August 5, 2008, 6:00 am

My Smith Manoeuvre July Update

by: The Financial Blogger    Category: Smith Manoeuvre
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The month of July was probably one of the worst months on the stock market since the beginning of the year. My overall portfolio (including registered, non-registered assets along with my smith manoeuvre investments) were showing a +5% return since the beginning of the year. Lately, I am now down by 0.50%. You can deduct that my Smith Manoeuvre portfolio followed that trend to drop at a very small (MINUS!) 2.9% return since my very first contribution back in February 2007.

Even thought a part of my mortgage is tax deductible, the market fluctuations make the strategy useless on a short term basis. Some months I am making money and others, like now, I am losing money. I am telling you, investing is not for the soft hearted 😉

So in my Smith Manoeuvre account I have:

178.278 shares of National Bank Dividend Fund for $2879.19

116.444 shares of Sprott Canadian Equity Fund for $5065.31

Total portfolio worth $7,946.87 as of August 4th.

In my previous update, I said that I would purchase the Omega International Consensus fund. I feel ashamed to say that it’s not done yet. What is the reason? Simply lazyness. In fact, I just have to pick up the phone as changed my periodic investment strategy. The overall operation with the brokerage firm would take about 5 minutes. Too often, we let our financial sins take over our investment strategy.

Committing to your investment plan is tough but rewarding. This is why writing it down and have it on a piece of paper is relevant. Every trimester, you should look at your plan and determine if you are following it. It will also help you out seeing if you reach certain stage where modification in your portfolio is requested.

I am not talking about changing your investment strategy every time you get your investment statement and make stupid moves according to the market. I am talking about following the strategy you already designed for the next few years.

I think you should review your investment strategy on a yearly basis and make your decision according to your need and your financial situation; not according to what is going on the market!

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