Retirement Planning Advice and Financial Related Education by Barry Unterbrink, Chartered Retirement Planning Counselor

Tuesday, September 01, 2015

Gold and Bonds Assist a Diversified Portfolio

                                                                                         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.

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