Talk about “stay away from May” and ignoring the market! Actually I think the phrase is “Sell in May and go away” and reflects the idea that the period Nov-April has significantly stronger stock market growth than other months. I guess it has a small point. If you sold the S&P 500 on May 1, it was at $2,923.73. At the time of this writing, its at $2,957.15 – only up 1.14% in 2 months.
Still, this smacks a great deal of market timing, and there is no guarantee (either way) that the market will stay frozen from July 1 – Oct 31. We will see. For me, June was a tremendous “up” month, and we are back to pushing new records in the US market. I’ll keep my skin in the game and my money on the table, and see what comes up. For the year, I am up 13.0% for the year, and 3.93% for the month of June alone.
Only 12 Months to go to FI! One year left!
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
For the month, I am up about +4.4%, erasing all the negative of May. The rally was widely based, with every asset class going up somewhat. The items in my allocation that help to even out the stock swings (REITS and bonds) were up, but not as much as the stocks. They did what they were supposed to do, and continue to “balance out” the portfolio
- S&P500: +7.0%
- Small Cap: +7.0%
- International: +5.8%
- Bonds: +1.2%
- REITs: +1.7%
My 401K/Deferred account at work is up a similar amount, and came in at around +4.4%.
Dividend Income Account: Allocation:
- 25% Dividend Stocks
- 25% REITs
- 50% Bond Index Funds
This is up 1.2%, and the dividend stocks are what really drove it up (Chevron rose 9.3% alone). My individual REITs suffered, which drove down the overall performance (as did the 1.1% growth in my bonds, which are 50% of the overall allocation. I think I’ll do some more in-depth study of the dividend portfolio in a later article this month – to see if I’ve learned enough to move on.
Value Investing Account: My value investing portfolio is up around 7.2% for June, erasing the down month I had for May. I found a new ETF I want to pursue, aimed at pet owners and companies that support them. Its sticker symbol (no kidding) is PAWZ. I bought 25 shares in June, and its up 1.9%. I figure with so many people having pets instead of kids, this could be lucrative. I’ll probably buy some more and see how it goes.
Again, I’m up 13.0% for the year, which equals about $126K in returns – for just the first six months. Its more than Mrs. 39 Months and I made in salary for the first six months, which is a good sign. We are on track and moving forward – as I hope all of you are.
Mr. 39 Months