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Networth Aug 2010

August 26th, 2010 at 02:30 pm

It's that time of the month again! My net worth posted a very modest increase this month. Only 1.33%. For a while, it was actually behind too.

What happened? The stock market hasn't been all that kind this month, and you know, I'm kind of amazed at just how much influence the stock market has on my net worth these days.

It got me wondering what my basic asset allocation is, and... it's 65% stocks/options, 35% cash/bonds. Hmm. I thought my asset allocation might be off somehow, but it's actually fairly on target. That percentage is also when I am bought into stocks. Otherwise, my cash/bonds percentage would be much higher.

So, despite my relatively risky hobby of stock trading, I don't feel like I am taking too much risks. When I do trade stocks, I typically stick with quality company names, and on top of that, now I am adding covered calls to sort of buffer against market volatility, and at the same time, converting the stocks to be more of a passive income generator. As far as stock trading goes, I'm actually very conservative.

Still though, the month has essentially been a disappointment... as the blog subtitle says, it could be worse. A lot worse! Gotta celebrate the little things in life.

1 Responses to “Networth Aug 2010”

  1. baselle Says:
    1283231277

    The reason why you are getting wiped is that all the asset classes are getting wiped:

    Stocks - down
    Bonds - flat, about to go down because EVERYBODY is in them
    Cash - really flat

    Turns out that while the risks are different and can be diversified, the trends are all the same, and nothing is up enough to counterbalance. About the only thing that would increase the net worth or slightly counterbalance the drops is a quarterly dividend.

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