Investment Update Nov 2019

Only 8 months to go!

It looks like the US market is starting to kick back I again, after spending the summer “treading water.” While the trade issues with China haven’t been worked out entirely yet, the earnings coming back for most of the companies are good, and the general thought is that we won’t be sliding into recession any time soon. To top it off, the Fed just dropped the rates again, so they are also doing their part to keep the economy humming. Unemployment is very low, so folks have jobs, their trading up in their jobs, and they are spending. Overall, it looks like the market will sail through the year in good shape!

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.

International did well (+3.4%) while the S&P 500 and Small caps were up about 2% each. Even Bonds and REITs were  up (not as much as stocks, however). Second month in a row that International has beaten the pack – so further proof that it is good to diversify. Overall, my retirement accounts were up 1.7% for the month.

My dividend account allocation is:

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

My individual stocks and REITs were mixed (Chevron was down -2.1% and Cisco was down -3.8%). What was interesting was that I wanted to buy another stock, and decided to follow the old “High yield Dow 30” strategy, where you rank the Dow 30 by their yield, and purchase the ones with the higher yields. The assumption there is the stock price is low and might be undervalued – so pick it up now. You can get a good dividend yield, and the stock might bounce. Well I bought Dow at the beginning of October with my dividends, about 80 shared, and its up 12.4% in just one month! Holy cow! I am assuming that it is just returning to its normal level, so I don’t plan to get too excited. I will probably buy another 20 shares to get me to 100 total (I’m anal retetentive that way). A nice little success story.

The “fun money” account is primarily Value and extended market, and was up about 1%. I continue to invest in this one regularly each month, with leftover funds. My attempt at stock/mutual fund picking – never a strong suit for me – appears to bear out again, as I have invested in the PAWZ ETF for pet stores, and its down again. Ah well, I will ride it for a while, but won’t add anything else to it.

For October, I was up 1.50% overall, and I’m up 16.55% for the year. Continuing to plow along as I approach that magical FI moment.

Hope your October was good, and not too scary!

Mr. 39 Months

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