Markets make a big comeback in January
December 2018 was a terrible time to be long in the stock market. If it weren’t for the brief rally on the last week of the month, the S&P 500 and Dow Jones would have had their worst December since the Great Depression. But suddenly the bulls took over in the following month.
All in all, 2018 was the worst for stocks in 10 years.
Panicked selling at the end of December would have caused someone to miss out on the amazing gains in the first month of this year. It just goes to show that investors should make decisions based on long term planning, and not on emotions.
I didn’t make any big financial moves in January. I deposited $10,000 from my savings into my retirement account but haven’t bought anything with that money yet.
Liquid’s Financial Update
*Side Incomes: = $3,400
- Part time job =$600
- Freelance = $500
- Dividends =$1000
- Interest = $700
*Discretionary Spending: = $2,000
- Food = $300
- Miscellaneous = $900
- Interest expense = $1400
*Net Worth: (ΔMoM)
- Assets: = $1,321,300 total (+110,000)
- Cash = $11,800 (-8600)
- Canadian stocks = $166,200 (+10400)
- U.S. stocks = $116,900 (+4200)
- U.K. stocks = $20,600 (+1200)
- Retirement = $125,300 (+10400)
- Mortgage Funds = $34,600 (+100)
- P2P Lending = $33,900 (+300)
- Home = $367,000 (+92,000) (New 2019 assessed land value)
- Farms = $445,000
- Debts: = $417,500 total (-1300)
- Mortgage = $189,500 (-400)
- Farm Loans = $179,600 (-400)
- Margin Loans = $48,400 (-500)
*Total Net Worth = $903,800 (+$111,300 / +14.0%)
All numbers are in $CDN at 0.74/USD
Real Estate Value Adjustment
In my previous net worth update I received some feedback in the comments about how other people value their homes. I bought my apartment 10 years ago. My old method of purchase price + annual inflation doesn’t accurately depict the market value of my apartment anymore. So I’ve decided to use the government assessed land value of my property, which gets updated in January every year. Most recently for 2019 my home’s land value is $367,000 according to BC assessment. So that’s what I’ll do every year from now on. 🙂
After updating my property’s value to better reflect current market conditions, I’m quite pleased to find out that my net worth is now $903K. I’m looking forward to reaching 7 figures soon. 😀
Even with the extra $92,000 gain to my home, it still falls a bit short of my most valuable asset – farmland. 🙂 Here’s a relative comparison of my current holdings by market value.
Like a true Canadian, my total real estate exposure come in at over 50% of all assets I own. Many Canadians and Australians love real estate for some reason. Luckily the value of my home has only been going up since I bought it in 2009. But who knows. Maybe things will be different next year.
Random Useless Fact:
I set my alarm earlier than necessary so I would have enough time to stay in bed and think about how much I don’t want to wake up so early.