Kaderli's 90% S&P Portfolio

[Hydroman]

Billy and Akaisha have not posted here in a while.

I wonder if they are still 90% S&P Index Fund now? Pretty gutsy if they have stayed the course. I think I read that Billy went partly to cash during the 2000 wreck.

For those few here who do not know who the Kaderli's are you can check them out here:

Retire Early Lifestyle

 

[chinaco]

The market is still above it last low on March 11 2003. The S&P 500 index closed at 800.73. Which was about 51% of the previous peak. It took 7 years to recover.

They got through that OK.


If they have 10% in cash... between that and the dividends from the stock portfolio, their expenses are probably covered for several years.

They have a fairly low budget. I would not be surprised if the cash and dividends would enable them to live and not sell stock for 8 years or so.

 

[Nords]

Billy and Akaisha have not posted here in a while.

They're busy getting re-acquainted with Chapala, but if you send them a PM with a link to this thread they'll probably respond in a few days... if they're not already updating or writing a new article for their website.

 

[Billy]

Yes, we are holding on. After today's drop the S&P is down 42% from its high. Although I have long believed that there was an over supply of housing, I missed the banking issues that we are now dealing with. I doubt that I am alone. To say the least, this is ugly.​

As Nords noted, we are in Mexico where we both are busier than we would like to be. Akaisha was trained in Thai massage while we were in Thailand and is now teaching Mexican ladies at the tennis courts so that we can keep the players injury free or at least get them back on the courts quickly. I took on a project that was lingering which is to put lighting on the two courts I built. Both of these ventures are very time consuming but we believe will they benefit the community once completed. Besides this we both play tennis 4-5 times per week.​

The silver lining in all of this financial mess is that since we've been in Mexico, the Dollar has gained 30% on the Peso. Since our rent is priced in Pesos as well as food, transport etc. things are 30% less expensive.​

At least we can eat rice and beans.​

Billy​

 

[lazygood4nothinbum]

Yes, we are holding on. After today's drop the S&P is down 42% from its high. Although I have long believed that there was an over supply of housing, I missed the banking issues that we are now dealing with.

apparently it was an over supply of money.​

NPR Media Player​

i love their explanation because it is something i can picture. according to this "global pool of money," it took several centuries to get to us$35 trillion and then over the course of 6 years (2000-2006), the world of investments suddenly got another $35 trillion because “a lot of countries that used to be poor, that had no real savings, suddenly became rich.”

brazil, india, china made what the west wanted. those countried banked profits and then invested twice as much money as the world had. it found a patsy in the u.s. housing market. picture filling a balloon with more air than it can handle without stretching it out first. pop!

i don't know which is a worse way to view it. the usa as perpetrator or as patsy.

either way, enjoy mexico. send me a taco.

 

[WM]

That was a great link, thanks lazy!

I wish they'd continued the story a little further, but I'll start another thread for that...

 

[Billy]

Lazy,
Here's your order...Enjoy, Billy

 

[lazygood4nothinbum]

mmmmm. thinly sliced tofu tacos. looks delicious. thank you ~

 

[ladelfina]

delicious looking!!!

Lazy.. stop with the "too much money"!!.. if there were really too much money people would be paying off their mortgages and putting money into banks and stocks, etc., not taking it out. Instead, there has been too much debt.

 

[lazygood4nothinbum]

ladel, my comment about an over supply of money was just a cute response to billy's comment of "an over supply of housing" while keeping in mind both your very own referenced video of leverage inherent in the capitalist banking system ($100 loaned for each $10 deposited) and the notion of developing & highly populated countries coming into their own in an already taxed system. just a quick & reflexive response, not an economic treatise. it was meant only as a comment on what wetted the appetite; it was not meant to digest the entirety of events as they have since been upchucked nor to the quality of the harvest, nor to characterize the fertility of the field into which such seeds were blown.

just because the initial push is not the final cause of the disaster at the bottom of a hill from where a boulder has just come crashing down, does not absolve the initial push of money looking for places to invest.