I do a traditional balance sheet in CHF, then translate the equity to USD and EUR. All currencies had new highs in December.
My house has a value of zero, actually minus 100k, but my land is worth a lot since the change of construction zones. So I calculate the land price minus 100k for the house on it. For my vacation home in Spain I calculate half of the current value. Real estate in Spain is very volatile. That means a lot of gain for the real estate, but stocks did gain even more. In all currencies…
I used the low dollar to switch most of my debt to CHF. I pay 0.87% for the margin credit and 0.75% for the mortgage. Soon one will not be able to deduct debt interest from tax any longer, so I decided to take that little risk. The risk is little because as I already displayed in several charts Forex volatility is peanuts compared with stocks. And there has not been a 5 years period where the interest difference was lower than the value change. Since the first world war the CHF is the only currency that had a significant rise compared with the USD. But this year the U.S. will repossess the oil business in Venezuela and that may change the picture.
I am criticized quiet a lot because I calculate stocks in USD. I trade exclusively in US markets and want to measure the performance and compare it to indices. I spend mostly EUR (which is a failed currency, I don’t hold any more than needed), then CHF, then USD.
Pension is for my wife who still works, the tax is what she will have to pay if this doesn’t change until then.
This is my balance sheet in CHF:
