Since I just did my last net worth update at the end of June I'm in a nice spot to have a good look at what the world wide market correction did last week to my holdings. So using my RRSP account as a model I had a value at the end June of $12,800.
The account current market value today is $13,200 with a book value of $13,300. I did recently add some money to this account in the last month. So overall I lost all my yearly profit and $100 of my own money during the correction. So I would estimate I'm down around $500 at the most or 3.8% in this account.
So given all the media coverage of the event and the coverage in various blogs you would think this correction was a bit bigger. Yet this is the reason you diversify your portfolio. So if the markets tank they will be hard pressed to take you portfolio too far down.
Overall my net worth change I would bet would be less than 2%. So next time they tell you the 'sky is falling' do try to keep the long view.
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4 comments:
Hey CD,
So far I took a pretty big hit from the market correction "from the peak" but overall my networth grew in July. The run up at the beginning of the month was pretty dramatic and although my "unrealized gain" dropped, it was a good time to buy some other securities I had my eye on.
The best thing I can do during the correction is keep my head about me. If you are a long term investor, just keep your eye on the goal line.
Q
I actually made money as I was short on some piggies.
That's your wife's RRSP isn't it?
Q,
Thanks for the advice. I think you have it that you have to keep your head on straight.
Anon,
No that would be my RRSP. See the following link.
http://blog.canadian-dream-free-at-45.com/2007/06/net-worth-june-update.html
CD
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