Monday, January 20, 2014

2000, 2008 and Recovery

I recently was wondering how well I did through that last two bear markets to the present. I had realized I was doing fine, but it is fun to check into it. I do not keep records for shorter periods that monthly, so I am using the closes month ends for the dates for the 2000 bear market's top and low and the 2008 bear market's top and low.

I know that the TSX does not include dividends and a large part of my portfolio is dividends. However, the thing is that I am living off my dividends, so I am basically taken out all my dividend income to live on. When I first stopped working in 1999, I was taking out more than my dividends and now I am taking out a bit less. Overall, I have taken out just slightly more than I have earned in dividends.

What my calculations show is that I did not crash as much as the TSX in either bear market. For the 2000 bear I was down 30.92% and the TSX was down $45.06%. For the 2008 bear I was down 30.81% and the TSX was down 39.89%.

I recovered better out of the 2008 bear than the 2000 bear. At the top in 2008 the TSX was up from the 2002 low by 30.82% and I was only up by 17.90%. If you look at the TSX high in 2008 compared to today, the TSX is still down by 7.43% to the end of December 2013, while I am up 37.79%.

Date TSX My Portfolio
Value YOY Y to Beg. YOY Y to Beg.
31-Aug-00 11,248
30-Sep-02 6,180 -45.06% -45.06% -30.92% -30.92%
30-May-08 14,715 138.11% 30.82% 70.68% 17.90%
27-Feb-09 8,845 -39.89% -21.36% -30.81% -18.42%
31-Dec-13 13,622 54.01% 21.11% 99.14% 62.46%
30-May-08 14,715     
27-Feb-09 8,845 -39.89% -39.89% -30.81% -30.81%
31-Dec-13 13,622 54.01% -7.43% 99.14% 37.79%

On my other blog I am today writing about of Bank of Nova Scotia (TSX-BNS, NYSE-BNS)... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

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