Hello:
I close my month out on the last Friday of each month with the exception being in December. With this, my best performing investment sleeve, year-to-date, within my portfolio was my growth & income domestic hybrid fund sleeve with a return of 2.73%. The next best fund sleeve was my hybrid income sleeve with a return of 2.45% followed by my fixed income fund sleeve with a return of 1.87%. Overall my portfolio has returned year-to-date 1.7% while the Lipper Balanced Index has returned 1.3%. In addition, my reference sources are indicating that the market as a whole to be at about a two percent premium with the S&P 500 Index trading on a Forward Estimated P/E Ratio of 15.6 and a Trailing P/E Ratio of 17.7 with the Index at it’s present reading of 1857. My three best perfroming funds were as follows: TOLLX up 5.44%, JCRAX up 5.14% and FRINX up 4.87%. My three worst performing funds were as follows: DEMAX down 2.72%, MFADX down 2.44% and CCMAX down 2.16%. All of these are mostly growth oriented type funds.
This past quarter I have been buying around the "edges" and have found value in certain emerging markets and have noticed that value has performed better than growth and generally that fixed income has outperformed most equity. In addition, both my commodity and my real estate hybrid funds performed well. My target portfolio asset allocation remains at about 20% cash, 25% income, 45% equity and 10% alternative. The equity side of my portfolio historically has carried an overweight in the defensive sectors of utilities, health care and consumer staples. In times of uncertainty, I have often found that this has been an aid to better performance. In addition, these type holdings are often my higher yielding ones.
I have also noticed this past quarter that the market has been pushed around a good bit by head line news events and the high frequency trading crowd has been apparently, at times, been keying on this news. Thus the markets have been mostly news driven. Perhaps, they will soon be finding a footing and some upward movement can be achieved. First Quarter 2014 earning season is soon to start … and, with this, it is from my thinking anybody’s guess as to what will transpire during the upcoming reporting season along with the uncertainity that we now find with some global hot spots. I am thinking, things could get worse before they get better.
Have a good weekend … and, I wish all “Good Investing.”
Old_Skeet
Comments
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@Old_Skeet: What are your reference sources, preferably with a URL?
Thanks! And congratulations.
Thanks to those that made comments and requested information.
I am providing two of my reference links for those that might not have booked marked them in the past form my previous posts. From time-to-time I do provide some reference links with my posts. This time I did not.
Morningstar’s Market Valuation Graph is linked below and provides their fair value assessment of the market. Currently, they rate the market at about a two per cent premium over fair value.
http://www.morningstar.com/market-valuation/market-fair-value-graph.aspx
In addition, I have linked the WSJ’s link to P/E’s & Yields on the major Indexes.
http://online.wsj.com/mdc/public/page/2_3021-peyield.html?mod=wsj_mdc_additional_ustocks
I am sorry that this answer is short in nature but I am running short on time and need to get to a family birthday celebration.
I sincerely wish all “Good Investing.”
Old_Skeet
As you requested … Another look under the hood on my conservative allocation portfolio which consists of about 20% cash, 25% Income, 45% Equity and 10% Alternatives as recently analyzed by Morningtar’s Instant Xray. I have listed it below by area and sleeve. The portfolio consists of four major areas. The Cash Area which consists of two sleeves ... a cash investment sleeve which holds time deposits and a demand cash sleeve which holds demand cash. An Income Area which consist of two sleeves a fixed income sleeve and the other one is the hybrid income sleeve. The Growth & Income Area consists of four sleeves. They are a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and the fourth one is the domestic hybrid sleeve. The final area is the Growth Area and it also holds four sleeves. They are the global, international and emerging market sleeve, a domestic large/mid cap sleeve, a domestic small/mid cap sleeve and the final sleeve is a specialty sleeve that can hold just about anything. Each sleeve holds between three to six funds with the exception being the cash sleeves which hold cash investments only. Generally no fund is more than sixty percent of its sleeve nor less than five percent. To adjust the sleeve’s weighting within the portfolio can easily be done by adjusting the number and the size of each position held within the sleeve. Should one of the funds within its sleeve falter then there are the others that can provide support and continue to propel the sleeve. A recent example of this was in 2013 as PASAX was the laggard within its sleeve. The other five funds performed well and with this the sleeve as a whole turned out to be a good performer.
MASTER PORTFOLIO … Currently consists of 51 funds. Looking for number 52.
CASH AREA …
Investment Cash Sleeve … Time Deposits
Demand Cash Sleeve … Demand Cash
INCOME AREA … Currently consists of 12 funds.
The Fixed Income Sleeve holds six funds. They are as follows: ITAAX, LALDX, THIFX, LBNDX, NEFZX and TSIAX.
The Hybrid Income Sleeve holds six funds. They are as follows: AZNAX, CAPAX, FKINX, ISFAX, PASAX and PGBAX.
GROWTH & INCOME AREA … Currently consists of 18 funds.
The Global Equity Sleeve holds three funds. They are as follows: CWGIX, DEQAX and EADIX.
The Global Hybrid Sleeve holds three funds. They are as follows: CAIBX, IGPAX and TIBAX.
The Domestic Equity Sleeve holds six funds. They are as follows: ANCFX, FDSAX, INUTX, NBHAX, SPQAX and SVAAX.
The Domestic Hybrid Sleeve holds six funds. They are as follows: AMECX, CFIAX, DDIAX, FRINX, HWIAX and LABFX.
GROWTH AREA … Currently consists of 21 funds.
Global, International & Emerging Market Sleeve holds six funds. They are as follows: ANWPX, PGROX, THOAX, DEMAX, NEWFX and THDAX.
The Domestic Large/Mid Cap Sleeve holds five funds. They are as follows: AGTHX, HWAAX, IACLX, SPECX and VADAX.
The Domestic Small/Mid Cap Sleeve holds five funds. They are a follows: IIVAX, KSDVX, PCVAX, PMDAX and SEVAX.
The Specialty Sleeve holds five funds. They are as follows: CCMAX, JCRAX, LPEFX, MFADX and TOLLX.
I am by no means saying this portfolio is a model portfolio that one should follow as a good bit of it was accumulated over time through a taxable account, a self directed ira account and a couple 401k accounts, a health savings account plus an inheritance. It is combined for management purposes into one and is know by me as my Master Portfolio. At times, I will change a position out for another … but, not often. Its oldest holding is FKINX which I have owned for the past fifty plus years since about the age of twelve and was purchased from money I received years ago as a gift (not a lot) from my late great grandfather.
I hope in some way this helps you.
Old_Skeet