Some investors believe they only have one choice: A boat that’s riding the waves for growth or a boat that stays pretty much in calm waters.
We recently sensed bull market sentiment has been looking for reasons to pull in its horns and it did. Lots of speculators took their gains and got out of the stock boat, riding the waves and got into the bond boat…. pretty smooth sailing and great meals!
And what was the stimulus for the hiccup? We think it’s a sentimental journey of uncertainty over the corona virus and travel bans. Scary stuff but, as most other scary stuff, it too will pass followed by other yet unknown scary stuff.
So this past week we experienced a downturn in the market.
- US stocks were down 1.5-3.0%
- Foreign stocks down anywhere from 2-5%.
- Meanwhile nearly all equities are holding double digit returns for the one year trailing period.
Most bonds funds were up (the boat in the smooth waters), except for High Yield Bonds.
We remain in High Yield as they frequently move differently than other bond funds. Good job High Yield Bonds!
Our portfolios represent a fleet in all boats all the time, so that we can navigate in all weather conditions.
So enjoy your weekend!
Indexes are listed in respective order to their reference above: DJ Industrial Average TR USD, S&P 500 TR, DJ US TSM Large Cap Growth TR USD, NASDAQ 100, Technology NTTR TR USD, DJ US Health Care TR USD, DJ US TSM Large Cap Value TR USD, DJ US TSM Mid Cap Growth TR USD, DJ US TSM Mid Cap Value TR USD, DJ US TSM Small Cap Growth TR USD, DJ US TSM Small Cap Value TR USD, FTSE NAREIT All Equity REITs TR, DJ Gbl Ex US Select REIT TR USD, Bloomberg Commodity TR USD, MSCI EAFE NR USD, MSCI EAFE Growth NR USD, MSCI EAFE Value NR USD, MSCI EAFE Small Cap NR USD, MSCI EM NR USD, BBgBarc US Corporate High Yield TR USD, FTSE WGBI NonUSD USD, JPM EMBI Plus TR USD, BBgBarc US Govt 1-3 Yr TR USD, ICE BoafAML 1-3Y US Corp TR USD, BBgBarc Intermediate Treasury TR USD, BBgBarc Interm Corp TR, BBgBarc US Treasury US TIPS TR USD. These materials have been prepared solely for informational purposes based upon data generally available to the public from sources believed to be reliable. All performance references are to benchmark indexes. Performance of specific funds will vary from respective benchmarks. Past performance is not an assurance of future results. Each index cited is provided to illustrate market trends for various asset classes. It is not possible to invest directly in an index. Neither do Indexes reflect individual investor costs, e.g. trading, expense ratios & potential advisory fees.