My 1st Million At 33 – yes, you can do it too

For the month of April from 4/1/07 to 5/1/07,

1. Net worth is up by 1.03%.
2. Value of my company holdings is down by -2.68%.
3. Everything else excluding my home and cash is up by 3.51%.
4. If including cash in #3, it’s up by 2.70%.

I’m staying put mostly in most of my positions, except nibbling on the short side here and there.

Last month I commented:

I’m not sure whether a higher high will come first before a lower low than the Feb/March low. Although my belief is that a lower low will materialize later this year, my conviction is wavered by the market strength. My current plan is still going short against financial/housing/general market and possibly adding some tiny long positions in energy or gold. But I will take my loss if the bull market runs away to the upside again.

A higher (marginal) high has materialized in the stock market. I am still watching intently over the markets for a potential low that I believe would come. I’m contemplating on whether to take cash out from my 401K or refinance my mortgage to get cash out ready for the next wave. That would more than double my existing large cash position, and I am not sure whether it would be wise to do that. Furthermore, it could really push my comfort limit in my emotional ability to handle the daily up-and-down for an even bigger portfolio. In contemplating to take cash out, my most serious concern is with the state of $USD which is pretty much at the edge of cliff. I think a gradual depreciation is the most likely outcome, and maybe with a last dead cat bounce above the 81 level. Even though a zero-point zero-fee (nothing out of my pocket) loan is like a no-brainer deal, I really have to put the money to work in order to take the cash out (for 30 years is at 6.125%, and for 15 years is at 5.875%, zero-cost).

By the way, in the last 5 to 6 calendar days, my net worth decreased by 4.51%, and my portfolio decreased by 2.35%. Otherwise, it would have been a terrific April month. Gold (stock) is going downhill and my portfolio has taken quite a big toll since the recent peak.

This month my saving is slightly negative due to thousands of extra taxes that I needed to pay to make up my capital gain from last year.

Special note: returns were calculated by subtracting 3.00% APR return of my cash position.