May 6, 2019: Global Allocation Revisited

by | May 7, 2019 | Asset-Allocation, Bonds, Economy, Feature, Gold, Headline, Income, Inv, Investments, IRA, Markets, Mutual-Funds, newsletter, Portfolios, Retirement

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

For regular SAA and TAA portfolios, the next re-balance will be on Tuesday, May 28, 2019. You can also find the re-balance calendar for 2019 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.

Global Allocation Revisited

Asset allocation is the key framework to construct a balanced portfolio that meets investment goals. Global allocation advocates that international stocks and bonds are important assets that can diversify risk while keeping or improving returns. 

Unfortunately, in the past 10 years since the last recession, international stocks (including emerging market stocks) have been more harmful than helpful to a portfolio. In fact since 2010, there was only one year (2017) when VEA (international stocks) (the second row in the following table) returned more than SPY. Similar underperformance of VWO (emerging market stocks) to SPY can be observed: 

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