A quick mid month refresh of my finances suggests i might be on course for my first monthly decline in net worth for over 4 years.
The main contributing factors are:
1) Around a 5% decline in the value of my investment portfolio, with emerging markets equities & currencies suffering materially in the first 2 weeks of the month. I've also noticed quite rapid declines in the value of the fixed income components of my portfolio (high yield bonds/pref shares). I took advantage of the declines to add the iShares Asia Pacific high dividend ETF to my portfolio. I have identified some other potential purchases aligned to my core strategy but will hold off committing too much to the markets at this moment.
2) Around a 4% decline in the value of my pension funds, which are heavily invested in global equities, and have broadly tracked the markets down.
3) I've also had a couple of one off expenses associated with renewing my tenancy, resulting in a below average (albeit still positive) savings rate.
I'm trying not to see this as a negative. The investment declines are market wide and if anything a pull back in the recent rally is healthy and provides a buying opportunity. Income and savings are still strong, and cash, property & investment yields are all healthy.
And the decline got a lot bigger this morning. While it is painful seeing a portfolio fall 10%, 20% or more, I try hard to look on these declines as opportunities to buy shares at better prices.
ReplyDeletetoday has been brutal!
ReplyDeletebut yes, my eyes lit up with the the opportunity to buy and i just made a purchase. I am being cautious not to over commit at this stage though given the volatility.
Cheers