…..at picking stocks.
Seriously, I appear to be pretty bad at this. For the month of May, I made back a lot on some of the losses for the year, but my few value stock picks really tanked, dragging me down. I mean -$4,387 (or -17.3% down)! I ended up 1.26% for the month of June, primarily due to the good performance of my index funds. Still down 1.9% for the year, not counting what I have put into the accounts for the last 5 months. Still, I guess I’m buying stuff on sale, so I have that going for me.
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 1.7% up here, after my monthly inputs into the various accounts. S&P500, Small Cap and REITS were up, Bonds were OK, and International was down. Remember that International did well earlier in the year, so it balances out. Another reason for asset allocation. Note that these returns include reinvesting dividends.
My 401K/Deferred account at work was up only 1.1% for May (same as April). Again, I’m gaining back some of what was lost at the beginning of the year, and buying stuff on sale.
Dividend Income Account: Allocation:
- 25% Dividend Stocks
- 25% REITs
- 50% Bond Index Funds
Another bright spot, up 1.9% for the month (including dividends). My stocks in this account didn’t do as well in May, but the REITs did, and the bonds were OK. I think part of this was the major jump up of my stocks in April.
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
Again, major disappointment in the stocks. Overall, the account was down -6.8%. The two index funds did OK, but the stocks just drove it down. I continue to see evidence that I am not a good stock picker (as most folks in the FIRE community can attest to). If I don’t see a major turnaround in fortunes by the end of the year, I’ll just sell my stock picks and go to index mutual fund investing (like so many other folks). Again, this is more of a “fun money” account where I experiment.
The allocations are not too much “out of whack” so I don’t intend to rebalance until July (unless something major happens).
How did you do in May?
Mr. 39 Months