Investment Update Sep 2020 – Back “in the Black!”

Well I’m back from my backpacking, and we are “back” in terms of our investments. Like most folks in our community,  I’ve been riding the slow, steady “up” of the markets for the last four months (May – August), as our finances have crept out of the hole that we fell into during the Feb/Mar crash. As long as you didn’t panic and sell everything, the market typically recovers – even from the crashes of 2000-2002 and 2008-2009. It never pays to panic and sell out. If you are uncomfortable, just adjust your asset allocation to a more conservative position, so you can sleep better at night.

With that said, we are back to a positive 0.8% for the year, even after all the money we have put into the market (we never stopped our regular, monthly contributions). The S&P 500 is up 7.5% for the year – so if we were 100% in the S&P, we’d really be up. However, five stocks are primarily responsible for that jump up (the tech stocks) and I was around for the dot.com bubble, so I don’t feel comfortable putting all my eggs in those 5 company’s baskets. I won’t do as well, but as I said, I will sleep at night.

So our allocation is as follows, as of July 2020:

Retirement Accounts: Remember, my allocation for these is:

  • 20% Bond Index Fund
  • 20.0% S&P500 Index Fund
  • 20.0% International Index Fund
  • 20.0% Small Cap Index Fund
  • 20.0% REIT Index Fund

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

As you would expect, everything was up, though in different amounts.

  • S&P500: 7%
  • Small Cap: 4%
  • International: 3%
  • REITs: 1%
  • Bonds: -16%

My dividend account new allocation (as of Jan 2020) was:

  • 50% Dividend Stocks
  • 50% REITs

The dividend paying stocks varied (some up, some down) but overall the account gained 3% for the month (including dividends).

My value account with Vanguard was up 4.9%, so it was in line with most of the stock gains.

Overall, for July, I was up 3.8%, a nice bump. For the year, I’m at +0.8%. My expectation is a slow growth, probably ending around 3% – 4% for the year.

Hope everyone is healthy and your Sept turns our well!

Mr. 39 Months

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