2021 Q2 – Blue Jean Recap

“A good pair of denim doesn’t really need to be washed in the washing machine except for very infrequently or rarely.”

Levi’s CEO and President Chip Bergh

The market and the economy are undoubtedly amazing machines to behold.

I previously wrote that I’m pessimistic about our current market; nearly every stock is overpriced (at least the ones I generally follow). Though the market continues to trudge upward, my outlook has not changed, and I’ve increased my cash holdings to take advantage of any break in this market.

Inflation has hit 5%, jobs still aren’t back where they need to be, and businesses are having difficulty reopening. I flew a couple of weeks ago for the first time in a year, and the airlines/airports are a disaster.

That said, I’m not opposed to owning a business if I can get in at a reasonable price.

Our overall net worth has increased by 55% YTD. That feels odd even typing that. A good portion of that is our home, and I don’t fully trust those numbers. We’ve met and exceeded our goal of a 30% increase in our net worth this year, even excluding our home.

I’ll reiterate, this isn’t my doing or because I made some great moves in the market – the market is just that nuts right now.

I’ve made changes to my graphs since the last post.

First, I broke down the 401k rather than just letting it sit independently. Breaking it out gives a better idea of what we’re sitting in and, I believe, provides a much better view of how much risk is in the portfolio.

When I discuss options, we should remember those options are a relatively small portion of my portfolio. They’re a more significant portion than I want now, as I’d like to keep them closer to 5%.

I have decided to increase my holdings in both cryptocurrencies (mainly Bitcoin) and bonds. At the moment, I’ve given each of these a target of 10%. However, I may change this as my comfort levels adjust.

Beware, I’m not increasing my Bitcoin holdings for purely speculative reasons. I’ve been learning more about the lightning network, a layer that sits on top of BTC and allows faster transactions and lower fees, and I’m looking into supporting this effort.

As for the bonds, I cannot stand them right now. However, it is my opinion that I should carry some. The most considerable portion of my bond holdings exists in my 401k in a bond index, and I’ve picked up a single I-bond from the US Treasury, which has an interest rate that, at least, keeps up with inflation and has reasonable tax treatment.

It might be a good time to complain about not having the ability to do more than just funds in my 401k – if any of my legislators decide to read this.

My Current Holdings

State Street S&P 500 Index

AAPL 06/16/23 @ 100 C BTO
AAPL 06/16/23 @ 100 C BTO
AAPL 07/23/21 @ 128 P STO
AAPL 07/30/21 @ 146 C STO
T 06/16/23 @ 100 C BTO
T 07/23/21 @ 31 C STO
SPX 07/16/21 @ 3885 P STO
SPX 07/16/21 @ 3880 P BTO

State Street US Bond Index
US I Bonds


Photo by Anne Nygård on Unsplash

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