RomesBlog Newsletter #2!

Author

David Soto
March 01, 2025

Portfolio Progress

Welcome back to my fellow readers. This is newsletter number 2, and I am happy you all decided to check it out. Thank you for your support!

My portfolio has been stagnant this month, I’ve been focused on putting money into my debt. I have however put $50 a month right now into my Roth just to keep the account growing. However, February has proven to be a bad month for me. I am down roughly $100 on my portfolio due to every stock taking a hit. I am not phased by this as the market will always have its red days or weeks, and I just must handle the storm and ride out the waves. Speaking about my debt, I was able to reduce it by a large amount in the last couple months. I went from $29,657.26, to $23,325.14. This is a $6,332.12 difference. I used my tax refund to help with this.

Currently, I doubled my dividends for the month of February. This has been my goal for this year to double each month’s earnings. Last year this month, I was at $8.42 in dividends and right now I am sitting at $15.04.  I hope this motivates people to stay the course and continue pushing on. Imagine what this will be in a few years!

I decided to add a payout calendar to my spreadsheet so I can estimate what my monthly dividends would be and around what dates to expect them. Please keep in mind that the payout dates do fluctuate depending on the day they land on, so they are estimates and I am not too worried about that. Eager to know your thoughts on this, and how do you make sure each month is balanced. This is a good thing to add if you are a new investor or a seasoned one. Knowing how much you have coming in each month will help you balance your portfolio. Otherwise, you run the risk of one month being amazing and another being very low. For example, you could run into an issue where February you make $2k dividends but in March you only make $1k. That is a big difference, especially during retirement. This will help you even out your income. Also, the calendar below looks a little high on dividends and that’s because I haven’t had time to update my spreadsheet with current share prices and dividend yields. I do this monthly but I’ve been super busy.

Market Update

February showed a mix of gains and significant declines, reflecting a volatile month influenced by economic data, corporate earnings, and global developments. Early in the month, stocks started strong but eventually got hit with a massive red wave. The last two weeks of February saw my portfolio take a roughly $100 hit. Overall, February has been a rollercoaster for the stock market, starting with optimism and record highs but ending with significant declines as economic uncertainties persist.

What about March? The Federal Reserve’s next interest rate decision, expected around mid-March, could either stabilize or further unsettle markets. After scaling back rate cut expectations in late 2024 to just two for 2025, any hint of tighter policy to combat inflation might keep borrowing costs elevated, pressuring stock valuations. From what I’ve seen on X, a lot of accounts have a bearish view for this. We will have to wait and see what this coming month brings for us.

Crypto Update: February

This month, the cryptocurrency market experienced significant volatility and a general downturn. Bitcoin (BTC) fell from January highs above $108,000 to around $83,175 by February 28th, reflecting a correction that pulled the global crypto market cap down to $2.94 trillion, a 3.60% drop. Ethereum (ETH) also weakened, facing its worst February on record despite earlier ETF inflows. Some altcoins like Maker (MKR) surged, but most followed the broader slump. Contributing factors included declining consumer confidence, profit-taking, delayed U.S. crypto policies, and macroeconomic pressures. Despite some bullish signals, the month ended with a mostly cautious, bearish sentiment.

 

Advice for New Investors

1. Invest in what you understand.

a. Learn about the company and what they are all about. Learn about tax implications too, as not every stock is the same when it comes to the money you earn from them.

2. Diversify.

a. Make sure you cover a wide range of sectors to protect yourself from one or more taking a hit in the market.

3. Reinvest dividends.

a. Make sure you keep reinvesting every dividend you get so they can compound and grow your portfolio faster.

4. Be patient.

a. After you paint a wall, you don’t immediately hang stuff up do you? Learn to wait and let your money grow.

5. Don't chase performance.

a. A stock can promise you a hundred things and fail the next day. Pick stocks that have a proven track record, not a fancy one.

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DISCLAIMER

This is not financial advice, just my personal opinion. Be sure to consult a licensed professional before making any significant financial decisions.

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