Well, that hurt a little! As with most of us in the US, the markets were not kind to us in February. I thought we’d have a dip and then push back up a little before the end of the month, but it went down a lot at the end as well. I lost about $38.3K (3.8% of invested assets) and dropped back below the $1M mark for assets, right as I hit it in January. Sad face!
The S&P 500 benchmark dropped 3.9% in February, so I guess I should consider myself lucky that I didn’t do as bad. I had hoped that with my larger % of bonds (30%) and REITS (17.5%) in my retirement accounts, it would buffer it a bit, but that didn’t work out. Let’s break it down.
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
They all ended up losing money, but the big losers were REITs and International. Bonds actually didn’t lose too much, so they helped offset some of the losses. For REITs, there was a broad market selloff in February, and Mall REITs really tanked (down 23%). Though many earnings reports beat analyst estimates, the potential for a pending rate hike really hurt them.
Dividend Income Account: Allocation:
- 25% Dividend Stocks
- 25% REITs
- 50% Bond Index Funds
Some of my stocks went up her (Cisco, iShares) and the bonds only dropped a little. Still the REITs hurt it. What’s interesting is that, while I’m down 3.8% overall, this account is only down 3.4% – and the dividends for the holders actually were raised for 2 of them.
Value Investing Account: Allocation (remember I refocused this at the beginning of February):
- 60% in individual value stocks I picked myself (3 each, 20% for each)
- 40% in Vanguard Value Index fund
This was my worst performing group, dropping 5.3% for February. One of my picks (SBS) was up about 1.6%, but the others drove it down. Again, this is more of a “fun money” account where I experiment. It keeps showing me that I’m not a good stock picker.
So after losing a$38K in one month, what am I going to do about it? Not much.
I have an allocation strategy and a set amount I invest on a monthly basis. I’m going to stick with my plan, and revisit every 6 months.
How did February treat you?
Mr. 39 Months