In today’s post I’ll share my finances and investment performance over the last 3 months. 🙂
My liquid net worth does not include my home or rental properties.
My liquid net worth progress – April to June
It has been an amazing quarter for most asset classes. The TSX hit 20,000 points for the first time ever. Here’s a summary of my liquid net worth changes.
Cash = $22,000 (+$1,000)
Canadian stocks & bonds = $349,000 (+40,000)
US stocks & bonds = $217,000 (+8,000)
Retirement = $225,000 (+5,000)
P2P lending = $26,000
Mortgage funds = $44,000 (+2,000)
Total = $883,000
Margin loan = $117,000 (-5000)
Total = $117,000
Liquid Net Worth = $766,000 (+$61,000) + 8.7%
All numbers are rounded to the nearest $1,000 and in $CDN at 0.81/USD
Half way through the year
My liquid net worth has grown by $120,000 so far this year. Wow. 🙂
My Interactive Brokers portfolio has returned 28% year to date.
For context, the Canadian stock market index TSX Composite is up about 18%.
Inflation played a major role in my portfolio’s outperformance. I’ve previously blogged about how I have hedged against rising commodity and other hard asset prices in 2021. I’ve also made videos on the topic.
It looks like my actions are paying off!
The stock market used to be confusing for me. But now it makes cents. 😀
*SPXTR = S&P 500 total return index
*EFA = MSCI developed market index (Excludes US and Canada)
*VT = Vanguard total world stock index
Asset breakdown, events, and analysis
It’s incredible to see almost $900,000 of financial assets in my portfolio. I hope it will become $1 million by the end 2021.
All my investments continue to grow in value except for my peer to peer lending portfolio through Lending Loop. There were some write offs in May and the overall account was flat overall for the quarter, which is a bummer. I guess you can’t win them all. If I see other opportunities I will consider pulling some cash out of Lending Loop to fund a more lucrative investment.
My MICs have been surprisingly resilient throughout the last year. I thought low interest rates and mortgage payment deferrals would hurt these fixed income investments, but the mortgage funds (MICs) that I hold have all done relatively well, and at near all times highs.
Here’s a rough look at where my financial assets are held.
In last quarter’s update I predicted we’re going to see higher asset prices in Q2, and higher inflation in goods and services.
For the third quarter I expect prices to level off. I think most of the stock market growth for the year has happened already.
But a major factor that can influence how stocks behave is the fixed income market. If bond yields decline, it will push more investors into the stock market and continue to drive prices up.
Anything is possible short term, but it’s also mostly noise in the short term. At the end of the day investors should be focused on buying great assets at relatively cheap prices, and plan to hold them for a long time. 🙂
Random Useless Fact: