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

Regular AAC (Asset Allocation Composite), SAA and TAA portfolios are always rebalanced on the first trading day of a month. the next re-balance will be on Tuesday June 1, 2021. 

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.

Inflation, Sub Zero Interest Rate …

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness”.

What was said in Charles Dickens’ ‘A Tale of Two Cities’ 150 years ago describes very well our current situation and dilemma: our economy is roaring back and there has been a recognition that government stimulus can work regardless of the debts incurred. On the other hand, inflation is coming, valuations of stocks and bonds and other financial assets are at some nose bleeding levels. Speculation abound in crypto, SPAC, …

Or just like what Warren Buffett said in this weekend’s Berkshire Hathaway’s annual meeting, ‘Charlie and I consider it the most interesting movie by far we’ve ever seen in terms of economics,’. 

In this newsletter, we discuss several important topics in the context of the Buffett’s thinkings from the latest Berkshire’s meeting.

Economy recovery

The US economy has experienced an extremely strong recovery. The US GDP growth in the first quarter of 2021 was 1.6 percent, or 6.4% on an annualized basis.  Between goods and services, consumer spending on goods has shot up way above the last quarter of 2019, before the pandemic:

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