June is over, I was going to update you on the evolution of the money machine and the month’s stock buy.
The Money Machine June 2018
In June, the stock market went down a bit, although Friday was a solid recovery. This caused the GFIC index to end at -0.82%. Unfortunately, our trend was broken better than the index when we ended June at -1.27%. It ended in 9 months in a row where we beat the index. Now we have to take another look and try to beat it!
Because we have had such a long period where we have indexed, we have outperformed the index when we look at developments for the first half of the year. Our money machine is up 6.64% while index is up 3.92%. We think this feels great and is obviously a result we are happy with.
What did we do in June?
At the risk of becoming crippled, we have not bought more shares this month either, we save for our leave.
Listen and amazed we have actually sold some shares! Not because we believe in a crash or fall in the near future but because we are looking at a real estate investment.
As I mentioned a few times on the blog now, we want to diversify and not be too dependent on the stock market fluctuations. Today, we are quite heavily invested in equities and funds, even though we have already reduced the weight on the stock exchange during 2018. Prior to real estate investing, we had about 10% of our assets in alternative investments and 90% in our money machine on the stock exchange. If we can balance it with other assets, it feels safer for the future. If we get the real estate investment we will have about 75% on the stock exchange and 25% outside.
We want to create stable cash flows that we can live on the day we have reached financial independence. A real estate investment is an asset that generates very (usually) stable cash flow month after month. I hope I can give more information about how things have been going for us within a few months.
How has the first half of the year gone for you?
PS. For those of you who like graphs and study your development a little more carefully. If you use Avanza you can create “portfolio reports”, you get a lovely pdf with graphs, numbers etc. Quite fun to actually look through ? You will find there as shown below. Go to “my pages” and then the “portfolio report” tab. There you can choose which accounts you want to make the report for, the time period and which index you want to compare.