Sector Watch & My Kids Portfolio : Passive Income Report April 2019

Past weekend we spend a great weekend in Budapest for a Financial Independence Conference with the name FIWE 2019. People from different countries came together to discuss the path to financial independence or to learn from young entrepreneurs how they did it. We will post next weekend our reflection on the weekend.

So let’s move on to our Kids Portfolio. A portfolio I started with 10.000 Euro. We will grow this portfolio as an emergency fund for our kids and try to grow it as big as possible.

Market Sentiment and Sector Watch

The market sentiment did change quickly after the weekend. Trump did throw a tweet to the Chinese negotiators and threatens to impose additional tariffs. Trump says China ‘broke the deal’ in trade talks, so they will pay through tariffs.  China vows retaliation if Trump raises tariffs. China vowed to defend its own interests and retaliate if President Donald Trump goes ahead with more tariff hikes in a dispute over trade and technology. Personally I think this is a war that Trump never can win… Chinese think in long term perspective and they will survive a Trump presidency… no doubt. So the markets took a breath at all time highs. No surprise here. Will we go lower ? Are there black swans at the horizon ? We will see.

Let’s take a look at the Sector Watch. Here we look which sectors we should invest in and what is different compared to last month. We placed the latest Sector Watch graph below…This always allows you to make your own analysis.

All sectors had a strong rebound. Also the energy sector has been on an upward trend.  

 

 

                           

One sector that remains strong is the Technology sector. We spoke last month about triple leveraged ETF TECL. It was 140$ at the time of the March blogpost…did you catch this additional move and profit ? It went to 170$. That is 30$ profit per share. Another one to put on your radar screen is the Semiconductors sector. Here you can invest or use the ETF tracker SMH. This chart had also a nice bullish trend. Invest in the strong sectors. That’s our key recommendation. 

 

Be aware we are not a financial advisor. Execute your own risk analysis and investment research. Read our disclaimer. We hope this sector review was useful for you to understand market opportunities and how we analyse potential opportunities.

Let’s dive in the passive income update for my kids portfolio.

Passive Income Update

During the month of April 2019, we received 85,25$  passive income with 11,76 interest and the rest dividend income. No options premium. this time This gives us a total of 1166,08$ after 4 months…

 

So let’s review how the options worked out.

Options Trade review

So what happened in April with my puts ? Well, the stock price stayed below the strike price of 12$ and so we got assigned 200 shares JNUG at the price of 12$.

YES !! So avoiding the PRIIPS bank rule is possible ! Just start writing puts.

 

So we received the 200 shares and the share price is now around 7$. That’s okay. We don’t have a problem with that.  My average purchase price is 10,6$ as I already received a lot of premium.

So in May we have 2 more puts that can expire. 1 put at a strike of 9$ and another one at the strike price of 12$. If Trump continues to disturb the  markets, gold will go up again. Maybe JNUG can go above 9$. I don’t mind having another 200 shares of JNUG in my portfolio. We will not write yet covered calls on those positions.  We will see first what will happen at the expiration date of May.

Going forward

So we did hit our yearly target already and now it’s just a matter of reviewing what will happen with the puts in May and June. We will additionally receive dividend income. We are now 17% above our yearly objective. Let’s maximize our cash flow this year.

Let’s grow the money in our kids pockets.

This is the end of our blogpost. Did you realize more than 1000$ for your kids in four months ? No ? Then you should start investing in your own knowledge. Putting your money on a savings account is not a strategy to grow your kids money.

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