wow, that’s a third of a million dollars. Nice job. Congrats on the baby and hope you have continued success throughout this year. 🙂
Yes, I wish I was more disciplined with the investing & diversifying my portfolio however things keep moving in a positive direction so I’m happy with that!
Fantastic year! I like how you present your entire portfolio — so far, I’ve only been blogging about my dividend growth stocks. Mmm.. food for thought!
All the best in 2018!
Dividend growths stocks are my favorite. 🙂
Great job Liquid!! We continue to tag team. My bets are you hit the double comma club before me!! 🙂 Though it’s not a race of course!
Of course it’s not a race. 😉 😉 😉