My Own Portfolio : My Passive Income Report Out May 2019

Good morning everyone. We are at a historic moment where the stock markets in the US reach all time highs. It’s amazing how central banks are manipulating the monetary system and want to intervene with interest rate cuts.

Junk bonds surge to new high. Long term yield curve steepens means the growth is accelerating. The USD crashed last week after the FOMC Fed meeting. So it is likely that 2 or 3 rate cuts are already priced in.

So the stock markets are at all time highs and what do we read in the Belgian Financial Newspaper “Young people think investors are speculators”?

More than 50% of the young investors thinks that investors with portfolios of 30% or more in stocks or funds, is a speculator. That was the conclusion of an investors survey of the bank ING. What has contributed to this behaviour ? Well one of the reasons has been the Speculators Tax of the Belgian politicians (headed by the party CD&V and represented by Mr. Peeters).

The last couple of years we have seen more and more taxes on the retail investors. That has influenced the public opinion. Personally I think the main reason for thinking like this, is the MAJOR LACK of FINANCIAL LITERACY.

There is NO OTHER REASON. SCHOOLS FAIL, PARENTS FAIL …so young people and millenials are NOT prepared for proper risk management and good investing skills. I see it happen in my family, my environment and many different countries that I visit….so sad.

So let’s move on to our own Market Analysis.

Market Analysis

When we analyse the performance of the SPY (screenshot 23 June) there’s no difference compared to last months. The trend is YOUR FRIEND ! We can clearly see that the SPY continues the trend. Last month we wrote “can we attack” the All Time highs and now we are AT ALL TIME HIGHS. Nothing to add to that…enjoy the moment !

Below you can find a 2 year chart of the SPY.

Let’s dive in the numbers of my April and May Passive Income Income Report.

My Passive Income in April & May 2019

In April 2019 we received a total of 662,26 $ passive income, solely dividend income. In May 2019 we received a total of 1105,04$ passive income, 538,27$ dividend income and 657,6$ options premium.

So in total in two months we received 1767,3$ passive income in two months. This will pay for the family flight tickets of our summer vacation. This brings our total for the year at 3330.90$. We have 23% of our yearly objective.

Below you see the monthly summary overview of the cash flow coming into my bank account.

My Options Trades

Gold has been ignored for decades and more and more people are looking for safe harbors in gold. Gold says more are seeking safety.

As we made good options premium with JNUG in our kids portfolio, we also wrote some puts in our own portfolio. We wrote 3 puts at a strike price of 8. In May we got assigned 300 shares at the share price of 8$. We also sold 3 puts at a share price of 7$ for september. Where is the share price today ? At 11,36..nice. Take a look at the chart. If it goes to 24$, I will triple my money. Today I already have 1000 Euro profit on this investment.

The likelihood that the price drops back to 7$ is small. That cash premium will almost sure stay in my pocket.

The Euro/Dollar trend

We keep on following the EURO/USD valuation. The USD dollar finally dropped and now we can see a nice uptrend for the EURUSD. Possibly the EURUSD can go back up to 1,18. Another opportunity in the FOREX market.

I definitely look at this chart differently now. Another opportunity for profit.

Going forward

My focus for the the coming month is to write more cash secured puts on gold ETFs and other juicy premium stocks. We need to increase our options writing activity to increase our cash flow position. In parallel we focus on our forex skills. Our demo account has shown massive growth potential and we are now replicating this strategy in our real money account. Grinding forward to our yearly objective by building the different required skills. It’s not a GET QUICK RICH game but constantly investing time in improving a skill that can generate cash flow. It’s only sad that 98% of the people were never exposed to these investing skills and politicians/banks want to keep people STUPID !! One day this will change as technology is changing fast. New business models based on cryptocurrencies (such as the crypto LIBRA launch of the company Facebook) start to enter the market. Banks are based on an old school business model. Big revolution will come to the retail investors where they have the capability to manage their money more easily. We just will need to teach them the skills…. I am brainstorming how to do this in the most efficient way. Stay tuned !

This is the end of this blog post.

In 2019 we will send out ONE newsletter per month to our blog followers. Life can be busy sometimes and people lose track of following a personal finance and travel blog. Subscribe and you will get one email per month highlighting what you missed…

I realize I haven’t send out any newsletter yet but will try to do so for the May time frame.

Thanks for following us on Twitter and Facebook and reading this blog post. We end with a quote as always.

Source : De Tijd

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My Own Portfolio : My Passive Income Report Out May 2019