1 Sept 2015
Dear friends and clients:
September is not starting out very well for the stock market, with prices today down about 3% for stocks, while Gold and Bonds up about 1/3 of one percent.
For the month of August, a diversified portfolio (25% each) of stocks (S&P 500), bonds (20 yr. Treasury), and Gold and Cash (money market) resulted in a loss of about 1%. Stocks fell 6%, the bonds and cash were essentially break-even, while Gold rose 3.7%.
More importantly, maximum drawdown of the portfolio (the lowest return during the month on a daily close), was just -2.6% on the diversified portfolio, vs. -11.2% for the stocks. That's important and represents the volatility of an all-stock portfolio in a falling market for stocks.
Stay diversified my friends!
Barry Unterbrink, C.R.P.C.
Tuesday, September 01, 2015
Gold and Bonds Assist a Diversified Portfolio
Posted by Barry Unterbrink at 9/01/2015 04:15:00 PM
Barry Unterbrink is a fee-based Chartered Retirement Planning Counselor and wealth manager. He and his father, Larry Unterbrink, have experience as portfolio managers for institutional pension funds totaling $100 million, Investment Advisory Presidents and financial newsletter publishers. See http://www.stetsonwealthmanagement.com for more information.