June 2024 FIRE Portfolio Replace: Blow Off High!

June 2024 was the blow off prime on this bull market that noticed markets obtain all time highs again and again. The bull market that has been raging since November 2023 confirmed no indicators of subsiding in June of 2024. Inflation stored trending down and expectation for fee cuts continued to extend. NVidia utterly dominated your complete world by making a ten for 1 cut up and promptly rallying 10% the day of the cut up (and 10% earlier than the cut up). Nvda turned the most important firm surpassing Microsoft and Apple and it seems to be prefer it’s right here to remain.

In the event you haven’t already learn my posts earlier than, I achieved Monetary independence again in late 2020 early 2021 with a portfolio of roughly $1.3m invested in primarily ETFs. This ballooned to $1.7m throughout the peak of the markets in early 2022 earlier than coming again right down to Earth later in 2022.

This publish will probably be a part of a month-to-month sequence of portfolio updates that summarizes how my portfolio carried out, what trades I executed, what my month-to-month bills had been, and my normal outlook on the financial system/markets. That is by no means monetary recommendation so don’t look take a look at me for sage recommendation. I make silly trades and make even worse losses fairly steadily.

That is merely the efficiency of my portfolio and the way it has carried out on a month to month foundation.

Month-to-month Highlights – June 2024

• Web value is close to $1.9m as of June 2024 Month finish
• +$80k for the month
• Spent just a few weeks in Da Nang, Vietnam to get some fits made. Da Nang has rapidly develop into a premier digital nomad vacation spot and it’s not laborious to see why. This lovely seashore metropolis is extremely low cost and vibrant. Completed the month touring across the Greek islands as a result of who wants a purpose to go to Greece once more?!

Market Strikes

What’s in my portfolio?

My portfolio is sort of easy and straight ahead. I’ve my holdings primarily unfold out between just a few ETFs, mounted revenue, and varied single identify shares.

Fastened Earnings

As a result of rising charges, I’ve additionally allotted a small a part of my portfolio (<5%) to mounted revenue merchandise. I’ve been buying 5.5% yielding treasury payments with a 3-6 month expiry. I at the moment have about ~$60k invested in a 3-mo T-Invoice that can expire in June 2024.

After expiring mid June, I purchased one other 3 month treasury paying about 5.4% expiring in mid September.

That is assured cash with zero threat which I made a decision to reap the benefits of whereas ready for higher entry factors. Nevertheless, it looks as if this cash in all probability would have been higher used simply shopping for the market however that is alternative value I’m prepared to sacrifice.

I additionally bought I-Bonds in 2022 on the top of inflation peak when I-Bonds had been paying 9.5%. The charges have come down considerably since then as inflation itself has come down. The optimum time for me to promote these bonds had been on Dec 1, 2023 as that may have been the final month I used to be eligible for the upper fee of 6.4% (nonetheless larger than what treasuries paid). As you have to forfeit three months of curiosity upon withdrawal earlier than 5 years, in complete my blended fee of return was round 8% for 15 months which is unquestionably one thing I can dwell with.

ETFs

Once more, my main holdings are in just a few ETFs. My main holdings are in VTI, VGT, and VCR. I’ve all the time been an enormous proponent of huge tech and have been closely invested within the Nasdaq for over a decade. This has paid off very properly for me given the large bull market of the 2010s and is basically what allowed me to FIRE so rapidly.

I used to carry extra dividend producing shares as I used to be actually into one of these investing at a time frame. I at the moment shouldn’t have many dividend particular ETFs as I desire development greater than revenue. This sort of goes towards the ethos of monetary independence however I have the funds for coming in from different sources that I don’t have to focus a lot on revenue.

I added to my ETF positions in June 2024 regardless that the markets solely dipped close to the tip of the month.

Single identify shares

A number of the single identify shares I personal are the next

• TSLA
• BRK.B
• NFLX
• RITM
• ASML
• ANET
• ARES

These single identify shares make up lower than 10% of my complete portfolio. I are likely to not purchase a lot single identify shares anymore as there’s no level to tackle pointless dangers once I’m already so diversified with my ETFs.

Actual Property

I at the moment personal no actual property. I used to personal property within the US however have bought it in 2022 earlier than charges began rising. I’m not an enormous fan of actual property. Whereas it positively is usually a good funding, I don’t suppose it beats investing within the markets. As well as, actual property is extremely illiquid with excessive transaction prices that few folks contemplate.

Lastly, as somebody that travels around the globe and doesn’t wish to be tied down to 1 location, actual property doesn’t make sense as managing it from afar creates a bunch of complications. I a lot desire to have my cash liquid and within the inventory market.

June 2024 was the almighty bull of all bulls. If the previous few months hadn’t already been sufficient of a bull run, June took it into overdrive. Whereas there was a small dip on the finish of June, this was rapidly purchased again up with none subject. Markets rallied to new all time highs throughout the month led by the one and solely Nvidia. This firm has skilled a Bitcoin-esque rise within the final yr rising 200% within the final yr and a few 3000% within the final 5 years. Completely ridiculous.

Nvidia eclipsed the market caps of Microsoft and Apple and doesn’t seem to be it’s dropping any momentum anytime quickly. Ahead PE is simply 40 which is excessive by historic requirements, however not unreasonable for a reputation like Nvidia.

As you possibly can see from the beneath screenshot which I all the time monitor utilizing the CME Fed Fund Futures web site, fee cuts are introduced ahead and now the market is pricing in a minimize in Sep 2024. I had all the time anticipated that this may be a chance given it’s an exlection yr and Jerome Powell will need to present one thing within the fee reducing path, in all probability as a method to assist out Biden in beating Trump. Trump roughly owned Powell throughout his final presidential time period and solely God is aware of what he would do with Powell in a second time period.

In June 2024, markets rallied 6-7% on the Nasdaq (Nasdaq is up virtually 30% YTD) and about 4% on the S&P 500.

Many market analysts are calling for a market correction in July or some kind of sector rotation out of tech however except the Fed utterly modifications course on its fee reducing trajectory, I simply don’t see what the catalyst for these items can be. Who is aware of, simply hold shopping for and transfer on!

Market Worth of Portfolio

Here’s a historical past of my portfolio worth. As you possibly can see, it’s moved consistent with the markets as needs to be the case since most of my holdings are in ETFs that observe the S&P 500 and the Nasdaq.

In complete, my portfolio is sitting someplace round $1.86m which additionally contains money and glued revenue positions. This in all probability be over $1.9m if it weren’t for my lined name MTM losses.

Trades executed for the month of June 2024

June was a quiet month for my buying and selling regime. I purchased some extra of VGT on dips (which weren’t many) and slowly simply letting the markets journey. No lined calls or money secured places within the month of June.

Abstract of inventory and ETF purchases

Portfolio withdrawals and bills

Withdrawals from my portfolio is a crucial a part of the monetary independence ethos. The 4% withdrawal fee rule is likely one of the major ideas of the FIRE motion which I attempt to adhere to. Typically, I desire to promote from my portfolio when markets are close to or in any respect time highs to seize, and solely once I really want the money.

For the month of June 2024, I traveled to Da Nang in Vietnam to get fits made. This space of Da Nang and Hoi An are recognized to be a number of the finest and most cost-effective customized go well with making spots on this planet. I spent virtually two weeks hanging out in Da Nang trying out the digital nomad scene. Da Nang is the digital nomad hotspot of Vietnam and one it’s not laborious to see why. It’s in all probability the most cost effective place I’ve ever been to so far as digital nomad locations. There may be superb meals available, seashores, and nice lodging choices.

After Vietnam, I went to the Greek Islands in Europe as a result of summer season in Europe is simply the best possible. The Cyclades are my favourite islands in Europe so I needed to get my repair of the islands in!

I made no withdrawals from the portfolio as I had sufficient money coming in from my weblog in addition to leftover money from different sources. My weblog generates cash each month to the tune of $3-4k and I cowl precisely how I earn cash from running a blog in different posts.

Dividend Earnings

For June, I collected a complete of $3,490 in dividends. I sometimes reinvest my dividends which has served me properly throughout the market downturn of the final yr or two. I believe I’ll in all probability cease reinvesting dividends within the close to time period as I wish to hold a money pile whereas shares are in any respect time highs to reinvest when markets ultimately dip.