Hong Kong Dollar CD: rolled over at .13%

The Hong Kong Dollar CD matured on Friday, May 15th and was rolled over into a new Hong Kong Dollar CD at a yield of .13%.  Upcoming maturity dates in 2009 are August 14th and November 13th.

Model Portfolio Update: January 2009

The final contents of the Doppler Value Model Portfolio for December 2008 were:
$62,186.90 USD in the Doppler Value Treasury Money Market Fund
$80,457.02 HKD total balance in the Everbank Hong Kong Dollar CD ($10,380.61 USD)
2 shares of BRKB ($6,428.00 USD)
222 shares of DFJ ($8,591.40 USD)
103 shares of FXY ($11,339.27 USD)

The total market value of the Doppler Value Model Portfolio at the end of December 2008 was $98,926.18 USD.

Since there were no purchases, sales, CD redemptions, or dividends on stocks during January 2008, the credited balance in the Doppler Value Treasury Money Market Fund remained constant at $62,186.90. The average yield on the 1-month Treasury Bill in December 2008 was .030%, and the average yield on the 3-month Treasury Bill in October 2008 was .697%. The average of these two figures is .360%, and subtracting that gives us .064%, the cash yield for January 2009. $3.38 USD of interest accrued during the month, bringing the final cash balance of January 2009 to $62,190.28 USD.

The Everbank Hong Kong Dollar CD ended January 2009 with a credited balance of $80,353.54 HKD and accrued interest of $103.48 HKD. An additional $68.25 HKD of interest accrued, bringing the total accrued interest from $103.48 HKD to $171.73 HKD and the total balance of the CD to $80,525.27 HKD. At an average exchange rate of 7.75590 HKD/USD on the last day of the month, the total balance of the Hong Kong Dollar CD is $10,382.45 USD.

At the end of the month, the 2 shares of BRKB had a market value of $5,978.00 USD, the 222 shares of DFJ had a market value of $7,612.38 USD, and the 103 shares of FXY had a market value of $11,422.70 USD.

The final contents of the Doppler Value Model Portfolio for January 2009 were:
$62,190.28 USD in the Doppler Value Treasury Money Market Fund
$80,525.27 HKD total balance in the Everbank Hong Kong Dollar CD ($10,382.45 USD)
2 shares of BRKB ($5,978.00 USD)
222 shares of DFJ ($7,612.38 USD)
103 shares of FXY ($11,422.70 USD)

The total market value of the Doppler Value Model Portfolio at the end of January 2009 was $97,585.81 USD, a drop of 1.4% from the end of December 2008.

Model Portfolio: 2008 in Review

From inception on May 8th, 2008 to December 31st, 2008, the Doppler Value Model Portfolio went from a balance of $100,000.00 to $98,926.18 for a loss of 1.1%.  Although the Doppler Value Model Portfolio lost money, it overwhelmingly outperformed every major market index, such as the DJIA and S&P 500.  The Japanese yen investment (FXY, CurrencyShares Japanese Yen Trust)  did very well, and the Everbank Hong Kong Dollar CD outperformed cash (which isn’t saying much given pitifully low interest rates), but Berkshire Hathaway Class B (BRKB) and the Japanese stock investment (DFJ, WisdomTree Japan Small-Cap Dividend ETF) both took hits.

It’s only because I was having difficulty finding bargains and then too busy to look that I kept more than 60% of the portfolio in cash.  The Doppler Value Model Portfolio didn’t miss my attention.  If I had gotten around to deploying more of the cash, the portfolio would have taken a much bigger hit than a 1.1% loss.

Despite the possibility of further losses, I am determined to deploy most or all of the cash balance.  Since the stock market has much lower valuations now than was the case when I first started this blog, I should be able to find bargains in the weeks and months ahead.  Treasury Bill yields are microscopic.  The combination of Helicopter Ben, trillions of dollars in bailouts added to the already enormous national debt, and the monetization of this debt (Fed printing money in order to buy the debt securities)
threatens to jump-start hyperinflation.  In this Brave New World, US Treasury Bills are now a potential time bomb instead of a safe haven.  While we all still need cash for everyday expenses, the proverbial “rainy day” (especially in this economy), and expenses coming up in the next few years, we cannot expect our cash to hold its value.  When inflation does strike, Helicopter Ben will be slow to raise interest rates, which will quickly erode the value of cash and fuel even more inflation.

Model Portfolio Update: December 2008

The final contents of the Doppler Value Model Portfolio for November 2008 were:
$62,056.59 USD in the Doppler Treasury Money Market Fund
$80,388.77 HKD total balance in the Everbank Hong Kong Dollar CD ($10,371.54 USD)
2 shares of BRKB ($6,998.00 USD)
222 shares of DFJ ($7,892.10 USD)
103 shares of FXY ($10,744.96 USD)

The total market value of the Doppler Value Model Portfolio at the end of November 2008 was $98,063.19 USD.

The credited balance in the Doppler Treasury Money Market Fund was $62,056.59 USD from the 1st to the 22nd. DFJ paid a dividend of $.511 USD/share on December 22nd, so the credited balance increased by $113.44 . The credited balance from the 23rd through the 31st was $62,170.03. The average credited balance for the month was $62,089.52. The 1-month Treasury Bill yielded an average of .093% in November 2008, and the 3-month Treasury Bill yielded an average of 1.147% in September 2008. The average of these two figures is .62%, and .3% less is .32%, our yield for December 2008. Accrued interest for the month was $16.87 USD (about $.54 USD/day). At the end of the month, the accrued interest was credited. Adding the month’s initial credited balance ($62,056.59), the dividends ($113.44), and the interest ($16.87) gives us the final credited balance of $62,186.90 in the Doppler Treasury Money Market Fund.

The credited balance in the Everbank Hong Kong Dollar CD remained at $80,353.54 HKD for the entire month. $68.25 HKD of interest accrued during December 2008 (about $2.20 HKD/day), bringing the accrued interest from $35.23 HKD to $103.48 HKD. This brings the total balance in the Everbank Hong Kong Dollar CD to $80,457.02 HKD. At an exchange rate of 7.7507 HKD/USD, the Hong Kong Dollar CD ended December 2008 with a market value of $10,380.61 USD.

At the close of December 2008, the 2 shares of BRKB had a market value of $6,428.00 USD, the 222 shares of DFJ had a market value of $8,591.40 USD, and the 103 shares of FXY had a market value of $11,339.27 USD.

The final contents of the Doppler Value Model Portfolio for December 2008 were
$62,186.90 USD in the Doppler Treasury Money Market Fund
$80,457.02 HKD total balance in the Everbank Hong Kong Dollar CD ($10,380.61 USD)
2 shares of BRKB ($6,428.00 USD)
222 shares of DFJ ($8,591.40 USD)
103 shares of FXY ($11,339.27 USD)

The total market value of the Doppler Value Model Portfolio at the end of December 2008 was $98,926.18 USD, a gain of around .9% compared to the end of the previous month.

Model Portfolio Update: November 2008

The final contents of the Doppler Value Model Portfolio for October 2008 were:
$62,019.79 USD in the Doppler Treasury Money Market Fund
$80,322.80 HKD in the Hong Kong Dollar CD ($10,360.49 USD)
2 shares of BRKB ($7,680.00 USD)
222 shares of DFJ ($7,594.62 USD)
103 shares of FXY ($10,399.91 USD)

The total market value of the Doppler Value Model Portfolio at the end of October 2008 was $98,054.81.

We began the month with $62,019.79 USD in the Doppler Treasury Money Market Fund. The credited balance remained constant at $62,019.79 USD. The 1-month Treasury Bill yielded an average of .292% in October 2008, and the 3-month Treasury Bill yielded an average of 1.753% in August 2008. The average of these two figures is 1.02%, and .3% less is .72%, the yield of the Doppler Treasury Money Market Fund for November 2008. $36.80 USD in interest accrued during the month, bringing the balance to $62,056.59 USD at the end of the month.

At the beginning of the month, the Hong Kong Dollar CD had a credited balance of $80,151.52 HKD and accrued interest of $171.28 HKD, for a total balance of $80,322.80 HKD. The Hong Kong Dollar CD matured on Friday, November 14th. During the first 14 days of the month, an additional $30.74 HKD of interest accrued (about $2.20 HKD/day), bringing the total accrued interest to $202.02 HKD. At maturity, the accrued interest was credited, bringing the total balance of the Hong Kong Dollar CD to $80,353.54 HKD.

The $80,353.54 HKD from the old CD was rolled over into a new Hong Kong Dollar CD at an interest rate of 1.00% and a maturity date of Friday February 13th, 2009. From the 15th to the 30th, $35.23 HKD in interest accrued (about $2.20 HKD/day) while the credited balance remained at $80,353.54 HKD. This brought the total balance in the Hong Kong Dollar CD to $80,388.77 HKD. The average exchange rate for November 30th was 7.75090 HKD/USD. The total balance in the Hong Kong Dollar CD at the end of the month was $10,371.54 USD.

At the close of November 2008, the 2 shares of BRKB had a market value of $6,998.00 USD, the 222 shares of DFJ had a market value of $7,892.10 USD, and the 103 shares of FXY had a market value of $10,744.96 USD.

The final contents of the Doppler Value Model Portfolio for November 2008 were:
$62,056.59 USD in the Doppler Treasury Money Market Fund
$80,388.77 HKD total balance in the Hong Kong Dollar CD ($10,371.54 USD)
2 shares of BRKB ($6,998.00 USD)
222 shares of DFJ ($7,892.10 USD)
103 shares of FXY ($10,744.96 USD)

The total market value of the Doppler Value Model Portfolio at the end of November 2008 was $98,063.19 USD, virtually unchanged compared to $98,054.81 USD at the end of the previous month.

Model Portofolio Update: October 2008

The final contents of the Doppler Value Model Portfolio for September 2008 were:
$61,968.69 USD in the Doppler Treasury Money Market Fund
$80,254.73 HKD in the Everbank Hong Kong Dollar CD ($10,328.66 USD)
2 shares of BRKB ($8,790.00 USD)
222 shares of DFJ ($8,455.54 USD)
103 shares of FXY ($9,669.95 USD)

The total market value of the Doppler Value Model Portfolio at the end of September 2008 was $99,212.84 USD.

Since there were no purchases or sales during October 2008, the credited balance in the Doppler Treasury Money Market Fund remained at $61,968.69 USD for the entire month.  The 1-month Treasury Bill averaged a yield of .886% in September 2008, and the 3-month Treasury Bill averaged a yield of 1.655% in July 2008.  The average of these two figures is 1.271%, and subtracting .3% gives us .971%, the yield in the Doppler Treasury Money Market Fund for October 2008.  The total accrued interest on this cash for the month was $51.10 USD (about $1.65/day).  The total cash balance at the end of the month was $62,019.79 USD.

The credited balance in the Hong Kong Dollar CD remained at $80151.52 HKD for the entire month.  We started the month with $103.21 HKD in accrued interest.  At a 1% yield, we accrued an additional $68.07 HKD in interest during the month (about $2.20 HKD/day), bringing the total accrued interest at the end of the month to $171.28 HKD.  The total balance of the Hong Kong Dollar CD was $80,322.80 HKD at the end of the month.  At an exchange rate of 7.7528 HKD/USD, the total balance of the Hong Kong Dollar CD ended the month at $10,360.49 USD.

At the end of October 2008, the 2 shares of BRKB had a market value of $7,680.00 USD, the 222 shares of DFJ had a market value of $7,594.62 USD, and the 103 shares of FXY had a market value of $10,399.91 USD.

The final contents of the Doppler Value Model Portfolio for October 2008 were:
$62,019.79 USD in the Doppler Treasury Money Market Fund
$80,322.80 HKD in the Hong Kong Dollar CD ($10,360.49 USD)
2 shares of BRKB ($7,680.00 USD)
222 shares of DFJ ($7,594.62 USD)
103 shares of FXY ($10,399.91 USD)

The total market value of the Doppler Value Model Portfolio at the end of October 2008 was $98,054.81, down by about 1.2% for the month.

Model Portfolio Update: September 2008

The final contents of the Doppler Model Portfolio for August 2008 were:
$61,893.15 USD in the Doppler Treasury Money Market Fund
$80.188.85 HKD in the Everbank Hong Kong Dollar CD ($10,271.14 USD)
2 shares of BRKB ($7804.00 USD)
222 shares of DFJ ($9031.85 USD)
103 shares of FXY ($9439.95 USD)

The total market value of the Doppler Model Portfolio at the end of August 2008 was $98,440.09 USD.

The 1-month Treasury Bill yielded an average of 1.679% in August 2008, and the 3-month Treasury Bill yielded an average of 1.89% in June 2008. The average of these two figures is 1.785%, and subtracting .3% from this gives us 1.485%. So the Doppler Value Treasury Money Market Fund yielded 1.485% during September 2008. The credited balance was $61,893.15 USD for the entire month, so $75.54 of interest accrued during the month (roughly $2.52/day). This brought the balance in the Doppler Treasury Money Market Fund to $61,968.69 USD.

At the beginning of the month, the Everbank Hong Kong Dollar CD had a credited balance of $80,151.52 HKD and accrued interest of $37.33 HKD. Interest continued to accrue at 1.00%, or an additional $65.88 HKD (about $2.20/day). The Hong Kong Dollar CD ended the month with an accredited balance of $80151.52 HKD, accrued interest of $103.21 HKD, and a total balance of $80,254.73 HKD. At an exchange rate averaging 7.7701 HKD/USD on the last day of September, the total balance in the Everbank Hong Kong Dollar CD was $10,328.66 USD.

At the end of September 2008, the 2 shares of BRKB had a market value of $8,790.00 USD, the 222 shares of DFJ had a market value of $8,455.54 USD, and the 103 shares of FXY had a market value of $9,669.95 USD.

The final contents of the Doppler Value Model Portfolio for September 2008 were:
$61,968.69 USD in the Doppler Treasury Money Market Fund
$80,254.73 HKD in the Everbank Hong Kong Dollar CD ($10,328.66 USD)
2 shares of BRKB ($8,790.00 USD)
222 shares of DFJ ($8,455.54 USD)
103 shares of FXY ($9,669.95 USD)

The total market value of the Doppler Value Model Portfolio at the end of September 2008 was $99,212.84 USD, a rise of .8% from the market value of $98,440.09 at the beginning of the month.

Model Portfolio Update: August 2008

The final contents of the Model Portfolio for July 2008 were:
$61,820.48 USD in the Doppler Treasury Money Market Fund
$80,120.85 HKD in the Hong Kong Dollar CD ($10,267.43 USD)
2 shares of BRKB ($7658.00 USD)
222 shares of DFJ ($9463.86 USD)
103 shares of FXY ($9519.26 USD)
The total value of the Model Portfolio at the end of July 2008 was $98,729.03 USD.

The 1-month Treasury Bill yielded an average of 1.604% in July 2008, and the 3-month Treasury Bill yielded an average of 1.764% in May 2008. The average of these figures is 1.684%, and subtracting .3% gives us 1.384% as the yield on the Doppler Treasury Money Market Fund for August 2008. The credited balance was $61,820.48 USD every day of the month, so the accrued interest was $72.67 USD (around $2.34 USD/day). The final cash balance for August 2008 was $61,893.15 USD.

On Friday, August 15th, the Everbank Hong Kong Dollar CD was rolled over into a new CD that matures on Friday, November 14th, with the yield unchanged at 1.00%. From August 1st-14th, an additional $30.67 HKD (about $2.19 HKD/day) of interest accrued. Since we ended July 2008 with $170.85 HKD in accrued interest, the total accrued interest for the term of the old CD was $201.52 HKD. Adding this to the already credited balance of $79950.00 HKD brings us a new credited balance of $80,151.52 HKD to roll over into the new CD and resets the accrued interest to $0.00 HKD. From August 15th-31st, $37.33 HKD of interest accrued (roughly $2.20 HKD/day). This brings the total balance in the Hong Kong Dollar CD at the end of August 2008 to $80.188.85 HKD. At an exchange rate of 7.80720 HKD/USD, this is the equivalent of $10,271.14 USD.

At the end of August 2008, the 2 shares of BRKB had a market value of $7804.00 USD, the 222 shares of DFJ had a market value of $9031.85 USD, and the 103 shares of FXY had a market value of $9439.95 USD.

The final contents of the Doppler Model Portfolio for August 2008 were:
$61,893.15 USD in the Doppler Treasury Money Market Fund
$80.188.85 HKD in the Everbank Hong Kong Dollar CD ($10,271.14 USD)
2 shares of BRKB ($7804.00 USD)
222 shares of DFJ ($9031.85 USD)
103 shares of FXY ($9439.95 USD)

The total market value of the Doppler Model Portfolio at the end of August 2008 was $98,440.09, a drop of .3% from the market value of $98,729.03 USD at the start of the month.

Model Portfolio Report for July 2008

The final contents of the Model Portfolio for June 2008 were:
$61,756.59 USD in the Doppler Treasury Money Market Fund
$80,052.95 HKD ($10,258.33 USD) in the Everbank Hong Kong Dollar CD
2 shares of BRKB ($8024.00 USD)
222 shares of DFJ ($9801.30 USD)
103 shares of FXY ($9671.70 USD)

The final value of the Doppler Model Portfolio for June 2008 was $99,511.92 USD.

The 1-month T-Bill yielded an average of 1.724% in June 2008, and the 3-month T-Bill yielded an average of 1.312% in April 2008. The average of these figures is 1.518%. Subtracting .3% gives us 1.218%. Thus, the yield of the Doppler Treasury Money Market Fund for July 2008 is 1.218%. The credited cash balance was $61,756.59 USD for the entire month, so the accrued interest was $63.89 USD (around $2.06 USD/day), bringing the total at the end of the month to $61,820.48 USD.

The credited balance of the Hong Kong Dollar CD remained at $79,950 HKD for the entire month. We entered the month with $102.95 HKD of accrued interest and added an additional $67.90 HKD of accrued interest. This brings the total balance in the Hong Kong Dollar CD to $80,120.85 HKD. At the exchange rate of 7.80340 HKD/USD at the end of the month, the total final balance of the Hong Kong Dollar CD equated to $10,267.43 USD.

At the end of July 2008, the 2 shares of BRKB were worth $7658.00 USD, the 222 shares of DFJ were worth $9463.86 USD, and the 103 shares of FXY were worth $9519.26 USD.

The final contents of the Model Portfolio for July 2008 were:
$61,820.48 USD in the Doppler Treasury Money Market Fund
$80,120.85 HKD in the Hong Kong Dollar CD ($10,267.43 USD)
2 shares of BRKB ($7658.00 USD)
222 shares of DFJ ($9463.86 USD)
103 shares of FXY ($9519.26 USD)

The total value of the Model Portfolio at the end of July 2008 was $98,729.03 USD. Compared to the $99,511.92 USD value at the start of the month, this was a drop of .8%.

Model Portfolio Report for June 2008

The final contents of the Doppler Model Portfolio for May 2008 were:
$61,694.68 USD in the Doppler Treasury Money Market Fund
$79,987.24 HKD in the Everbank Hong Kong Dollar CD ($10,246.37 USD)
2 shares of BRKB ($8996.00 USD)
222 shares of DFJ ($10391.82 USD)
103 shares of FXY ($9749.18 USD)

The final total value of the Doppler Model Portfolio for May 2008 was $101,078.05 USD.

The 1-month T-Bill yield averaged 1.759% in May 2008, and the 3-month T-Bill yield averaged 1.284% in March 2008. The average of these two figures is 1.521%, and subtracting .3% from this gives us 1.221%. Thus, the yield of the Doppler Treasury Money Market Fund was 1.221% for June 2008. The credited cash balance for the entire month was $61,694.68 USD, so the accrued interest was $61.91 USD (roughly $2.06 USD/day). This brought the final cash balance for June 2008 to $61,756.59 USD.

The credited balance of the Hong Kong Dollar CD remained at $79,950 HKD for the entire month. We entered the month with $37.24 HKD of accrued interest. An additional $65.71 HKD of interest accrued during the month (roughly $2.19 HKD/day), bringing the total accrued interest to $102.95 HKD and the total balance to $80,052.95 HKD, worth $10,258.33 USD at the rate of 7.8037 HKD/USD.

At the end of June 2008, the 2 shares of BRKB were worth $8024.00, the 222 shares of DFJ were worth $9801.30, and the 103 shares of FXY were worth $9671.70.

The final contents of the Model Portfolio for June 2008 were:
$61,756.59 USD in the Doppler Treasury Money Market Fund
$80,052.95 HKD ($10,258.33 USD) in the Everbank Hong Kong Dollar CD
2 shares of BRKB ($8024.00 USD)
222 shares of DFJ ($9801.30 USD)
103 shares of FXY ($9671.70 USD)

The final value of the Doppler Model Portfolio for June 2008 was $99,511.92 USD, compared to $101,078.05 USD for the end of May 2008. This was a loss of around 1.5%.