Liquid net worth – July through September
It seems things have gotten worse in the third quarter of 2022.
Stocks continue to fall in general and because I am leveraged my investments are down more than the broad-based market.
My liquid net worth dropped by $64,000 and is now back to where it was after Q1 of 2021.
To take advantage of more reasonably priced companies I bought over $100,000 worth of new stocks this quarter.
Of course I didn’t have any savings so I borrowed the money from my HELOC and margin account to do so.
As a result, both my assets and liabilities increased.
Here is how my liquid portfolio stands on Sept 30, 2022.
Cash = $14,000 (+$2,000)
Canadian stocks & bonds = $404,000 (+18,000)
US stocks & bonds = $345,000 (+79,000)
Retirement = $245,000 (-14,000)
P2P lending = $13,000 (-7,000)
Mortgage funds = $22,000 (-2,000)
Total = $1,043,000
Margin loan = $143,000 (+20,000)
HELOC = $180,000 (+120,000)
Total = $323,000
Liquid Net Worth = $720,000 (-$64,000) -8%
All numbers are rounded to the nearest $1,000 and in $CDN at 0.74/USD
Overall it wasn’t as bad as the drop from Q2, but it’s still a bummer seeing the stocks I own fall more and more.
Pretty much all the new stocks I’ve added to my portfolio in the previous quarter are now lower, lol.
On the bright side valuations are looking attractive for many companies now such as Amazon, Google, and Microsoft.
By this time next year these stocks should most likely be worth a lot more than today. 😀
One change I made to my portfolio in Q3 was to withdrawal some cash from my peer to peer lending account.
I’m basically using this money for living expenses.
I expect the economy to get worse in the short term so I don’t expect a lot of opportunities in lending to small business in 2023.
My plan for Q4
Going in to the last quarter of the year I’ll transfer assets from my RRSP to a new RRIF account.
This will make withdrawing cash more easy.
I am also continuing to buy stocks on weakness.
The S&P 500 index is currently at 4,000 points and some analysts believe the bottom of the market will be 3,200.
For every 200 points the S&P 500 drops from now I plan to invest another $20,000 into the markets mostly by selling and getting assigned put options.
However as mentioned in my latest video December could be a pivotal moment for the stock market with a lot of warning signs.
And I would be very cautious about buying any new stocks right now.
Random Useless Fact:
The longer you age cheddar cheese the more sharp it becomes.