INVESTING FOR THE 21ST CENTURY

We're like MythBusters, only for money! Follow along as we figure out the best ways to make money online. We investigate the latest and greatest ways to make money online. Follow along as we put time and resources into robo-advisors, P2P lending, crowdfunding, crypto security tokens and anything else we can find and report on our results.

  • Fiscal Frontiers

OCTOBER 2018 FISCAL FRONTIERS UPDATE: MOSTLY (BUT NOT ALL) BAD


In the future, we will be giving routine updates on how money all over the world is doing. It’ll take some time to work out a normal formatting for this. This is our first crack at it!


In summary, October 2018 was a frustrating mixed bag for investors and for us. Let's start with the good! Our peer-to-peer lending experience, before shifting to the not so good (i.e. any money we had in the market).


Peer-to-peer lending:


Throughout October, we only had our money in one P2P lender: Lending Loop. As of October 31, 2018, we had issued total loans of $775, however, only $175 of those loans were issued in September and thus old enough to have paid interest after 30 days. Accounting for this, our $175 of loans paid us $2.21 of interest income, which was a return of 1.26%.


By the end of November, we should be fully invested in Lending Loop, which will be exciting. However, even in November we should see a big jump from $2.21, as $775 of loans will be earning income (over 4 times as much).


We are trying to get some funds into Mintos, so look forward to that, hopefully, in our November update, too!


Robo investing:


Throughout October, we only had our money in one robo investor: WealthSimple. Unfortunately, the end of the month balance had us in the red: 4.7% down (from $994.47 to $947.73). Under the next heading, you’ll see that this actually wasn’t that bad compared to stock market investing generally.


We had money in Portfolio IQ with Questrade for the last week of the month, but we will wait until next month to include them in our tracking, to give us a better sample size.


The Stock Market


One of those months that investors dread. The market trends were all pointing down, which not good for the majority of investors. The stock market was a bumpy and bloody ride for investors in October:

  • The TSX dropped 6.5%, from 16,073.10 to 15,027.30

  • The S&P 500 dropped 6.9%, from 2,913.98 to 2,711.74

  • The Dow dropped 5.1%, from 26,458.31 to 25,115.76

However, even more importantly, the day-to-day movement was highly erratic. Many individual stocks were doing their best impression of a yoyo, bouncing up and down from day-to-day. Look at Alphabet (formerly Google), for one example: from October 24 to 31, it was down ~4.5%, then up ~4.5%, then down ~9%, then up ~9% then down ~10% and closed the month up ~10%. What a ride.


In our post next week, we will be discussing a trio of ETFs we will be keeping track of, but as a preview, they gave mixed results in October:

  • VOO (our S&P 500 tracker, investing in the S&P 500 to mirror that index), did pretty much bang on with what the S&P 500 (above) did, dropping 6.8%, which isn’t surprising, being as it is meant to mirror that result

  • VT (our global equity tracker, investing in stocks from all over the world), did pretty horrible, dropping 7.8%

  • VGSH (our risk free tracker, investing in very low risk government debt), was unsurprisingly, pretty safe, dropping only 0.05%, but earning a monthly dividend of $0.102, which, when accounted for, actually puts that stock in the positive during October, up 0.12%

Here's hoping things look up in November!

 
 

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