Posted by For the month of October, the DOW lost 381 points. From the low on Oct 27 (32417) to Nov 2 (33839) the Dow gained 1422 that it had lost. Interest and dividend income was $3718 for the month, but overall account value dropped by $17,576. Withdrawals for living expenses came to $1172. So far this year, my investments have gained only 1.36%. I sold 100 shares of FDRR (dividend ETF) and bought 50 shares of QCLN (green energy ETF) and 100 shares of FREL (real estate ETF). My QCLN shares are down over 17% in the last month. I didn’t expect electric auto companies to drop in value so quickly. I kept adding shares as the price was falling. That usually doesn’t work out for me, but I expect this ETF to recover. It was as high as $56 per share back in July and has been falling steadily since then. I may have to hold this one for a while before I see a profit.
The Fed decided to keep the federal-funds rate at 5.25-5.50% during their November meeting. This was expected and it is looking less likely that there will be an increase next month. With several wars going on around the world and numerous mass shootings, there is enough bad news to keep investors from making any money. Prices for food and household items seem to have stabilized. New and used car prices are still higher than they should be. Most people can no longer afford a new vehicle. I was planning on replacing my car in 2019, just before I was laid off from a job that paid $68K per year. Now, my annual income is only a small fraction of that. Luckily, I don’t need to drive as much these days. But, at some point, I will need to replace my car. I imagine trying to get a loan without steady income from a job will be very difficult. I will have to lower my expectations and look for something that is more in line with my new income level. Maybe a golf cart?
I hear reports that many Americans have exhausted their savings. When that happens credit card debt increases. Americans total credit card balance was $1.031 trillion in the second quarter of 2023. This is the first-time credit card debt has topped $1 trillion in this country. Average card debt among cardholders with unpaid balances in December 2022 was $7,279. More than half (56%) of all active accounts carried a balance in the third quarter of 2022. As you can imagine, these numbers are much higher now. It is a good gauge of how you are doing financially, if you can still pay off your credit card balance each month.