I’ll talk mainly about two things on this net-worth update: Firstly, a networth update since last quarter to show my readers how I’ve fared over the last three months and secondly my current investment sentiment and a few of my current holdings.
So, here’s the chart showing the entire picture. Year to date I’ve added about $290K to our net worth, which currently stands at $1.94 MM. The year to date figure reported back in July net worth update was $161K. So, I’ve added about $130K in the last quarter and this addition mainly consists of my salary, rental income from what used to be our primary home and a 2018 year end bonus. I must also report that pretty much all of my networth change in 2018 has been from earnings and there hasn’t been much addition due to growth as I continue to be pessimistic about the stock market’s future returns.
As a result my portfolio is very conservative as I value capital preservation more than asset growth at this moment. I’ve been patient and not let the recent uptick in stock market volatility pull me into it. You can see how my Oct 2018 portfolio has small grey components (stock/equity investments) and large blue components (short term reserves, cash and CDs).
My sentiment on the stock market has been bearish since the start of the year and although small, I’ve made some bearish bets recently. I’ve had both losers and winners and here they are:
- Feb 08 bought TZA at $13.08 – Mar 22 sold TZA at $11.06 for a loss of -15.44 %
- Apr 04 sold short TQQQ at $132.15 – Jul 26 covered at $65.935 ($197.8 prior to 1:3 split) for a loss of – 49.67%. Ouch.
- Aug 30 bought CBT Jan 18 2019 $65 PUT for $3.49 – Oct 12 sold the option contracts for $12.00 for a gain of 243.8%
- Nov 01 bought TQQQ Nov 02 ’18 $55 PUT for $2.00 – Nov 02 sold the option contracts for $3.2 for a gain of 60%
- Finally I have a couple of bearish leaps that I continue to hold
- Aug 17 bought MT Jan 17 2020 $20 PUT at $1.3 per contract
- Oct 23 bought VRTX Jan 17 2020 $175 PUT at $23.5 per contract
I must disclose that the total $ value of my brokerage account where I hold only bearish bets or trade to take advantage of volatility is < $20K. I will update my views as my sentiment changes.
Lastly, here’s a snapshot of my 401(k) account and although I have missed on the gains from Feb to Sept, I’ve also passed unscathed in the bloody month of October. From my last net worth update in July 2018, my 401(k) has gone from $716K to $722K at the end of Oct. The money is parked in a conservative short term reserve that yields about ~2%.
Thank you for reading and your interest in my financial independence blog. Please let me have any comments or better yet any investment/trade ideas if you want to share.