Positions From last week,
Horizons BetaPro US Bond Bear+ ETF: 100 shares: total cost of $1,333.95
Horizons BetaPro S&P 500 Bear+ ETF: 250 shares: total cost of $6994.95
Transactions this week,
Horizons BetaPro S&P 500 Bear+ ETF
Jan 13, sell, 250 shares @ $31.37 - $9.95 commission
Total Cost: $6994.95
Realized Gain/Loss: $7832.55 - $6994.95 = $837.6 (11.97%)
Jan 13, Buy, 400 shares @ $31.90 + $9.95 commission
Total Cost: $12769.95
Jan 15, Sell, 400 shares @ $34.88 - $9.95 commission
Total Cost: $13942.05
Realized Gain/Loss: $13942.05 - $12769.95 = $1172.1 (9.1%)
Jan 16, Buy, 300 shares @ $33.66 + $9.95 commission
Total Cost: $10107.95
Jan 16, Sell, 300 shares @ $33.94 - $9.95 commission
Total Cost: $10172.05
Realized Gain/Loss: $10172.05 - $10107.95 = $64.1 (0.63%)
Horizons BetaPro S&P 500 Bull+ ETF
Jan 16, Buy, 2000 shares @ $6.47 + $9.95 commission
Total Cost: $12949.95
Market Value: $6.45 x 2000 = $12900
Unrealized Gain/Loss: -$49.95 (-0.39%)
Trading Gain/Loss from this week: $2073.8
Year-to-date Trading Profit: $2566.3
January 16, 2009
January 14, 2009
Passive/Active Index Investing
This post is about
Investing
I just don't understand the attraction to passive or active index investing ever since index investing gets so popular. The idea is simple enough; use only broad-based index funds and always stay invested. The proponents of passive investing believe that active management cannot reliably beat the market and they always have plenty of data to back up the theory.
Stock indexes have always been an indicator of the broad market movements that affects all stocks simultaneously. Mutual fund managers traditionally compare their performance against that of a stock index. Hence the term "beating the market". Around forty years ago, some very intelligent people thought it will be easier to start a fund that mimics the performance of stock indexes instead of trying to beat it.
And this was how index funds came about.
Picture Source: www.dailyreckoning.com
However, the whole deal about "investing in the market" hinges on the crucial assumption that the stock market tend to go up over time. How can we be sure that this remains true in the future?
For centuries, Europeans believed that all swans were white until black swans were discovered in Australia. Likewise, we have always assumed that stock indexes tend to rise in the long run (and hence are great long term investments) until we saw data on the recent S&P 500 and that of the Nikkei index.
Given that many economists, including Nobel Prize winners, advocate a index fund approach to stock investing, I certainty wouldn't say it's a FALSE theory.
Stock indexes have always been an indicator of the broad market movements that affects all stocks simultaneously. Mutual fund managers traditionally compare their performance against that of a stock index. Hence the term "beating the market". Around forty years ago, some very intelligent people thought it will be easier to start a fund that mimics the performance of stock indexes instead of trying to beat it.
And this was how index funds came about.
Picture Source: www.dailyreckoning.com
However, the whole deal about "investing in the market" hinges on the crucial assumption that the stock market tend to go up over time. How can we be sure that this remains true in the future?
For centuries, Europeans believed that all swans were white until black swans were discovered in Australia. Likewise, we have always assumed that stock indexes tend to rise in the long run (and hence are great long term investments) until we saw data on the recent S&P 500 and that of the Nikkei index.
Given that many economists, including Nobel Prize winners, advocate a index fund approach to stock investing, I certainty wouldn't say it's a FALSE theory.
January 10, 2009
Weekly Trading Update - January 9, 2009
Horizons BetaPro US Bond Bear+ ETF
Jan 5, Buy, 100 shares @ $13.24 + $9.95 commission
Total Cost: $1,333.95
Market Value: $13.60 x 100 = $1,360.00
Unrealized Gain(Loss): $26.05 (1.95%)
Horizons BetaPro S&P 500 Bear+ ETF
Jan 6, Buy, 500 shares @ $27.94 + $9.95 commission
Total Cost: $13979.95
Jan 9, Sell, 250 shares @ $29.95 + $9.95 commission
Total Cost: $6994.95
Realized Gain(Loss): 7487.5 - $6994.95 = $492.55 (7.04%)
Jan 9, Consolidation
Total Cost: $6994.95
Market Value: $30.28 x 250 = $7570.00
Unrealized Gain(Loss): 575.05 (8.22%)
Year-to-date Trading Profit: $492.5
Jan 5, Buy, 100 shares @ $13.24 + $9.95 commission
Total Cost: $1,333.95
Market Value: $13.60 x 100 = $1,360.00
Unrealized Gain(Loss): $26.05 (1.95%)
Horizons BetaPro S&P 500 Bear+ ETF
Jan 6, Buy, 500 shares @ $27.94 + $9.95 commission
Total Cost: $13979.95
Jan 9, Sell, 250 shares @ $29.95 + $9.95 commission
Total Cost: $6994.95
Realized Gain(Loss): 7487.5 - $6994.95 = $492.55 (7.04%)
Jan 9, Consolidation
Total Cost: $6994.95
Market Value: $30.28 x 250 = $7570.00
Unrealized Gain(Loss): 575.05 (8.22%)
Year-to-date Trading Profit: $492.5
January 07, 2009
US Treasury Bonds & Stock Market Recap
This post is about
Markets
Finally, the price of 30-year US Treasury Bond ($USB) has turned south. As you can see below, it remains in the overbought territory for almost one month before it went down a couple of days ago. The price drop is mainly caused by rising treasury yields as investors move to riskier securities, stocks especially.
The question is whether investors are moving back into riskier securities too early. The economic data remain dismal, and the Fed's report Tuesday of the minutes of its last meeting showed that some policymakers feared a "prolonged contraction" of the economy.
The government on Friday will report December employment numbers, and the general consensus forecast is that US lost 500K+ jobs last month. If we see a number worse than that, then we should see more downward pressure from the stock markets. Also, if tomorrow's S&P 500 index does not hold on to its 20 MA around 892 points, then sell signal will be triggered.
The question is whether investors are moving back into riskier securities too early. The economic data remain dismal, and the Fed's report Tuesday of the minutes of its last meeting showed that some policymakers feared a "prolonged contraction" of the economy.
The government on Friday will report December employment numbers, and the general consensus forecast is that US lost 500K+ jobs last month. If we see a number worse than that, then we should see more downward pressure from the stock markets. Also, if tomorrow's S&P 500 index does not hold on to its 20 MA around 892 points, then sell signal will be triggered.
January 01, 2009
Initial Net Worth Update
This post is about
Net Worth
Here is the grand opening for my monthly net worth update on this site on January 1st, 2009.
In future, the monthly net worth update will be posted at the end of every month.Anyways, here it is as of the first day of 2009,
Assets
Vehicles: $6500
Cash: $6,200
Savings: $11,100
Registered Investment Account: 18,400
Non-Registered Investment Account: $25,400
Total Assets: $67,600
Debts
Credit Card Debt: $2,300Total Debts: $2,300
Total Net Worth: $65300
Don’t worry, I pay off the balance of my credit cards every month.
If it's not because of the stock market downturn last year, the net worth could be much higher.
My net worth goal at the end of year 2009 is $90,000.
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