it’s time for cheese again, it is time for The Cheesy Index!
February 2017 Cheesy Index
This month we are very pleased to report another increase (starting to get “boring” eh?). We are up to 59.5%, that’s 1.3% for the month, an insane MOM increase! In this pace we will hit our target for 2017 already somewhere halfway the year. This cannot be right? Funny thing is, we even saw a bit of a drop at the end of February, which kind of recovered in early march again. Our month-end wealth was therefore actually a bit lower than during the surrounding days. Interesting thing is that this happened at the end of January too (and if I recall correctly, I’ve seen this happy a few times in 2016 as well). Not sure why? Any ideas as to month end market/currency fluctuations? Have not done an in depth analysis, but I’m starting to notice a trend. Perhaps I’m just tired from Miss CF being ill last week and I’m now seeing/remembering things that do not exist. It happened before 😉
Echanges Rates – Part two
As to the exchange rates comment from last month, it looks like we have hit a new “bottom” for now. Based on our month-end numbers we have seen a slow and steady Euro weakening since early 2016. But exchange rates seem to have stabilized somewhat (i.e. exchange rates of the last two months were very similar), which also means less paper gains for February. This means that growth in the Cheesy Index for February is more “organic” (actual investment gains). Which is good, don’t really want to see “artificial” wealth gains, that would disappear during the next currency fluctuations.
This actually brings us to an interesting topic, hedging. At this stage we don’t hedge our investments, simply because we are in the accumulation phase. But when we will reach the withdrawal stage, steady cash-flow is a lot more critical. Perhaps we have to start looking at hedging or making bond reserves to withdraw from during large exchange rate fluctuations?
How did you do February? Another record high for you too, let us know!