This week the stock market was like a ride on a Roller coaster. Stocks were driven by sentiment and news about earnings. One day a great optimism about companies making great money switched to a pessimism that those same companies didn’t make as great deal as originally claimed. Sometimes I feel like it would be better to stay aside and keep my money in cash to avoid this volatility.
On the other hand I am trying to look at the market from a longer term perspective these days and trying to ignore these up-downs. A great example of such ignorance would me my investments in my Trading account, which is my aggressive portfolio where I buy individual stocks. Similar approach is taken in my ROTH IRA retirement account which is my dividend investing portfolio (doing great job actually). Recently I started building my other money making machine in Lending Club account, which is P2P lending investment and growing very well. Check out how I was doing this week.
Trading Account:
New [tag]stock picks[/tag] this week:
Stocks bought or added to portfolio this week:
none
Stocks dropped from portfolio this week:
none
Stocks watched this week:
none
| Existing & new [tag]holdings[/tag]: |
| Symbol | Qty | Last | Gain($) | Gain(%) | Stop | ATR | Risk to stop (%) |
| [tag]V[/tag] | 20 | 73.35 | -55.19 | -3.63 | 67.28 | 2.2300 | -11.60 |
| Contribution this week | $0.00 | |
| Current [tag]capital exposure[/tag] | -11.51% |  |
| New positions available to open | 0 | |
| Starting [tag]account value[/tag] | $1,578.97 |
| Account value (without margin) | $1,534.18 |
| Buying power | $67.18 |
| [tag]Portfolio Gain/Loss[/tag] this week | -2.84% |
| [tag]Portfolio[/tag] Gain/Loss for JULY 2010 | 0.22% |
| Portfolio Gain/Loss for 2010 | -47.67% |
| [tag]Annual Return[/tag] (CAGR) | -36.11% |
This account was very volatile last week due to very low diversification. I understand that owning only one stock will drive this account up and down too much. However I am content with it. I will continue saving more money in this account as I mentioned in my last weekly review post and invest into an index fund to create a core of this portfolio. Then I will continue investing into individual stocks.
Lending Club:
| Debt notes |
| Available cash: | $4.81 |
| In Funding Notes: | $0.00 |
| Outstanding Principal: | $607.26 |
| Accrued Interest: | $3.38 | Account Total: | $615.45 | Net Annualized Return: | 12.15% |
| Contributions this week: | $0.00 |
| Weighted Average Rate: | 12.45% |
| Expected Monthly Payments: | $20.49 |
| Payments to Date: | $55.46 |
| Principal Payments: | $42.74 |
| Interest Payments: | $12.72 |
| Late Fees Received: | $0.00 |
| Notes Invested In: | 26 |
| Average Note Amount: | $25.00 |
| Net Annualized Rate to date: | Higher than 62% and lower than 38% of all investors. |
I am learning about this investing opportunity every day. It is great to see how this account grows and performs. I am aware about the risk involved and I took it into account. My goal is to invest $100 a month and reinvest all interest and principal paid back to notes as long as I will be able to invest solely from interest and principals (to be able to invest 4 debt notes a month only from interest and principal). Then I will decide how to proceed. My idea is to use income from this account and invest it into my ROTH IRA or Trading account, at least a portion of the proceedings.
ROTH IRA Account:
New [tag]stock picks[/tag] this week:
Bought 12.533 HSTIX @ $8.21
Existing & new [tag]holdings[/tag]:
| NTF Mutual Funds |
| Symbol | Qty | Last | Gain($) | Gain(%) | Div. Y(%) |
Port. (%) |
| AIGYX | 83.472 | $13.82 | $153.59 | 15.36% | 5.34 | 24 |
| ATIPX | 106.395 | $9.18 | $36.53 | 3.89% | 6.94 | 21 |
| GABUX | 77.118 | $6.15 | $3.48 | 0.74% | 4.10 | 10 |
| HISIX | 26.918 | $6.82 | -$16.42 | -8.21% | 4.73 | 4 |
| HSTIX | 49.858 | $8.21 | $11.57 | 2.91% | 3.36 | 9 |
| SICNX | 76.987 | $7.04 | -$8.01 | -1.46% | 4.83 | 11 |
| SWDSX | 62.474 | $11.43 | $9.91 | 1.41% | 3.70 | 15 |
| SWLSX | 29.814 | $9.53 | $15.21 | 5.65% | 2.16 | 6 |
| Individual ETFs |
| Symbol | Qty | Last | Gain($) | Gain(%) | Div. Y(%) |
Port. (%) |
| IGD | 29.0 | $11.04 | -$36.54 | -10.24% | 10.97 | 100 |
| Individual stocks |
| Symbol | Qty | Last | Gain($) | Gain(%) | Div. Y(%) |
Portfolio (%) |
| JNJ | 23.0 | $58.09 | -$17.70 | -1.31% | 3.74 | 100 |
| Account target and current allocation |
| Individual stocks | $1,336.07 | 42% | 21% |
| NTF Mutual funds | $4,737.67 | 38% | 73% |
| ETFs | $320.16 | 20% | 5% |
| Asset Allocation vs. Wilshire 5000 | Portfolio (%) | Benchmark (%) |
| Large Cap Value | 40.30 | 37.25 |
| Large Cap Growth | 31.63 | 36.60 |
| Mid/Small Value | 19.77 | 13.45 |
| Mid/Small Growth | 8.30 | 12.72 |
| Stock Stats | Portfolio | Relative to S&P 500 |
| Avg. Expense Ratio | 1.05 | |
| P/E Ratio | 13.73 | 0.90 |
| P/B Ratio | 1.93 | 0.93 |
| ROA | 6.91 | 0.97 |
| ROE | 17.73 | 0.96 |
| Projected EPS Growth 5yr% | 7.61 | 0.81 |
| Yield % | 4.72 | 2.13 |
| Contribution this week | $150.00 |
| Starting [tag]account value[/tag] | $6,413.76 |
| Account value | $6,449.30 |
| Dividends received in JULY 2010 | $16.60 |
| Dividends received in 2010 | $216.98 |
| Portfolio dividends yield 2010 | 3.36% |
| Portfolio dividends yield lifetime | 4.67% |
| Dividends received lifetime | $301.10 |
| [tag]Portfolio Gain/Loss[/tag] this week | 0.55% |
| [tag]Portfolio[/tag] Gain/Loss for JULY 2010 | 5.00% |
| Portfolio Gain/Loss for 2010 | -5.72% |
| [tag]Annual Return[/tag] (CAGR) | -4.57% |
| [tag]Portfolio Return[/tag] since inception | -15.42% |
I am still focusing on this account. It is performing well, holding its value and making money. Still my goal is to save $30,000 in mutual funds and then use half of the savings and re-allocate it into individual dividend paying stocks and ETFs. The primary goal is to reach 10% yield of my portfolio. I started this account about a year ago and since then I was able to reach 4.7% yield. I do not say that over the next year I will double it, but I try to get as close as possible to my goal (if it is possible at all). In that case I will be focusing on ETFs paying high yield dividend, but before purchasing I will try to avoid stocks which practice a dividend capture strategy which seems to me inefficient and too risky to hold such ETF. Recently I came around an ETF investing into high dividend yielding stocks and writing covered calls on those dividends to boost the income. That may be the way to go. And that is also the way I want to do with this portfolio later on when I save more money to have enough to write covered calls.
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