Investment Update Dec 2019

Only 7 months to go!

US Markets continue to drive forward at an epic pace, making 2019 once of the best years on record for stocks. For those market timers who jumped out of the market at the end of December’s larger drop, they’ve probably missed out on some strong returns. It once again goes to show that the buy and hold strategy of “steady as she goes” will probably win out in the end. When the next downturn happens – and it will – make sure you keep your money in the market, keep your allocation, and keep investing!

As you know, the allocation for my retirement accounts (IRAs, 401K, etc) is pretty much index funds, spread out between the  S&P 500, small-cap, international, REITs and bonds.

Retirement Accounts: Remember, my allocation for these is:

  • 30% Bond Index Fund
  • 17.5% S&P500 Index Fund
  • 17.5% International Index Fund
  • 17.5% Small Cap Index Fund
  • 17.5% REIT Index Fund

My 401K doesn’t have REIT option, so its just 25% for each.

S&P was up about +3.6%, Small cap +4.5%, and International +1.1%. Real Estate and Bonds were down about-0.3%, so they didn’t hurt much, but also didn’t help. Still, a very strong environment, and my retirement accounts were up about 1.8% all total, for the month.

My dividend account allocation is:

  • 25% Dividend Stocks
  • 25% REITs
  • 50% Bond Index Funds

This account got smacked hard, as it is heavily invested in Bonds and REITs, the two categories that got hurt last month. Several of my dividend stocks did poorly as well (Cisco was down -4.6%). Its almost time for year-end dividends to come out as well (some are already paying out) so that may further drive down the stock and REITs.

The “fun money” account did very well, up a little over 4%, after a very strong rally for my PAWZ ETF. Its been suffering for almost six months, but picked November to rally back and almost get to even. Both the Value and Extended Market had strong gains as well.

For November, I’m up 1.62% (after 1.5% in October). For the year, even though I’m 30% Bonds for the most part, I’m up 18.56%. Time to make a few “end of year” moves before time runs out. See my previous link in reference to end of year moves.

Hope your November was good, and everyone was Thankful!

Mr. 39 Months

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