Friday 1 November 2013

Net Worth: October 2013

An even better month for the stock market boosted both my leveraged share portfolios and the value of our SMSF investments. This month also saw two months of employer contributions deposited, which also helped.

Assets$ Amount$ Diff% Diff
Stocks *$224,522$55,331n/a
Debts ^$ Amount $ Diff% Diff
Home Mortgage(s)$102,373$70.01%
Net Worth$1,139,744$78,0237.35%
* the Stocks figure is portfolio value - margin loans. The LVR is around 80% overall.
^ doesn't include the ~$675,000 of investment loans

With a large exposure to the stock markets, a return of investor confidence and bullish stock market would provide a major boost to my NW progress. Hopefully 2014 sees a return to stronger global growth and reduced uncertainty and volatility. The trick will be to know when to start reducing my leverage in preparation for the next inevitable correction or bear market. Having seen out the GFC and EFC, I hope I don't have to go through a third 'once in a lifetime' market crisis. But there are still major storm clouds in the horizon in terms of the massive government debt levels present in many developed economies, an aging population increasing welfare costs and reducing productivity growth, and the costs of 'peak oil' and many other finite commodities and tackling global warming (or mitigating the effects thereof).

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