June 2024 was the blow off prime on this bull market that noticed markets obtain all time highs over and over. The bull market that has been raging since November 2023 confirmed no indicators of subsiding in June of 2024. Inflation stored trending down and expectation for fee cuts continued to extend. NVidia utterly dominated your complete world by making a ten for 1 break up and promptly rallying 10% the day of the break up (and 10% earlier than the break up). Nvda turned the largest firm surpassing Microsoft and Apple and it seems to be prefer it’s right here to remain.
![Scooter sifnos greek islands](https://johnnyafrica.com/wp-content/uploads/2020/08/DSCF3672.jpg)
For those who haven’t already learn my posts earlier than, I achieved Monetary independence again in late 2020 early 2021 with a portfolio of roughly $1.3m invested in primarily ETFs. This ballooned to $1.7m in the course of the peak of the markets in early 2022 earlier than coming again all the way down to Earth later in 2022.
![Sifnos artemonas town cyclades Greece](https://johnnyafrica.com/wp-content/uploads/2020/08/DSCF3706.jpg)
![Sifnos christopypagi beach restaurant greece](https://johnnyafrica.com/wp-content/uploads/2020/08/DSCF3645.jpg)
This put up will probably be a part of a month-to-month sequence of portfolio updates that summarizes how my portfolio carried out, what trades I executed, what my month-to-month bills had been, and my basic outlook on the financial system/markets. That is not at all monetary recommendation so don’t look have a look at me for sage recommendation. I make silly trades and make even worse losses fairly steadily.
That is merely the efficiency of my portfolio and the way it has carried out on a month to month foundation.
Month-to-month Highlights – June 2024
Internet value is close to $1.9m as of June 2024 Month finish+$80k for the monthSpent a couple of weeks in Da Nang, Vietnam to get some fits made. Da Nang has shortly grow to be a premier digital nomad vacation spot and it’s not exhausting to see why. This stunning seashore metropolis is extremely low-cost and vibrant. Completed the month touring across the Greek islands as a result of who wants a cause to go to Greece once more?!
Market Strikes
What’s in my portfolio?
My portfolio is sort of easy and straight ahead. I’ve my holdings primarily unfold out between a couple of ETFs, fastened revenue, and numerous single identify shares.
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Mounted Earnings
Because of rising charges, I’ve additionally allotted a small a part of my portfolio (<5%) to fastened revenue merchandise. I’ve been buying 5.5% yielding treasury payments with a 3-6 month expiry. I at the moment have about ~$60k invested in a 3-mo T-Invoice that can expire in June 2024.
After expiring mid June, I purchased one other 3 month treasury paying about 5.4% expiring in mid September.
That is assured cash with zero threat which I made a decision to reap the benefits of whereas ready for higher entry factors. Nonetheless, it looks like this cash most likely would have been higher used simply shopping for the market however that is alternative price I’m prepared to sacrifice.
I additionally bought I-Bonds in 2022 on the top of inflation peak when I-Bonds had been paying 9.5%. The charges have come down considerably since then as inflation itself has come down. The optimum time for me to promote these bonds had been on Dec 1, 2023 as that may have been the final month I used to be eligible for the upper fee of 6.4% (nonetheless increased than what treasuries paid). As you will need to forfeit three months of curiosity upon withdrawal earlier than 5 years, in whole my blended fee of return was round 8% for 15 months which is unquestionably one thing I can stay with.
ETFs
Once more, my main holdings are in a couple of ETFs. My main holdings are in VTI, VGT, and VCR. I’ve all the time been a giant proponent of massive tech and have been closely invested within the Nasdaq for over a decade. This has paid off very nicely for me given the huge bull market of the 2010s and is basically what allowed me to FIRE so shortly.
I used to carry extra dividend producing shares as I used to be actually into one of these investing at a time frame. I at the moment don’t have many dividend particular ETFs as I favor progress greater than revenue. This type of goes in opposition to the ethos of economic independence however I find the money for coming in from different sources that I don’t must focus a lot on revenue.
I added to my ETF positions in June 2024 regardless that the markets solely dipped close to the top of the month.
Single identify shares
Among the single identify shares I personal are the next
TSLABRK.BNFLXRITMASMLANETARES
These single identify shares make up lower than 10% of my whole portfolio. I are likely to not purchase a lot single identify shares anymore as there’s no level to tackle pointless dangers once I’m already so diversified with my ETFs.
Actual Property
I at the moment personal no actual property. I used to personal property within the US however have bought it in 2022 earlier than charges began rising. I’m not a giant fan of actual property. Whereas it undoubtedly could be a good funding, I don’t suppose it beats investing within the markets. As well as, actual property is very illiquid with excessive transaction prices that few individuals take into account.
Lastly, as somebody that travels world wide and doesn’t wish to be tied down to 1 location, actual property doesn’t make sense as managing it from afar creates a bunch of complications. I a lot favor to have my cash liquid and within the inventory market.
June 2024 was the almighty bull of all bulls. If the previous few months hadn’t already been sufficient of a bull run, June took it into overdrive. Whereas there was a small dip on the finish of June, this was shortly purchased again up with none challenge. Markets rallied to new all time highs in the course of the month led by the one and solely Nvidia. This firm has skilled a Bitcoin-esque rise within the final yr rising 200% within the final yr and a few 3000% within the final 5 years. Completely ridiculous.
Nvidia eclipsed the market caps of Microsoft and Apple and doesn’t appear to be it’s shedding any momentum anytime quickly. Ahead PE is barely 40 which is excessive by historic requirements, however not unreasonable for a reputation like Nvidia.
As you’ll be able to see from the under screenshot which I all the time monitor utilizing the CME Fed Fund Futures web site, fee cuts are introduced ahead and now the market is pricing in a reduce in Sep 2024. I had all the time anticipated that this is likely to be a chance given it’s an exlection yr and Jerome Powell will wish to present one thing within the fee reducing path, most likely as a method to assist out Biden in beating Trump. Trump roughly owned Powell throughout his final presidential time period and solely God is aware of what he would do with Powell in a second time period.
![](https://johnnyafrica.com/wp-content/uploads/2024/06/image-1-29.jpg)
In June 2024, markets rallied 6-7% on the Nasdaq (Nasdaq is up virtually 30% YTD) and about 4% on the S&P 500.
Many market analysts are calling for a market correction in July or some form of sector rotation out of tech however except the Fed utterly adjustments course on its fee reducing trajectory, I simply don’t see what the catalyst for these items could be. Who is aware of, simply preserve shopping for and transfer on!
Market Worth of Portfolio
Here’s a historical past of my portfolio worth. As you’ll be able to see, it’s moved according to the markets as must be the case since most of my holdings are in ETFs that observe the S&P 500 and the Nasdaq.
In whole, my portfolio is sitting someplace round $1.86m which additionally contains money and stuck revenue positions. This most likely be over $1.9m if it weren’t for my lined name MTM losses.
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Trades executed for the month of June 2024
June was a quiet month for my buying and selling regime. I purchased some extra of VGT on dips (which weren’t many) and slowly simply letting the markets trip. No lined calls or money secured places within the month of June.
Abstract of inventory and ETF purchases
Portfolio withdrawals and bills
Withdrawals from my portfolio is a crucial a part of the monetary independence ethos. The 4% withdrawal fee rule is likely one of the most important ideas of the FIRE motion which I attempt to adhere to. Typically, I favor to promote from my portfolio when markets are close to or in any respect time highs to seize, and solely once I really need the money.
For the month of June 2024, I traveled to Da Nang in Vietnam to get fits made. This space of Da Nang and Hoi An are identified to be a number of the greatest and least expensive customized go well with making spots on this planet. I spent virtually two weeks hanging out in Da Nang trying out the digital nomad scene. Da Nang is the digital nomad hotspot of Vietnam and one it’s not exhausting to see why. It’s most likely the most cost effective place I’ve ever been to so far as digital nomad locations. There may be wonderful meals available, seashores, and nice lodging choices.
After Vietnam, I went to the Greek Islands in Europe as a result of summer season in Europe is simply the best possible. The Cyclades are my favourite islands in Europe so I needed to get my repair of the islands in!
![Sifnos Kastro church](https://johnnyafrica.com/wp-content/uploads/2020/08/DSCF3522.jpg)
I made no withdrawals from the portfolio as I had sufficient money coming in from my weblog in addition to leftover money from different sources. My weblog generates cash each month to the tune of $3-4k and I cowl precisely how I earn cash from running a blog in different posts.
Dividend Earnings
For June, I collected a complete of $3,490 in dividends. I sometimes reinvest my dividends which has served me nicely in the course of the market downturn of the final yr or two. I believe I’ll most likely cease reinvesting dividends within the close to time period as I wish to preserve a money pile whereas shares are in any respect time highs to reinvest when markets finally dip.
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