Sweat Your Assets Monthly Digest | December 2023

Hi ,

It is the end of 2023. 

Like many of you, I go through my Rituals for the end of the year:

1. The most exciting is the New Year's resolution. As anticipated, I plan to (a)"invest" in more active outdoor time. As a life hack, I have pre-loaded the resolution, starting it in December (on high motivation)...while going full charge in January. (b) My gym coach has already pumped me up with a new series of morning exercises. If you don't use it, you lose it! (c) I plan to spend more time with motivated people. It is a win-win, to say the least.
2. Health Check. I chose to do it each year before Christmas. It is impossible to forget. It is also a reminder to enjoy Festive food and drinks moderately.
3. Financial Check. I check the balance of my accounts every month, but the annual review of all my accounts with the analysis of my net worth is a special treat by the end of the year. If you do the same, you know the feeling. If you need a Net Worth calculator, check my Excel Net Worth Tracker (free download here; the password to download any freebie is 2023_SYA)
4. I look at the books I bought and read during the year. I tend to buy more than I can read. It was not the case in 2023. With few exceptions, I focused on the books in my library. I plan to share new reviews through Posts and Videos. Stay Tuned!

The end of the year is not only a checklist. It is also a symbolic moment, if you choose, to turn the page and write your new chapter in your biography. By all means, test your dreams and test your plans by taking the first steps in January 2024. 

"All life is an Experiment" (Ralph Waldo Emerson).

MARKET BAROMETER

An eye view of Stock Market Indicators, as of December 29, 2023:

[This month | previous month | previous two months | % changes over five years].  

• VIX (volatility index) - the fear gauge: 12.45 | 12.65 | 19.64 | -41.77% (Fear perception is strongly decreasing).
• US Fed Funds Rates: 5.5 (current target between 5.25 and 5.50)
• ECB Interest Rates: 4.5 
• S&P 500: 4,769 | 4,554 | 4,168 | + 88.39% (Almost Record High).
• S&P 500 P/E Ratio: 26.43 | 25.17| 23.83. (Historically, the median value is 17.86, with a typical range between 19.33 and 27.91). 
• BND: USD 73.55 | 71.29 | 68.68 | -7.41% (The bond market still suffers from high interest rates).
• VNQ: USD 88.36 | 80.58 | 71.86 | +18.89% (positive real estate trend in the US). 
• GLD: USD 191.17 | 189.26 |186 | +57% (Gold value is growing).

December's investment market Outlook was extremely positive. Still, It is hard to say why. Some emerging markets did not meet their debt deadlines; several developed countries reached national debt records; economies are not performing particularly well. Still, with inflation perceived as decreasing and a mild optimism toward interest rate cuts among central banks, investors ended the year with a positive sentiment, clearly shown in several asset prices. I cannot complain. Chances are, you had a good run, too, in 2023. It is always a good idea to be well-diversified...while celebrating!

QUOTES

• Nobody stumbles into a well-lived life. It has to be cultivated. Reflection and review are critical. James Clear
• To get what you want, deserve what you want. FS (Farnam Street)
• I came to realize that the object of life is not prosperity as we are made to believe but the maturity of the human soul. Aleksandr Solzhenitsyn
• When you are cold, don't expect sympathy from someone who's warm. Aleksandr Solzhenitsyn
• Human beings are born with different capacities. If they are free, they are not equal. And if they are equal, they are not free. Aleksandr Solzhenitsyn

SWEAT YOUR ASSETS PODCASTS

Check out my latest Podcast Episodes. 

Until Next Year...Keep it Real and Sweat Your Assets.

Alessandro BARONI

If this newsletter was forwarded by a friend, and you would like to subscribe for free, you can do it here.