Saturday, October 30, 2010

Monthly Review - October 2010

October was a very good month for financial progress. Just about everything moved my way and, in in the case of equities, the gains were impressive. Even the currency movements were mildly favourable as the USD depreciated further. Cash flow on the properties was negative(although still a positive contribution to net worth) due to a combination of repair bills and a single vacancy. The cash outflows will increase next month as we will have two vacancies and one of the vacant properties will be getting a minor makeover (repainting, new kitchen bench, resealed floor etc etc etc). Savings were low.

Here are the details:

1. my Hong Kong equity portfolio appreciated quite strongly. I purchased shares in AUPU and some other small caps and sold some call warrants on HWL;

2. my ETFs appreciated in line with their respective markets (Hong Kong, Russia, Taiwan, India and China) ;

3. my commodities appreciated for a modest gain (with gains in the basket ETF, silver and NICK offsetting a fall in HOGS);

4. one of my properties is vacant but the portfolio is still making a positive contribution to my net worth. However, I have been hit hard with multiple repairs which were either paid in October or will be paid in November. This means that we had a negative cash flow in October. That said, as the biggest component of the monthly payments is principal on the mortgages, the properties remained profitable even with a vacancy and the bills. That may change next month;

5. currency movements were mildly favourable, as the AUD, NZD and RMB appreciated against the USD;

6. savings were positive in spite of income being low and expenses being slightly high. Net savings were modest;

7. I transferred some money to mrs traineeinvestor for tax planning purposes. As this is an outright transfer it represents a reduction in the net worth of the private portfolio

My cash position was reduced after purchasing some equities, a transfer to mrs traineeinvestor, repaying a tenant's bond, paying for a short holiday in Japan and setting aside a reserve for the property related expenses. Cash on hand now represents about six month's worth of expenses.

For the month, net worth increased 3.8%. The year to date increase is 23.0%.

My target retirement window remains sometime between early 2012 and the end of 2013.

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