The stock market giveth and the stock market taketh away.
Oh well … I’m going to keep building anyway.
After finishing March up 3.49% for the month, my portfolio closed out April down 2.95%. The market hates uncertainty and, well, there was plenty of that over the last 30 days or so. Some feared we were on the verge of World War 3 due to tensions flaring in the Middle East. Today, instead of firing rockets and drones toward one another, Homas is currently pouring over a cease-fire and hostage-release agreement proposal by Israel.
The market has pretty much shrugged it all off.
A bigger problem seems to be inflation’s unwillingness to get the heck out of town. I think I speak for all market participants when I say you’ve overextended your welcome, inflation. The market is freaking out about what the Fed is going to do with rates and, once again, it left them steady. The federal funds rate has been between 5.25% and 5.50% since last summer, when the Fed last hiked.
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
— Fed statement
Economic growth is moving along while strong job gains and low unemployment aren’t helping, but hey, at least Chair Jerome Powell put the kibosh on talks of the Fed heading the other direction, surprising the world by actually hiking rates again.
That would confuse everyone and, just like with uncertainty, the market isn’t a big fan of confusion, either.
With the war in the Middle East and inflation as the month’s two major market movers, it’s no wonder my portfolio was down … the entire market was. The important thing, though, isn’t what I lost (which amounted to less than $30 on paper), but what I gained.
Here’s where things stand 90 days in
April, like last month, next month and all the months to follow, was about consistency. I’m nothing if not consistent and, without that consistency, my portfolio would be nothing, too. It certainly wouldn’t be closing in on the four-figure mark like it is today, I can tell you that for free. That — consistency — is what I used to counter the uncertainty.
I put exactly $300 to work in April ($10 a day).
I invested $70 in Microsoft
I invested $40 in SCHD
I invested $40 in Robinhood
I invested $30 in Costco
I invested $20 in Rivian
I left $100 in the cash stash to earn 5% APY
As things stand a day into May, I have around $680 invested (75% of my portfolio) and $230-plus in cash (the other 25%).
SCHD is my biggest position, around 47% of my portfolio
Costco clocks in as my smallest (7%)
Rivian has been my worst performer (-11%)
Costco has been my best (+0.7%)
So far, my 91 days as a market participant have, on paper, cost me $9.66 (my unrealized total loss). I’m not discouraged, though. In fact, I’m pretty encouraged. Seeing my stocks head lower wasn’t fun, but it was a good lesson that stocks can go down just as fast as they can go up … faster even. Sentiment will shift, share prices will move accordingly. Me, though, I’m not shifting a single thing.
Ten dollars a day.
Whether the market is up or down, $10 a day.
I’m not a trader. I’m not looking to ride the momentum or sell to avoid short-term losses. I’m an investor, looking to build wealth one day and $10 at a time. I’m investing in companies I think can create tangible value for shareholders over the next decade and, with that approach, what happens day-to-day means less to me than the opportunities day-to-day dips create to add to them.
Here’s a look at the portfolio as of this newsletter:
My money is making money
I want my portfolio to be a long-term growth machine, but it needs to create some cash flow, too (mostly so I can invest more into my long-term growth plays).
On that front, I’m happy to report my small, daily deposits are starting to yield some fruit. While I didn’t receive a dividend in April (the $1.99 I received from SCHD in March continues to be my lone payout while my next, a whopping $0.08 from Costco, is scheduled for later this month).
Thanks to the extra $100 I added to my cash stash, though, things have taken off from an interest-income standpoint:
Interest income for February: $0.02 (+$0.01 for stock lending)
Interest income for March: $0.28 (+$0.02 for stock lending)
Interest income for April: $0.73 (+$0.02 for stock lending)
Total interest income $1.07
Are you a market participant?
There are more than a few ways to make money in the stock market, but you can’t take advantage of any of them if you don’t participate. Don’t have much money? Me either. I mean, I’m not investing huge chunks at a time — $10 every day — but it adds up fast. Consistency is key and, if I can build a million-dollar portfolio, anyone else with a phone, internet connection, and a little disposable income can, too.
If you aren’t already, start investing today.
Need a brokerage?
Investing is impossible without a brokerage. If you’re in need, I recommend Robinhood. Sign up with this link and we’ll both get a little something to brighten our financial futures. The best time to start investing was yesterday. Today’s the next best and, well, if you don’t start today I highly encourage you to pencil it in for sometime soon. Your future self will thank you.
Disclaimer: I’m a market participant, not a financial advisor. This is not financial advice … but it could change your life.
How'd your April go?