Our net worth took a great leap forward in September, thanks to the bull run in the stock market and a lower-than-expected tax on my annual cash bonus. With the September monthly gain of over $47k, the largest in three years, we have grown our assets by almost $100,000 since the beginning of the year.
We are maintaining a cautious stance in managing our investments, parking almost 60% of our portfolio in safest money market accounts or alike that yield between 1% and 2%. Of course, this is not an offensive strategy, and certainly means some missed opportunity in the recent bullish market environment, but it also gives us many good nights of sleep. With so many clouds over the world economic, we are not seeing a clear risk worth taking at the moment.
After all, we probably didn't miss a lot -- the stock market ended the September at the level where it started the year, but those with a committed stock holding probably had a rollercoaster ride so far.
1) With the declined yield in intermediate and long-term bonds, we are seeing a deteriorating risk/reward profile for fixed income investment. Hence, we sold a large chunk of our TIPS holding at VIPSX in September, hence the decline in USD fixed income category and the increase in USD-denominated cash.
2) I have received the annual cash bonus. Even though we accrued the after-tax amount of the bonus in the "Receivable" line last month, the actual after-tax payout is higher than we expected, resulted in an imbalanced decrease in Receivable line and increase in the CNY cash line.
3) I'm getting extremely busy with my day-time job lately, as I'm taking an ownership to launch a new brand in a larger market in November. I cannot wait for it to pass and enjoy our scheduled Christmas vacation in Guam.