Investing Newsletter – Jan 2015
US Stocks & US REITs were the top performing asset classes in 2014.
Globally diversified multi-asset class portfolio returns were disappointing in 2014 relative to US Stocks.
Asset class outperformance trends normally reverse themselves over time.
Selling out of an asset class due to a couple years of underperformance is unwise.
The temptation to sell commodity positions after such poor performance should be resisted.
Rebalancing a diversified portfolio on a periodic basis is often the most prudent strategy.
Stock and bond returns could be lower than the historical averages over the next 7 – 10 years.
We expect the First Trust Deed investment we use will continue providing solid, predictable returns.