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"As senior columnist Jeff Benjamin wrote in last week's issue, any portfolio that earned a return equal to the Standard & Poor's 500 return was assuming too much risk. A diversified portfolio in stocks and bonds should have returned less than 5%"
Lets hope Jeff is not also a financial adviser (wizard), because if HE couldn't get more than 5% out of the market the last 6-7 years, he would be writing investment articles for a living......OH he is...sorry
I think Jeff was referring to last year.,A poor showing by international equities and bonds was probably the main reason diversified portfolios (including the asset allocation within funds underperformed as did exposure to small and midcaps Without checking records I suspect that the S+P outperfornmed a very large number of funds from 92-97
You noted: "A poor showing by international equities and bonds was probably the main reason diversified portfolios (including the asset allocation within funds underperformed." Would agree that 2014 favored large cap and U.S.; with sm/mids having some trouble, as well as some int'l.
Not sure which bonds you refer, as to poor performance, excepting junk which fell away during the last half of 2014.
Comments
Lets hope Jeff is not also a financial adviser (wizard), because if HE couldn't get more than 5% out of the market the last 6-7 years, he would be writing investment articles for a living......OH he is...sorry
You noted: "A poor showing by international equities and bonds was probably the main reason diversified portfolios (including the asset allocation within funds underperformed."
Would agree that 2014 favored large cap and U.S.; with sm/mids having some trouble, as well as some int'l.
Not sure which bonds you refer, as to poor performance, excepting junk which fell away during the last half of 2014.
Otherwise, as to some bond types for 2014:
--- IEF = 9.1%
--- LQD = 8.2%
--- BOND = 6.6%
--- AGG = 6%
Regards,
Catch