An Ode to March

This was the most volatile of months over the pat 54 months of tracking my portfolio.

In the 21 market days during the month of March 2014, I had 7 days of gains where on each of those days, the value of my portfolio that day rose by an amount greater than my monthly income.  I had 8 days of losses where my portfolio on those days fell by amounts that exceeded my monthly income.

Imagine that I took home $4,444 a month.  I had 7 days of gains where the gains on each of those days was greater than $4,444 and I had 8 days of losses where the losses on each of those days was over $4,444

The average over the past 12 months has been 4 days up greater than monthly income and 3 days down greater than monthly income.

So how did I do this month?  Well, down 4.06%, the biggest monthly loss since May 2012, both by value and by percentage.  The recent 22 months since May 2012 have been very, very kind to me.  Also, my annualized returns of the last 82 months have been 16 5/8% compounded.

I had the largest one day gain by value of the 18th March.  The gain that day was the equivalent of 3 13/16 months income.

The largest gain by percentage was on 16th May 2013, up 4 7/8 months income.  What goes up must come down, yes?  Well mean-revert seemed not to be working because the next market day, I was up another 4 7/16 months income.  The day after, Day 3, I was down 2 1/8 months income.

The largest one-day loss was during the “flash-crash” of May 2010 when I was down 9½% but I have had up days that was higher than that down day was lower.  Someday I am going to have an up day where I will be up greater than 9½%

Also this month, I had 7 market down days between the 7th and the 17th March where I was down 6 13/16%.  Not since October 2011 have I had steeper, 4+ down days in a row; where my portfolio was down 11.14% between 28th September and 4th October.

I consider myself to be very, very fortunate having escaped the Global Financial Crisis, simply because between 2000 and 2007, I had no regular job and no savings.  Today I have savings of 8 years of highest income.  Going by the EEE yardstick, my current net worth is 28 years of annual expenses.

I am truly blessed.


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