How did my clients fare? Well, that's obviously a personal and private matter for each client, but this blog entry shows performance data for the three most commonly-used portfolios in my practice.
For September 2011:
S&P 500: -7.0%
80 Fidelity: -7.0%*
80 Flex III: -9.1%
60 Flex III: -8.0%
40 Flex III: -6.9%
For 2011-q3 (7/1 through 9/30):
S&P 500: -13.8%
80 Fidelity: -13.6%
80 Flex III: -9.4%
60 Flex III: -8.1%
40 Flex III: -6.8%
For 2011 YTD (1/1 through 9/30):
For 2011 YTD (1/1 through 9/30):
S&P 500: -8.7%
80 Fidelity: -9.2%
80 Fidelity: -9.2%
80 Flex III: -5.5%
60 Flex III: -4.3%
40 Flex III: -3.2%
For the 10-yr period ending 9/30/11**:
SP 500: 2.7% per year
80 Fidelity: 4.7% per year80 Flex II: 11.0% per year
60 Flex II: 10.4% per year
40 Flex II: 9.8% per year
* 80 Fidelity is a portfolio of very popular and widely-available index funds from Fidelity Investments allocated in a 80% stocks, 20% bonds strategy similar to that of the 80 Flex portfolios, and I want to compare the two; the 80 Fidelity portfolio uses a style-pure, buy-hold-rebalance method, while the 80 Flex portfolio allows for a great deal of tactical adjustments within the 80% stock long-term strategy.
** Not all Flex III funds were available for the full 10-year period, but all Flex II funds were.
The Stock-Bond-Alternatives-Cash allocation percentages are approximately:
80 Flex III: 47-9-17-27
60 Flex III: 35-17-14-34
40 Flex III: 24-25-10-41
I still believe staying the course with a global/flexible portfolio is, for most investors, probably a lot better than trying to time the market. Please contact me with your questions or thoughts. Thank you!
--Gary
(FYI, my own retirement portfolio remains mostly in 80 Flex III.)
Garo Linck Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC
(703) 746-8195
Garo.Partoyan@PotomacWealthStrategies.com
www.PotomacWealthStrategies.com
