March 2020 Net Worth Update

by Evan

For the first time in almost a decade I have decided not to do my net worth statement this month. I was complaining to The Wife last week about the shit show that was the market the past week, and she said, “just ignore it for a month or two, isn’t that you would tell someone?” Well of course, I told her I would ignore making any drastic moves (other than investing some sideline cash of course), but how could I ignore the results when I calculated our net worth? Her response was brilliant – so don’t do an update.

I am well aware that my net worth updates are mainly for me, especially when I don’t itch that financial voyeurism by actually providing a number. So with that said I am going to take a month off, after 120 or so net worth updates, don’t I deserve it?

Why I am Taking a Month Off

I have said it in the past, my net worth is extremely correlated to the market and last week was a particularly rough week for the broad markets (Graphs below are all S&P500). I particularly take it on the chin during pull backs because of my naked short puts.

The last time I felt this uneasy in the market was December 2018:

It is only when we take the larger picture into account that we can see the forest through the trees (12/31/2018 to 3/2/2020):

If I had a gun to my head and had to give a guess we have some volatility and choppiness ahead of us, and I actually don’t mind that. Sometimes you win those coin flips and get a dividend reinvestment at a low, or more likely in my case, it gives me a chase to really spread my wings when it comes to naked puts.

I believe chop is out there on the horizon because of a mixture of an all time high mixed with an international pademic regarding coronavirus. Almost like the market is looking for a reason to pull it’s self back. It felt like this during the months where Greece, a country with a GDP of New Jersey, was going to take down the entire world’s economy.

When, or if I ever read this rambling, self-justifying post ever again, I’ll be shocked if I don’t laugh at the notion of coronavirus taking out the world. Who remembers when SARS or Bird flue was the end of civilization as we know it? Maybe I’ll be wrong one day.

Notwithstanding, I look forward to an April Net worth statement!

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2 comments

EnoughWealth July 15, 2020 - 11:01 pm

Probably time to calculate your monthly NW figures for Mar-June. Given the recovery in the markets after the March lows, its probably looking OK now. And its nice to be able to look back and put things in perspective. I remember how bad ‘black friday’ was back in ’87, and watching years of wealth accumulation evaporate during 2008/9, but even they look a lot less significant with the benefit of hind-sight.

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Evan July 17, 2020 - 8:57 am

You know what? You are absolutely correct! I will jump back on the horse for Aug 1st

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