Summer vacation in Italy is over and we enjoyed a great family vacation. A blogpost about this vacation follows in the coming weeks with the highlights of our trip. So life picked up to normal pace. On Sunday mornings I love to start the morning with the Global and Australian Market Update of Garry Davis on YouTube. He summarizes the market trend perfectly each week. A great 30 minute review of the markets each week.
Today Garry clearly states that the Bull Market rolls on. Companies have continued good forward guidance and EPS which drives the stock valuations higher. In the earnings season Technology and healthcare have been very strong. Earnings growth has been so strong that the sector P/E ratios have fallen since February despite prices rising. In other words earnings are rising faster than prices. Growth stocks is where you want to be.
So while the stock markets are searching for new all time highs, we wonder what the Belgians are doing with their money…
The following headline in the newspaper De Tijd did catch my attention.
Belgians did place in the first half of 2018 5,5 billion extra on their savings accounts…incredible. Although the interest rate is hardly 0,11%, savings accounts remain extreme popular. The banks say that those savers are looking for alternatives but personally I have been hearing this for more than 2 years now.
In total there is now 234,5 billion euro parked on savings accounts. That is an increase of 2,5 % and more than the 2,1% of 2017.
The % return on a savings account does not compensate the inflation so the result is that Belgians are savings themselves poorer. And the low interest rates will remain for many years to come…
Let’s see what our July 2018 cashflow was for my mom’s portfolio. Let’s see how much money we added to her bank account.
Dividends & Options received in July 2018
During the month of July 2018, we received 231,28$ passive income. Only Dividend income. Pure money on our mom’s bank account.
Here you find the overview of all dividend payouts during the year 2016, 2017 and first months of 2018.
The Options Trade Review
No options trades in July. We focussed on vacation and quality time with the family.
Dividend & Options Income Growth
July didn’t hit our monthly goal of 290$ per month. Nevertheless after 7 months we have 69% of our yearly objective and generated 2.412,80$ cash out of the market. Actually last year we earned 1783$ dividend income in a whole year.
So the goal for this year is 3500$ and we have 69% locked in. Only 5 months to go…to generate 800$. Our average income has been 344 dollar including options income. Without options income our dividend monthly income has an average of 200$ per month.
Going forward
Our Year to Date result is 2412$ cash. When we calculate our YTD return we have on our portfolio NAV value a net return of 12% YTD. I wish all Belgian savers good luck with their 0,11% savings accounts !! You can read the inflation for July 2018 in below graph. Inflation has gone up to 2,17% with an increase of 0,11%. I have seen this inflation increase reflected in price increases for different goods and services.
This means that all Belgian savers lost simply 2% on all money they put on their savings accounts in July !! They got poorer without realizing it !! If my mom had put the value of her portfolio on a savings account, she would get 20 Euro for the whole year…. you can read above what she gets now. Financial literacy is a big problem in Belgium and many countries. We hope you learned something. End of this blogpost. Thanks for reading.
Thanks for following us on Twitter and Facebook and reading this blog post. We end with a quote as always.
Source : De Tijd
2 Response Comments
That is a really nice return on NTA. 12%, keep up the excellent work.
Thanks a lot for your feedback ! We are on track for hitting our 2018 yearly objective.