Wow what a month for my nestegg. Nearly $250,000 increase in a single month and my individual stock performance was tremendous returning nearly 30% for the month! All in all this gets me back to the beginning of February before the pandemic started – which is pretty amazing and totally unexpected and also represents an all-time month end high for my nestegg.
This totally reinforces that if you try to time the market you are an idiot. I’ve been actively investing for 16 years now and have been through financial crisis in 2008 and if you asked my opinion I would have said stocks for sure would have continued to fall and stagnate based on the repercussions of COVID and would have been very confident in that statement. The next logical thing you would think would be to pull the money out of the market and wait until things got better right? WRONG!!
No one can time the market and had I tried by using my experience and intellect I would have missed out on the best month of stock market gains in my lifetime that happened on absolutely no positive news. Trying to time the market is a fools errand and guarantees that you will never get anywhere near market returns much less outperform the market as I did this month by sitting there and just riding the storm.
Now do I think this is over and do I think that things will likely fall a significant amount yet again. You bet it seems entirely logical that the market will have a massive drop due to the havoc being wreaked throughout the world economy due to COVID and it doesn’t look like it’s going to end anytime soon. Will I do anything dumb based on that hunch? Nope 🙂
Here is some very relevant articles I wrote heading into the last great market crash
Fidelity Taxable – $3,694.94 (+23.77%)
Taxable Account- $102,453.40 (+32.75%)
Private Stock $72,000 (+0.00%)
Traditional Rollover IRA – $52,797.63 (+27.74%)
My Roth IRA – $416,946.43 (+31.51%)
Wife Roth IRA – $248,898.09 (+26.94%)
Wife 401k – $4,309.63 (+11.00%)
Traditional 401k – $499,302.81 (+12.71%)
Roth/Traditional % = 47.55% (tax free)
Total Retirement Nest Egg $1,400,402.93 (+21.40%)
Retirement Salary (4%) $56,016
Monthly Contributions $3,480.62(401k) $500(Fidelity Taxable)
SP500 Performance +12.68%
My Monthly Investment Performance +21.06% (+8.38% vs SP500)
My Monthly Individual Stocks Performance +29.92% (+17.24% vs SP500)