Our net worth retreated $4,421, or 0.5% in the month of June. In particular, our employee stock option account extended its distressed journey -- it has lost 75% of its value since the beginning of the year. Conversely, our investment overall fared well, led by a 13% surge in Berkshire Hathaway stock price and fixed income fund gains.
With 2010 half way through, our wealth tally ended the first half a tad below where it started. And after briefly claiming millionaire club membership for a couple of months, we have been back to the $900s for three months now.
It could have been much worse -- the overall market lost about 10% in the last six months, yet we still preserved most of our capital. Chances are, if more investment opportunities present themselves, we are in a very cash-rich position to take advantage of that.
• We currently have automatic purchase orders enabled for these funds:
• VGENX (energy stock) - $1,000/week
• VIPSX (inflation-protected bonds) = $1,000/week
• LSBRX (multi-sector bonds) - $1,000/week
• Various China equity funds - $700/week
• China lifted its unofficial peg on USD in June and so far Chinese Yuan (CNY) has appreciated about 1%. We expect about 5% further appreciation in the next 12 months. We have about 29% of our assets nominated in CNY and it will likely increase over time, but we don't expect to dramatically shift money from USD to CNY.
• We are actively looking at ways to deploy our cash. We still have a mild bearish view of the equity market. Some ideas we are exploring:
• AMJ (higher yields from Master Limited Partnership but with interest rate risk and credit risk with ECN structure),
• Way-out-of-money put on TLT (insurance against bond market flop),
• CYB (hedge against CNY appreciation).
• We are expecting a big payday in August and September when our annual bonus will be distributed and a lot of stock awards will be vested. For whatever it is worth, hopefully we can reclaim our millionaire status by the end of Q3.
• The family just finished a two-week vacation in Northeast and Florida. Highlights of the journey include Niagara Falls, Harvard University and Epcot.