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The author analyzed all rolling six month returns for the S&P 500 and 5 Yr. Treasuries for the period ending June 30, 2022. Link
S&P 500: worst 3% of all 6 month returns since 1926. 5 Yr. Treasuries: second-worst 6 month returns ever ¹. 60/40: worst 2% of all 6 month returns since 1926.
Ya, everyone's darling: PRWCX. down ytd. -13.64%. ....Even so, just out of the top one-third in category.
I think a lot of TRP’s funds have suffered more than one might expect this year. Like to look at PRSIX and TRRIX because they are roughly 40/60 and have long appealed to older more conservative investors. Of course it’s the bond component that has really hurt them. Have been slowly scaling out of behemoth PRWCX. Down to a “foot in the door” hold. Likely to exit if the markets remain down and I decide to risk-up.
@hank, I would not bail on PRWCX since it is closed to new investors. Link above explains the consequences of stocks and treasury being down at the same time. Just about all allocation funds are down this year. There are a number stock funds and ETFs are doing better than that of S&P500 this year. I would focus on the defensive funds until we get through the rate hikes.
BTW, there are few bright sectors (energy and commodities) this year and now they are declining a bit. Several alternatives that @lynnbolin suggested last month are doing well.
You mentioned that you have D&C balanced fund. Think it is leading the allocation funds so far this year.
For the past decade+, this has been my 'set it and forget it' fund. I hope I don't get snookered by that complacency, but I just don't see any information to suggest it is other than a superior balanced fund, a core fund.
@MikeM - It’s not a “negative call” on the fund. Aware of its stellar record. But I do have quite a bit in DODBX (similar risk / reward level). That’s directly with D&C. We’ll see how things pan out. I did regret leaving PRHYX many years ago believing they would reopen it some day.
Yes, DODBX is not doing as badly as some others, this year. I'm in the other TRP HY fund: TUHYX. Because PRHYX is indeed closed. Dunno if they're intended to be clones.
Comments
Even though the model 60-40 (60% SP500, 40% 5-yr Treasuries) isn't typical, it gives the general idea that multi-asset funds have been BAD this year.
down ytd. -13.64%. ....Even so, just out of the top one-third in category.
BTW, there are few bright sectors (energy and commodities) this year and now they are declining a bit. Several alternatives that @lynnbolin suggested last month are doing well.
You mentioned that you have D&C balanced fund. Think it is leading the allocation funds so far this year.
For the past decade+, this has been my 'set it and forget it' fund. I hope I don't get snookered by that complacency, but I just don't see any information to suggest it is other than a superior balanced fund, a core fund.
Thanks for chiming in.
@Sven - Thank you also for your comment.