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, August 15, 2016. You can also find the re-balance calendar for 2016Ass 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.

Asset Trend Review

What a difference the last two weeks made! As it stands right now:

  • S&P 500 stock index is at all time high
  • 10 Year Treasury bond yield is at all time low
  • Germany, Japan and Switzerland 10 year government bond yields: negative
  • Britain, France, Spain, Italy 10 year government bond yields are all lower than the U.S:

What happened after Brexit referendum is that interest rates in all major countries fell with the belief of possible strong central bank support or intervention. Friday’s US job report made investors believe that the risk of US economy weakening is removed and it is now in a robust trajectory. This caused a flurry to buy stocks, pushing S&P 500 to its all time high. 

In all fairness, US 10 year Treasury bond yield is still the highest among major developed countries. This is strange as US credit situation is better than that of most of these other countries. However, with all countries are racing to the bottom for yields, investors naturally push US yield further down. Granted, the reasons behind all the asset price movement are more than the above (for example, the currency war is one of the main factors driving sovereignty bonds’ price lower). Nevertheless, what a inter-connected world!

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