Monthly Review - July

My net worth increased by 2.3% in July.

The year to date increase is 20.6%.

The return on my investments in the was positive (if only by a small margin) in spite of the volatility at the end of the month.

July was not a great month in terms of either spending (too high) or return on investments. However, given the state of the markets and the fact that a lot of the excess expenditure was a hang over from last month's lack of discipline I have to be satisfied with how the numbers ended up. Here are the details:

1. my unit trusts appreciated in value during the month. Strong gains at the start of the month outweighed the declines towards the end;

2. my residual share portfolio was almost unchanged;

3. my investment in silver was slightly up;

4. my tenants continued to pay the rent on time and rents continue to be higher than the expense component of the outgoings. The exception is the new flat which is being renovated. However, even though I have a small negative cash flow on the portfolio as a whole (a situation which will change once the new flat is leased) income is still higher than the expenses;

6. Expenses were high, but almost all of the excess was carry forward from June which I had made a provision for last month. The effect was felt in my cash flow not my balance sheet;

7. my income rose very slightly during the month.

The combined effect of the combined effect of the above resulted in a 2.3% increase in net worth at month end.

The only investment activities undertaken during the month were (i) regular monthly payments into two small cap investment funds and (ii) purchase of a very small amount of additional paper silver.

Looking ahead to August, I will have a minor cash outflow as I finish paying for the fit out cost of the new property. I will also see my income rise again.

Of course, as I type this the month of August is off to a horrific start. The local market was down over three per cent today. Most other markets in Asia also down sharply. Somehow, I do not think this year's succession of positive monthly return will be continued.