As the last week of March kicks in before Easter holidays, we reflect on our Kids Portfolio. Are the dividends still coming in our kids bank account while I travelled last week in the USA ?
I faced the winter storm Toby and got confronted with a nice layer of snow on Wednesday. Driving was very dangerous but I kept it safe.
Let’s take a look at the market sentiment. Thursday and Friday last week the markets had a severe drop.
Market Sentiment and Sector Watch
Donald Trump signed a tariffs plan against China and they did the same as an answer. Will this kick off a trade war ? Let’s put it all in perspective.
The economy is still strong and company profits are growing. Employment rates are low and salaries are on the rise.
However the Market sentiment has turned negative again. Will we break lower ? I can not predict but next week and month will be very interesting.
Last week we got our first 2018 interest rate increase from the FED. How many will follow? Will the stock market bounce up again? As cheap money disappears out of the market, we will most likely go back to normal price earnings valuations.
Let’s take a look at the Sector Watch. Here we look which sectors we should invest in and what is different compared to last month. We placed the latest Sector Watch graph below…This always you to make you your own analysis.
We see that all sectors dropped further down. The energy sector turned red, so did the financial sector XLK and the Commodities XLB sector as well. If you want to buy anything, I suggest to wait or search for ETFs that are consolidating.
Below we discuss some interesting ETFs
Here we list some speciality ETF names. If you want to invest in cybersecurity companies, take a look at HACK. If you want to invest in social media companies, take a look at SOCL.
There are 2 ETFS investing in semiconductor : QQQ and SMH. If you expect an upward trend in the copper price, invest in JJC. If you want to invest in the copper miners, use the ticker COPX.
- HACK: ‘ETFMG Prime Cyber Security ETF’
- SOCL: ‘Global X Social Media ETF’
- SMH: ‘VanEck Vectors Semiconductor ETF’
- QQQ: ‘PowerShares QQQ Trust – Technology ETF’
- JJC: ‘iPathBloomberg Copper ETN’
- COPX : ‘Global X Copper Miners ETF’
All above ETFs followed the drop in the stock market last week. But here is an opportunity that we are targeting. The Gold miners. Since 2 years we have been basing at the 13$ level. We saw the price break out above the 50 ema. Gold miners have been lowering costs and improving productivity. When the gold price picks up again, the gold miners will be the first to benefit.
Tickers to put on your watch list are JNUG and NUGT. Be aware we are not a financial advisor. Execute your own risk analysis and investment research. Read our disclaimer.
We hope this sector review was useful for you to understand market opportunities and how we analyse potential opportunities.
Dividend Income Update
Now let’s take a look at the dividend income report of February 2018 for my kids’ portfolio!
During the month of February 2018, we received 20,78$ dividend income. Almost the same as last year.
Portfolio analysis and Growth Strategy
We started early 2017 with a starting amount of 10.000 EURO . The 2018 goal for my kids’ portfolio is to generate 1000$ in the total year. We achieved 11% of our yearly goals so far.
Going forward
We need to get in action. Our cash position has increased to 3900 Dollar. We need to put the strategy in place to generate the necessary cash flow and achieve our yearly goal.
After 14 months we have 712 $ received on our kids bank account with a start of 10k last year in January. The goal in this portfolio is to grow the cash amount per month.
Good luck with your personal finance strategy for your kids! Thanks for reading.
Putting money on a savings account for your kids is NOT a strategy to make it grow!
We hope you learned something from this blog post and keep on following us on Twitter and Facebook. As always we end with a quote.
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