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

For the month of May from 5/1/07 to 6/1/07,

1. Net worth is up by 0.93%.
2. Value of my company holdings is down by -11.78%. That doesn’t feel too good especially when the stock market is breaking new highs every week if not everyday.
3. Everything else excluding my home and cash is up by 3.86%.
4. If including cash in #3, it’s up by 2.93%.

I’m raising more cash as you can see from “My NetWorth” page. This month is not a good month for precious metals & goldminer stocks at all, except the last 2 to 3 days when XAU/HUI had a significant rally.

With stock market breaking new highs, my large cash position seems to be over-conservative. As I have commented last month about doing a cash-out refinance from my home equity in preparation for a potential coming low, I stopped short of going through the refinance deal. Everytime (for the third time in the last two years) when I am so close of doing an actual refinance, I am right at the low point in bond yield/mortgage rate. I wonder whether I would make a better bond trader than a stock trader.

My asset allocation plan is also not working very well this month (or I should say this year). My company stock really really sucks. It is probably lagging the general market by some 25%. My total net worth would be breaking record high if my company simply tracks the market performance. So far, I’m still about 3.4% below the all time high of my net worth on 2007-04-26.

In any case, I’m not ready yet to ditch my bearish stand on the general stock market. Is that the reason for this stock market not falling yet because this “last bear” has not turned bullish yet? Maybe. We shall see.

By the way, I have put back the daily update of my portfolio composition in “My Networth” page if you’re interested.

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