October 2017 Net Worth

From September to October there was a big loss on my portfolio. $5,027 to be exactly.

But does it mean i lost money? Well, kind of. If i'm talking about my portfolio in dollars, then yes, i lost money, but this is all due to the exchange variation.

When i look to my portfolio on Brazil's local currency, then the result is a R$8,000 (brazilian real) gain, or $2,400.

So this kind of variation will be common, and it doesn't scare me now, but as time passes, my idea is to start investing in the US stock market, as a form of protection against any kind of depreciation that can happen against the brazilian real.

So, my portfolio for October:

Government bonds: $59,813

Investment funds: $48,826

Corporate bonds: $89,108

Other loans: $21,972

Total: $219,719

First thing you may think odd is the lack of stock market on my portfolio. This is something unusual in the brazilian market.

Historically, our government interest rates have been one of the highest in the world, just as an example, 18 months ago it was at 14.25%. Now we are at a more civilized rate, as i write this post it is at 7.50%.

All this high rates have contributed to make brazilian lazy on taking risks. The thought is the following: "why should i risk myself on the stock market while i can invest in a government bond and get a 14% annual return?".

And this has caused the brazilian stock market to be way beyond its potential, since only 600k people invest on it, in a country with almost 210 million people.

Along my next posts i will comment about each investment, and also about my savings, work, budget and other subjects.