Tuesday, July 15, 2008

net worth update july, 2008

Results for the 2 Months Ended July 15, 2008

Debt/Asset ratio rose to 0.52%
Net Worth moved down 4.9%
Total Assets decreased 2.9%
Total Liabilities decreased 0.9%
House Value/Total Assets rose to 71.7%
Non-Registered Portfolio declined 12.9%

Calendar Year to Date Gain/Loss: +7.1%

Ouch...what a horrible 60 day period. Almost 5% of our net worth was lost since May 15, 2008. This is our first ever net worth decline. Obviously the poor stock market performance has hit our net worth pretty hard. The S&P 500 index is down 16.4% year to date.

9 comments:

Sarlock said...

What a wild ride. My portfolios have been hammered as well.

Can't help but drool over some of the cheap stocks right now, but I am still not convinced that we're near the bottom yet... and we're likely going to see some massive cuts in financial stock dividends.

Canadian Dream said...

MG,

I know the feeling. After so many good months it almost pained me to write that I had lost 10% of my net worth in a two months.

Hold the course and it will get better (when I'm not sure, but it will).

Tim

pitz said...

With increasing volatility comes increasing long-term gains. So don't feel bad.

I've lost enough to buy a decent house in the past 2 months, but the earnings of all of my holdings continue to grow quite healthily, and that's all that matters.

telly said...

Only your 1st ever net worth decline? Lucky $#%@! ;)

MG (moneygardener) said...

nice to know we are all not alone. Just like long term investing in equities, this is the price we pay for exposure to more volatile investment vehicles. Our net worth is more volatile because it is designed for long term growth, not capital preservation.

pitz said...

Yeah exactly. Things would be even more volatile if there were liquid markets to mark all assets to, including real estate.

As I've mentioned before, and perhaps elsewhere, marking one's tax liabilities (or assets) to market, and including that in your net worth is also a useful tool. I use 20% (one half of 40%) as the tax rate on accrued capital gains, so a $100k 'loss' only looks like $80k loss on my net worth (and conversely, a $100k gain only appears to be a $80k gain).

Sami said...

Buffett declined by 20% so do not feel all that bad, you are doing better than him :)

Phil Plasma said...

Great blog, I love the idea of your net worth updates, I could go back and look at my own investments and do the same thing. My question for you, however, is how do you determine your house value on such a regular basis? This figures into your debt/asset ratio, total assets and house value/total assets figure so it is fairly important.

MG (moneygardener) said...

Thanks Phil. I don't use a complicated method whatsoever. Basically I keep my eye on MLS from my neighbourhood and pay attention at the speed of sales.

1. My neighbourhood contains many houses that are very similar to mine.
2. I try to be very conservative because of costs of selling and the fact that it is hard to value unless I really did sell.

..MG