New Year, Same Falcons – February 2018 Financial Update
The following financial update for February 2018 covers all performance and happenings from the month of January, and is based on the latest valuation date of 2/1/2018.
Well that was quick. Back to reality. Our short term windfall of Monopoly money (aka Ripple) has shrunk. Back to lagging the S&P. It’s just pretend until you’re holding it in cold, hard cash.
|SFE Share Price||MoM Change in Price||Portfolio Value||Cash||Overall Return|
That overall return was sitting just shy of 29% last month. We were probably up to almost a 50% overall return a few weeks ago. Now?
The final numbers don’t really tell the story of the huge run up in Ripple and subsequent crash. The intra-month gain and loss of over $10k hurts, but it was never really ours.
2018 Performance to Date
Nothing like starting the year in a hole. But I think we secretly like playing from behind. We’re underdogs, and it makes for good internet comeback stories.
At the end of the day, the change in value this month was all crypto driven. Our stock portfolio actually continued to rebound and creep up this month.
We’ll chalk this up to a healthy correction in the crypto markets (and perhaps a healthy buying opportunity as well?)
Transactions in the Period
|1/22/2018||Sell||Sold 2448 Ripple||$3,329|
|1/22/2018||Buy||Bought 3.1 ETH||-$3,329|
We collected some dividends, so we have that going for us, which is nice. Only a month in to 2018, and we have $71 of real profit. Given our track record, we’ll take it.
We also dumped Ripple in lieu of a theoretically more stable Ethereum, as we wait to see exactly what other coins we may want to get involved with.
Although we missed the $3 top on the huge Ripple rally, we did get out (and into ETH) around $1.36 or so, which was well over the $0.17 buy in price. Hindsight is great, but a realized 700% gain is pretty nice too.
Still pretty cash poor, which will hinder us from quickly buying any further dips without adding new contributions or liquidating other assets.
Chart of the Month
As you can see from this great chart from Coin Market Cap, a lot of money was made and lost in the Crypto markets in January. Ripple was a major culprit, but the meltdown was across the board.
Fortunately, we are playing it somewhat conservative, only allocating a portion of our portfolio to this alternative asset class. We’ve also been keeping a long term perspective, so we aren’t too bothered by these short term swings either.
We’d throw up another chart showing that the meager $500 billion of market cap in crypto is but a drop in the bucket of the overall multi-trillion dollar investment landscape, but you already know.