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As of November 2023, I’m beginning my month-to-month portfolio replace for FIRE journey. When you haven’t already learn my posts earlier than, I achieved Monetary independence again in late 2020 early 2021 with a portfolio of roughly $1.3m invested in primarily ETFs. This ballooned to $1.7m in the course of the peak of the markets in early 2022 earlier than coming again right down to Earth later in 2022.
This publish might be a part of a month-to-month collection of portfolio updates that summarizes how my portfolio carried out, what trades I executed, what my month-to-month bills have been, and my normal outlook on the economic system/markets. That is under no circumstances monetary recommendation so don’t look take a look at me for sage recommendation. I make silly trades and make even worse losses fairly often.
That is merely the efficiency of my portfolio and the way it has carried out on a month to month foundation.
Month-to-month Highlights
Internet price is close to $1.7m m as of November 2023 Month finish+$0.12m for the monthStayed on the Ritz Carlton Maldives for five nights fully on factors (absolute heaven on Earth)
What’s in my portfolio?
My portfolio is kind of easy and straight ahead. I’ve my holdings primarily unfold out between a number of ETFs, fastened revenue, and varied single title shares.
Mounted Revenue
As a result of rising charges, I’ve additionally allotted a small a part of my portfolio (<5%) to fastened revenue merchandise. I’ve been buying 5.5% yielding treasury payments with a 3-6 month expiry. I presently have about ~$60k invested in a 3-mo T-Invoice that may expire in Dec ME. I plan to purchase one other 3 month T-Invoice upon maturity.
That is assured cash with zero danger which I made a decision to reap the benefits of whereas ready for higher entry factors. Nevertheless, it looks as if this cash most likely would have been higher used simply shopping for the market however that is alternative value I’m keen to sacrifice.
I additionally bought I-Bonds in 2022 on the peak of inflation peak when I-Bonds have been paying 9.5%. The charges have come down considerably since then as inflation itself has come down. I’ll promote my remaining I-Bonds of $20k in December 2023 when they’re eligible for withdrawal.
ETFs
Once more, my main holdings are in a number of ETFs. My main holdings are in VTI, VGT, and VCR. I’ve all the time been a giant proponent of massive tech and have been closely invested within the Nasdaq for over a decade. This has paid off very effectively for me given the huge bull market of the 2010s.
I used to carry extra dividend producing shares as I used to be actually into this kind of investing at a time period. I presently wouldn’t have many dividend particular ETFs as I want progress greater than revenue. This sort of goes in opposition to the ethos of monetary independence however I have the funds for coming in from different sources that I don’t must focus a lot on revenue.
I added to my ETF positions in November as I wished to capitalize on the October dip. This turned out to be fruitful because the markets had a fierce rally in November.
Single title shares
Among the single title shares I personal are the next
These single title shares make up lower than 10% of my complete portfolio. I are likely to not purchase a lot single title shares anymore as there’s no level to tackle pointless dangers once I’m already so diversified with my ETFs.
Actual Property
I presently personal no actual property. I used to personal property within the US however have offered it in 2022 earlier than charges began rising. I’m not a giant fan of actual property. Whereas it undoubtedly generally is a good funding, I don’t suppose it beats investing within the markets. As well as, actual property is very illiquid with excessive transaction prices that few individuals think about.
Lastly, as somebody that travels world wide and doesn’t wish to be tied down to at least one location, actual property doesn’t make sense as managing it from afar creates a bunch of complications. I a lot want to have my cash liquid and within the inventory market.
November 2023 was a month for the bulls. The Fed was dovish for the primary time in the course of the mountain climbing cycle and inflation got here in mild which gave the inexperienced mild to buyers to purchase the dip that shaped in October. Markets ran as much as earlier resistance at a blazing tempo and a few of my ETFs are again in any respect time highs. The markets rally simply as onerous as they crash.
I do suppose price cuts are coming subsequent 12 months and my guess is someplace round 1% can be the quantity until some black swan occasion happens. The market tends to agree because the CME Fed Funds watch additionally signifies the same degree of cuts.
Markets have been off their 2021 all time highs for nearly 2 years now and statistically talking, that is on the upper finish of time between market highs. Ultimately, markets should rally again to their highs even with opposed market situations and it’s not a shock to me that they’re nearly there. I think this can most likely occur both in December or early subsequent 12 months earlier than a pull again. I don’t foresee any main pullbacks in December as seasonality kicks in, buying and selling volumes are lighter, and financial knowledge appears favorable.
There’s nonetheless lots of money sloshing by means of the system and central financial institution injections stay robust all through the previous two years. After all, nothing within the markets occur in accordance with plan, particularly mine. It’s simply as doubtless we may see continued elevated inflation and different points that causes a brand new bear market.
Market Worth of portfolio
Here’s a historical past of my portfolio worth. As you’ll be able to see, it’s moved in keeping with the markets as needs to be the case since most of my holdings are in ETFs that monitor the S&P 500 and the Nasdaq.
Trades executed for the month
I spent November 2023 shopping for the October dip. I scooped up extra shares of my perennial VTI, VGT, and some single title shares. I don’t commerce out and in of shares like I used to so sadly, you gained’t get any good inventory ideas from me!
Purchase 45 shares of VGTBuy 50 shares of VTISell 10 lined calls on VGT with a 470 strike and Dec 17 expirySell 1 lined calls on VGT with a 460 strike and Dec 17 expirySell 12 lined calls on VTI with 230 strike and Dec 17 expiry
I offered lined calls on my holdings like I are likely to do each month or two to generate additional revenue. I wish to promote my calls with a 0.15 to 0.2 delta which is usually conservative sufficient to keep away from being known as however in current months, I’ve needed to roll contracts a number of occasions because the underlying appreciated a lot quicker than anticipated. I generally wish to promote 1 or 2 contracts with a strike nearer to the cash to seize extra premium. I like doing this when the markets have had a big run up, is bumping up in opposition to resistance, and doubtlessly primed for a pull again.
For November, I offered lined calls on my VTI and VGT portfolio which generated roughly $2,900.
Portfolio withdrawals and bills
Withdrawals from my portfolio is a vital a part of the monetary independence ethos. The 4% withdrawal price rule is without doubt one of the predominant ideas of the FIRE motion which I attempt to adhere to. Usually, I want to promote from my portfolio when markets are close to or in any respect time highs to seize, and solely once I really want the money.
For the month of November 2023, I traveled extensively by means of the Maldives and spent a ship load of cash staying at fancy resorts. As well as, everyday life in Singapore simply prices some huge cash so in complete, I spent about $5.5k within the month.
I made no withdrawals from the portfolio as I had sufficient money coming in from my weblog in addition to leftover money from different sources. My weblog generates cash each month to the tune of ~$3k and I cowl precisely how I earn cash from running a blog in different posts.
In future posts, I’ll have a chart that breaks down precisely how a lot revenue I produced from my portfolio and different revenue streams in opposition to my bills.
Proceed Studying:
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