QUESTION 1 – “Why do you prefer to work with USD and not GBP or even EUR? Is it because of the Bonds, Stocks and Reits you choose?”
ANSWER – There are a few reasons:
1. The first is that I lived in the USA for many years so most of my assets are in US Dollars as that’s how I was paid. I haven’t seen any reason to change that as of yet.
Towards the end of the last post on Wolfe Waves back in December, we identified a weekly bullish Wolfe Wave in the TLT (Long Term US Treasury Bond ETF). The wave completed just last week, then interestingly enough, turned back down. If you would have gone by the WW rules and got out at the target line, that would have been around a 10 point profit.
As expected, December was a very volatile month in the US markets. We saw the biggest point loss in the Dow on a Christmas Eve ever, then we saw the biggest point gain ever on the day after Christmas.
December was an interesting month. I decided to exit Zopa and distribute the capital to other lenders. You can read in more detail why I decided to do this further down in the Zopa section of the update. I also added some more information to the table and charts section giving more information on income and XIRR calculations, as well as adding income graphs for each lender.
On the 9th of December I posted about a potential bearish wave in the S&P 500 & VTI ETF. Yesterday (17-12-18) it hit the target line exactly in Both!
The US market has bounced back a bit due to a rumor that the US and China were about to agree a trade deal. We’ll see what happens there.
I noticed a bearish Wolfe Wave that looked like it was about to reach point 5. I continued to watch, and sure enough it looks like it may hit the target line!
Peer to Peer Lending Portfolio Update for November 2018 The update for November 2018 is a little late this month. I was away traveling in Spain with some friends for a week so I didn’t get the time to provide the full update. I did however update the portfolio returns so they are still accurate …
Wolfe Waves Many years ago when I was still finding my feet with investments and looking to “get rich quick”, I took an interesting trading course by a gentleman called Bill Wolfe on an investment strategy called “Wolfe Waves” (named after himself obviously). It is similar to the Elliott Wave Theory, however much easier …
Wolfe Waves – Is a Wolfe Wave Developing in the Dow? Read More »
The Growth Portfolio took a dip in October, mostly due to some uncertainly about the US midterm elections, which will be held in November (6th). That, added to the trade war situation with China really shook things up a bit. It may calm down towards the end of November once we get the elections out of the way. Who knows if it will rally, or fall depending on if democrats or republicans win the house and/or the senate. Personally I think it will rally back up into the new year. Optimism is high right now, but not quite high enough for a major crash yet (yes, you read correctly, “optimism”, markets typically seem to do the opposite of what people think they will do). If you look to the past, when people are most optimistic is when the biggest crashes happened, when no one was expecting it.
