Enjoy this curated list of Sweat Your Assets monthly content for July 2023.
MARKET BAROMETER
An eye view of Stock Market Indicators, ss of July 28, 2023:
[this month | previous month | % changes over five years].
- VIX (volatility index) – the fear gauge: 13.33 | 13.51 | +14.52%
- S&P 500: 4,582.23 | 4,376.86 | + 61.33%
- S&P 500 P/E Ratio: 26.53 | 25.61 | +16%
- VTSAX – Vanguard Total Stock Market Index Fund: USD 110.85 | 105.57 | +55.64%
- BND – Vanguard Total Bond Market Index Fund: USD 72.29 | 72.99 | -8.45%
- VNQ – Vanguard REITS – Real Estate: USD 84.71 | 83.11 | +1.96%
You might have noticed: the US stocks have enjoyed an impressive rally in 2023, thanks to a combination of cooling inflation, fading recession fears, and hype over artificial intelligence. I bet your investment portfolio has benefitted from the same market rally.
As usual, strong growth calls for caution. From a probabilistic viewpoint, the higher the prices of asset classes(i.e., P/E ratios), the higher the chances for (abrupt or slow) downward adjustments. No wonder you will still hear prophets of doom predicting bear markets.
Indeed, It is fair to state that average stock prices are historically high right now; allocating a low probability for higher growth is technically correct. However, the future is unknown, and that’s a good thing.
Personally, I maintain the course. I will stay invested with my all-weather portfolio in August. Any upcoming bear market will only be a time for deals or portfolio re-balancing.
_______
QUOTES
- Optimism and Luck. A pessimist is never disappointed. However, a pessimist never gets lucky (anonym).
- WASTING TIME. If you commit to nothing, you will be distracted by anything. (James Clear)
- STOCKS vs INDEX FUNDS. Give up the drop. Become the ocean. Rumi (Rumi)
Is Your Money Safe in a Bank? You traditionally deposit your money in the bank. Common sense would suggest it makes sense. After all, banks keep our money “safe” and accessible while providing extra financial services (cards, loans, mortgages). However, in early 2023, international headlines reported a Domino of US banks collapse. These events raised a legit question: Is your money safe in a bank? Read More.
_____
Risk Revisited Again. In this short video tutorial, Howard Marks highlights some key aspects of Risk and Investing before inviting you to read his Risk Revisited Again Memo here (2015). Watch it.
_______
Until Next Month…Keep it Real and Sweat Your Assets.
Alessandro BARONI
If this newsletter was forwarded by a friend, and you would like to subscribe for free, you can do it here.
   |
