August and September, 2020 Update

Our net worth rose in August by 8.34% and then fell in September by 5.96% in dollars. The EUR figures are similar.

In August, we, along with anyone who owned stocks corresponding to the U.S indexes, saw our wealth shoot up rapidly. It was both fun and unnerving, since the biggest news related to Apple and Tesla's stock splits. Sure enough, shortly after both companies split their stock, the markets began to fall.

The good thing about having survived March by just watching prices plummet, is that normal corrections barely register. Now, if we suffer a protracted decline à la 2001-2002, that might be harder to stomach. But the truth is, I'm not done saving: I want prices of great companies to fall. I was nervous in August because I knew we wanted to buy more stock, rising prices now lowers future returns.

The Election

I am not changing anything about my financial goals in response to the election. That doesn't mean I'm not worried. I've imagined all sorts of horrible scenarios, such as:

• Consequences for Americans abroad due to strained relations between the US and its allies
• A closing off of American society that begins to affect the lives of Americans abroad
• A drastic change to the tax code that doesn't adequately incorporate the needs of US expats
• A collapse of the rule of law in the US
• Major civil unrest and/or civil war

I hope none of these things happens. I don't think any of them will (though the US probably isn't done writing tax laws that harm citizens abroad), but I'd be a fool not to imagine them, especially since things like this have already happened.

It's worth imagining. It's also worth remembering that the U.S. tends to figure its problems out and that having some faith in the country is likely the best course of action. You know, it's the "Triumph of the optimists".

Outlook

I'm not expecting a major change in October. We're continuing to save for the piano, and we've planned on renting to buy beginning in December. That will cost us more money vs. buying it all at once, but I view it as buying an insurance policy: just in case the world falls apart and I lose my job, I have an out. If we get to December 2021, and all is well, it will be easier to part with the full cost.

Good luck out there. It's a weird and stressful time. We've been getting some laughs by watching Cobra Kai on Netflix. I've heard it described as a guilty pleasure, but I don't feel guilty at all liking it.