Time flies when you are having fun….or so I heard. Well in our case time flies when we are doing our finances, and now, another year has passed, and it’s already the end of December, and we have to see where we stand from the last year, and… too much “and”…
We will first do the update of the portfolio, taking into consideration the last quarter of the year (2021 that is) and then we will use our Financial Retrospective to see how bright the last year was. To have better access to the article, use the provided link, as both articles will be published at the same time: 2021 Financial Retrospective.
Overlook on December 2021 Portfolio
The last 3 months were quite calm, with no major expenses (only the Christmas gifts, which I will preferer not to talk about). The inflation is currently rising in Romania and this can be seen also in the prices vs the period of last year. I am looking to modify the contract I have for the energy provider, and let’s say I am not that happy.
For the last quarter of the year, I used the exchange price of 4.37 for USDRON and 4.94 for EURRON, with an increase of 26 bans (Romanian cents) for the USD, that’s why we have so many differences. I did consider these differences as in the financial retrospective we calculate the start of the year and the end of the year with a single price.
- FOREX – I have changed the previous robot I was working with, on one that I worked on and I know how he trades. Things are getting to look a bit better, and the great loss is because I had to close some of the transactions I was carrying since March 2021. Hope that next year my drawdown will be 0 and bit by bit the robot will pick up the pace.
- Crypto – after the last 6 months started to fall a bit. The price of BTC went from 64K to 46K. In this case, I only bought multiple positions, doing CDA on BTC, BNB, and ETH. There is still growth in the portfolio, but the total was 1700USD one month ago.
- Mutual funds – Because of the need to rebalance the categories and I stopped investing in Mutual Funds. The performance was not at all that great, with only a 1% gain in the last period.
- P2P – steady as always. Due to the fact that the investment is in EUR and the portfolio is in USD, we see a bigger gain than it usually is (around 10EUR per month), The rise is as expected, totaling another 4%.
- Stocks Internal Market – I did some more deposits to profit from a correction on the internal market. In terms of profits, they were not that much, but I expect to see the increase next year in March. Until then, we have a 4% organic growth
- Stocks External Market – Same as internal, we have the usual monthly deposits and corrections on the market. unfortunately, the small increase is due to our PIE (link here), which we created last year, and especially to Lufthansa which seems to eat all the profits, despite multiple CDAs and Rebalancing.
- Bonds – as expected maintained the direction of not taking any gains. As we are talking about investments with maturity in 2-5 years, it is normal. So that 18% increase is purely because of the different price of USD from the last period.
- ETFs – Performed a bit better than in the last period, but still not as much as I would have expected. There are still some problems there, especially with the Green ETFs we chose, but in the long run, it will be fine
|Asset||Last Period||Deposit||End Period||Growth||Growth%||Increase%|
|Asset||Last Period||Deposit||End Period||Increase %|
What do we have to rebalance?
According to this period investments, we have more than needed Stocks and ETFs, too few Bonds, and not nearly enough Gold. For the next period, we should see some investments inside the commodities category (and with this rising inflation we should buy some) and Bonds (same as last period).
|Asset Class||Desired percentage||Assets (USD)||Current Percentage||Desired Amount (USD)||Difference|
|Forex & Crypto||20%||2.112$||17.40%||2.128$||15|
|Stocks & ETFs||25%||4.684$||42.00%||2.659$||-2.024|
|Bonds & M.F.||30%||2.339$||24.92%||3.191$||852|
I thought about it, and I am not ready to do a sell-off of my portfolio and I prefer to compensate by investing. I did have some money to contribute to gold, but I preferred to pay off some debts.
Evolution of the portfolio during the times
For this month, the graphic is still on the rise, which is the best when looking at general direction. We have a smaller increase and gain, which is fair, but we finally reached over 10K in the portfolio! I will not talk any more now, as we will have also the financial retrospective done soon!
Thank you a lot everyone and see you next time!
Disclaimer: I am not a financial consultant! All the information you find here are my decision, I have taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money and you can have losses.