Investment update for Sep 1, 2018

Things went well again, with another month of gains which pushed me further into the black for 2018. Still have some ground to makeup after the Feb/Mar meltdown, but its trending well. I am now up 2.24% for the year, with a 1.68% bump in August. An old investment saying was “sell in May and go away!” where you sell everything on Memorial Day (late May) and walk away till Labor Day (Sep). If you did this in 2018, you lost out on some significant gains (about 4% for those 3 months or the equivalent of 15.7% annual). Stick with the plan!

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

I ended up being about 1.6% up here for August, so they have continued steady increases for a while now. US Small caps continued to surge, and S&P500 and REITS did well. Bonds gained a little and International got hit. See my July post on this to look how each segment did for the first half of the year. Note that these returns include reinvesting dividends.

My 401K/Deferred account at work was up 1.7% for August, with the same general results on each segment. Remember that this account doesn’t have REITs, so it benefits more than above when REITs drop (but doesn’t do as well when REITs surge).

Dividend Income Account: Allocation:

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

This account was up 2.2%, so up a bit (in July it dropped -1.6%). For the year, it is a little down, even counting in the dividends. I think this is primarily due to drops in bond index funds. Overall, it continues sending me dividends, but not growing much.

Value Investing Account: Allocation (remember I refocused this at the beginning of February):

  • 40% in individual value stocks I picked myself (2 each, 20% for each) – SBS and GILD
  • 20% USAA Market Index (my brokerage is USAA)
  • 40% in Vanguard Value Index fund

My losing streak starts back up again here, primarily due to my value stock picks. The leader, Cia Saneamento, suffers from the problems that all the international stock funds have (see above). My other value stock, Gilead, was down -2.7%. Meanwhile, my two mutual funds were both up (average of 2.7%). This continues to show me that I am not a good stock picker.

Again, another up month. Let’s hope we can keep this momentum going for the rest of the year, so we can rescue this one.


How did you do in August?


Mr. 39 Months

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