Net Worth Review: April 2007 (Woo Hoo!!!!!!!)

Every month, I give a bit of detail on how my net worth did the prior month. This post will detail how I did in April 2007.

In April 2007, the S&P 500 was up 4.33% and my net worth was up an amazing 5.14% during the same time. Wow!!!! What a change from last month! My net worth is now up 6.00% so far for the year and on track to be up 17.99% for the year if it keeps going at this rate. I know I'd be happy with an 18% increase for the year.

A few things contributed to my increase:

• The stock market, of course. As you all know, index funds are my main investments, so as the markets goes, I go.

• In particular, back at the end of February when the market was dropping like a rock, I told you all that I went against the grain and invested even more into the market. Specifically, I bought a chunk of Vanguard's Index 500 on February 28 at $129.93. These same shares ended April at $137.69 per share -- up 5.97% in two months. That's an annualized return of 35.83%. Not bad, huh?

• I was able to save a good portion of my salary this month (in addition to making my 401k contribution) since last month I paid off my charitable pledge. So I took the money I would have given this month and socked it away in savings too.

Overall, it was a great month -- I'd like to see several more like it this year. ;-)

Comments

[Moneymonk]

what are your index funds?

[Q at $1 Million to My Name]

Wonderful news! Keep chuggin along.

[Dean in Des Moines]

How is it that you calculate this; the whole net worth thingy. Annualized rates? What's the formula for that?

[FMF]

I work mine out on a spreadsheet -- but there's a (complicated) formula for doing so. Google it and I'm sure you'll find it.

[Anthony]

Don't count your chickens before they hatch.

My contention is that this economy is facing some major hurdles:

1. Crashing Housing Market
2. Inflation that can't be contained
3. Little/no saving by most people; lots of debt (personal and government)
4. Falling corporate profits/sluggish sales
5. Weakening dollar
6. Evidence of "bubbles" in other stock markets: China

If you want to throw everything you own into the market, that is definitely risky at this point in the game...there are so many imbalances in the market right now, that most people would be wise to take some profits off the table. Index funds proved to be a horrible investment from 1966-1982 during stagflation, a situation that seems more likely by the day in the here and now.

Plus, even with bad news, the stock market keeps going up...seems a lot like 1999 to me. Buyer beware!

[Skott]

The market will go up. Then it will go down. But not necessarily in that order.