Hello dear followers, it is that time of the quarterly period. For those of you who don’t follow my Twitter (@FIinRo), it would be nice to reach out. grow the community a bit. Now let’s see how we stand in terms of growth.
The last period was very busy at work and the next two months look to be even busier, not to mention we are 1 week into our COVID-19 isolation. We have an easy variant, no problems, just the loss of taste. We were all vaccinated, close to our 6 month period, waiting for the 3rd shot….and to avoid further polemics on this topic I will not go into the subject more.
We are all waiting for a holiday, hope it will come soon!
For the current Portfolio Update, we will use 4.88 for EURRON conversion and 4.1 for USDRON.
Overlook on Portfolio Update September 2021
Last time we were looking at an increase in salary level because my wife was having a new job after the reconversion. Well, during the 3 months she changed the job again (starting soon), to a better one, bringing it for us on the same salary level. This was very good and a very good boost of morale.
Unfortunately, inflation in Romania starts to rise (a lot) and the bills are becoming higher and higher. Not to mention the Christmas period is arriving, so I expect we will peak into some expenses. Another thing that is more clear to me is that I have to rethink a bit our budget and probably it will be for the end of this year with applicability next year.
Following the series of portfolio rebalancing, I have replaced the usual graphics with the one that is subjective to the whole portfolio distribution, for the protection against the inflation or crumble of an asset. For the ones who didn’t have time to check the series, here is the link (enjoy it and leave a comment if you feel it’s useful- the link provided is for the last article, there are 2 more presents which you will find the links inside).
Let’s get back to the usual numbers, then we will have a new section inside this article, that I think will show us how the portfolio is evolving.
- FOREX category is not worth talking about. The trades I have had open since March are starting to close. I plan to close them in the following period as they are gaining a lot of spread that is becoming costly. I plan in the next period to add more funds and put the EA I worked on to see how it behaves on live. Also, after closing all the trades I kind of planning to change the broker. Maybe we will have an article about it also. Until then. the period brings a -214.15USD and a loss of -32%.
- Crypto, is having a good rally. The invested free crypto money/cash in doing CDA(cost dollar average) on ETH, BTC, and BNB is starting to pay off. We are talking about a 300.3 USD gain (close of the last period loss) and a 32% increase.
- Mutual funds. In the last period, we liquidated two of the subtractions as I was not very happy with the gains. As the plan was to invest in them for the long term and we are still young, I saw no problem of choosing a bit more risky investments (mutual funds oriented on stocks instead of bonds). The gains accelerated a bit more and we also got a rally in stocks that brought us 155.27USD and a 9% growth.
- P2P category is steady so no big surprises there. I still get a lot of emails from Mintos, almost begging me to do a rebalance of the portfolio and check the new investment strategies. Hopefully, I will have some time to do it soon. Until then let’s add a 2% gain and 25.95USD in the bank.
- Stocks Internal Market is up with again, but with a 550USD. Frankly speaking, I didn’t believe it myself, and I had to check the balance multiple time (I just checked it again). This gain is close to crypto 30% growth, in 3 months, without risky investments.
- Stocks External Market, with the automatic monthly contributions we have an of -4% and a loss of -22.11USD (plus dividends). This is a shrink in the US market that affects some ETFs + the investment in the Travel Stocks that don’t perform that well due to pandemics.
- Bonds are the new kid in the block. Started with a 300USD balance, mostly piking some ETFs that invest in bonds. Check the page later for an article about the componence of this asset.
- ETF category did not perform that awesome but still has a 6.28USD in profits and a 1% growth.
|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.
|Asset Class||Desired percentage||Assets (USD)||Current Percentage||Desired Amount (USD)||Difference|
|Forex & Crypto||20%||1.716||17.40%||1973||257|
|Stocks & ETFs||25%||4.144$||42.00%||2467||-1677|
|Bonds & M.F.||30%||2.459$||24.92%||2960||501|
So, if we would do a sell-off rebalance, we should sell 1677USD worth of stocks and invest them in Gold, Bonds and P2P. Some should go to Forex also, but I think Crypto will pick up the pace again.
Evolution of the portfolio during the times
This is This is yet another section I want to add to this quarterly report. The evolution of the portfolio will track the growth of the portfolio and the return every 3 months.
Following the picture, we can see the blue line jumping forward, as our portfolio increases each period. The red line is the increase (returns+ deposits) for each period. We can see that this line is always positive, so even if we had a negative return (green line) we are always above 0, thanks to the deposits.
If we follow the green line, we have some periods with negative returns, but now, as we take into consideration a better structure of the portfolio, I hope to see less and less of them.
This is the real deal, the portfolio I have been working on for the past 4 years. It is not much and definitely, we should start to contribute more. As I plan a re-budget for next year, hope to find some spare cash to invest even more.
Now, it’s time to make this post super attractive for the SEO algorithms and if you enjoy our blog, do not hesitate to subscribe and share. And I will push the publish button
Thank you a lot everyone and see you next time!