April has been booming with a 7.5% net worth increase! It’s the biggest increase so far, but volatility persists in both stock market and cryptocurrencies and I’m starting to think of a change.
Volatility in the stock market
Right now it’s starting the dividend season and It’s not quite what I’ve expected. Due to recent political events and instability in the financial policy, things in the stock market went south.
I have a big exposure in the stock market considering my small net worth and that’s why I am thinking to decrease it or I may even get out completely and invest in other assets or into a business.
I didn’t plan to talk about politics and what I don’t like about my government and I won’t do that, my blog is not about what I’m doing in a country, that’s not a good strategy to rely upon unless you live in the USA.
Stock market under high risk
Right now the government wants to private pensions and incorporate those with the local public pension plan. The problem here is that the private pensions had a good return rate over the years and money was well spent with a good 3% – 6% return rate. The public pension scheme isn’t holding and investing cash, it’s just using it to cover costs.
I am foreseeing financial problems in the near future because private pensions are one of the biggest stock market players in my country and if they are forced to go public they will have to liquidize the assets that they own resulting in a really big price drop in the top companies.
I’m still waiting to get some dividends and somehow I hope that I may be able to receive them and then to get out, but it may be a little too late.
Net worth analysis
The biggest gainer was in the cryptocurrencies, with over 113.97% it’s quite impressive. But, don’t be fooled by this, volatility in this region persists and you can check that in previous month I had a -51.21% loss which wasn’t a fun thing to do.
Being an investor also means of not selling too quick and not getting carried away even if everyone may be going in that direction. Remeber that following a crowd is a social bias that we have, in most of the situations it’s useful, it’s a survival toolkit that our brain developed, just that in the financial markets it may not help you, it may even do the opposite.
Keep calm and apply logic to your decisions and when you want to take an action decided on what was your plan and if your goals are still aligned or not.
That helps me to focus even when I’m facing troublesome situations.
Another big improvement was in the P2P lending. I finally was able to improve it after more than 2 months of consideration.
P2P lending increased by 22.64%, I allocated more funds in this direction and you can check why I think it’s a good investment.
Loser of the month
The stock market is giving me a headache with a 6.4% drop, as I’ve explained above, there are some factors that I really see and I don’t like in this sector and that’s why I’m looking for alternatives where I can go. Sadly, because the local stock market isn’t liquid enough you can’t short sell stocks, that would’ve been a good thing to profit looking at the future.
My plans for this month
I’m still looking for opportunities in the market but I am considering of selling out my stocks and with the extra money that I have to either pay one of my big credits or to get into a new business. It’s still uncertain what I’ll do, but I know an investment where I can’t fail, investing in my education.
I started learning AI (artificial intelligence) and it’s a fun journey, I’m taking baby steps learning the math behind it and I may come up with some demos or articles in the near future if I’ll find the time to do so.