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 Friday April 1, 2022. 

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.

Quality Sectors Prevail

Since we started our newsletters in 2011, this is the very first time this newsletter author feels a persistent downward pressure in both financial markets and economies. For the past three months or so, there was always some substantial market turbulence every time we started to write a newsletter. We have no doubt that our readers are feeling the same. 

In this newsletter, we would like to remind our readers of a very important phenomenon in investing: quality matters. We will review a portfolio based on ‘good’ S&P sectors and see how it’s doing right now. We then proceed to discuss current market situations in some details. 

Quality matters: “good” S&P sectors

By now, quite some speculative investors should have felt heat in their investments. For example, ARK Innovation ETF (ARKK), a proxy to high flying growth stocks, has literally lost two third of its value from its peak set last February. Compared with broad market indexes, it doesn’t seem to be that much stellar anymore, in fact, it underperformed Nasdaq 100 index ETF (QQQ) since its inception in 2014:

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