Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

For regular SAA and TAA portfolios, the next re-balance will be on Monday, July 11, 2016. You can also find the re-balance calendar for 2015 on ‘Dashboard‘ page once you log in.

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Managed Futures For Portfolio Building

Investing in commodities is mostly through futures market. Even though one can purchase and hold commodities physically, the logistics (storage, transportation etc.) just makes this approach much harder, if not unfeasible. Futures are contracts for speculators to bet whether the underlying commodity price is going to rise or fall in the future. Long-ing a futures means betting the underlying commodity price is goingup while short-ing a futures means betting it to go down. 

In the long term, it is believed that commodity prices can keep up with inflation. However, this assertion has been challenged because nowadays inflation is impacted by many other factors such as service cost, technology (think about your smart phones and computers), in addition to material cost. Furthermore, commodity prices can experience a secular downtrend in a very long period of time. For example, DBC (PowerShares DB Commodity Tracking ETF), an ETF that tracks the prices of a broad base basket of commodities has had a -4.1% annual return for the past 10 years (see the table below). It is thus challenging to invest in commodities in a long only fashion. 

Managed futures invest in futures using both long and short approaches. Since futures in general exhibit rising and falling trends, managed futures try to long futures that exhibit a rising trend while shorting those that are in a downtrend. It should be noted that even though futures are predominantly commodities, they also include financial futures which are for interest rates, currencies and even stock market indices. 

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