Performance Data for Model Portfolios Through February 2015

With the U.S. stock market significantly outperforming most other asset classes in 2014, there is temptation to load-up on U.S. holdings in our portfolios.  I still strongly recommend diversification.  There is Nobel Prize-winning research supporting the "asset allocation" methods I employ.  My goal is to have folks strike the optimal risk/reward balance.

Here is what has been happening in my Strategic and Flex models:

US and Foreign Indexes		3 mo	1 yr	3 yr	5 yr	10 yr	2008
Stock Markets (50-40-10)		2.2%	8.0%	12.6%	11.4%	6.7%	-39.7%
S&P 500		2.3%	15.5%	18.0%	16.2%	8.0%	-37.0%
MSCI EAFE		2.8%	0.0%	9.4%	7.8%	4.8%	-43.4%
US OE Diversified Emg Mkts		-2.2%	2.8%	0.5%	3.4%	7.1%	-54.4%
Barclays Agg Bond--US		1.2%	5.1%	2.8%	4.3%	4.8%	5.2%
Barclays Agg Bond--Global		-1.7%	-2.8%	-0.1%	2.4%	3.6%	4.8%
Aggressive		2.3%	6.9%	12.4%	11.1%	6.3%	-36.3%
95 Flex V		1.0%	4.5%	10.3%	10.0%		-19.1%
95 Strategic II		2.3%	7.6%	14.7%	14.6%	9.5%	-35.6%
95 Schwab index		3.3%	6.7%	14.1%	12.8%	7.3%	-37.2%
WealthFront 9		1.4%	7.0%	9.7%	9.9%	7.3%	-38.0%
Moderately Aggressive		2.1%	6.2%	11.1%	10.4%	6.2%	-32.0%
80 Flex V		0.9%	4.3%	9.8%	9.7%		-16.9%
80 Strategic II		2.1%	6.3%	12.3%	12.5%	8.8%	-30.0%
80 Schwab index		2.9%	6.5%	12.1%	11.4%	6.7%	-32.1%
Moderate		1.5%	4.9%	8.6%	8.6%	5.9%	-23.1%
60 Flex V		0.5%	4.3%	9.0%	9.3%		-13.1%
60 Flex IV		0.8%	2.7%	6.7%	8.3%		-13.0%
60 Strategic II		1.7%	5.8%	10.3%	10.9%	8.1%	-23.9%
60 Schwab index		2.5%	6.6%	9.9%	9.8%	6.1%	-25.6%
Goldman Sachs Income Builder		1.3%	4.9%	10.0%	10.5%	6.6%	-23.3%
American Funds Balanced Port		1.8%	8.0%	11.4%	10.8%	6.9%	-28.2%
Moderately Conservative		0.9%	3.5%	6.0%	6.8%	5.4%	-13.3%
40 Flex V		0.2%	4.7%	8.7%	9.2%		-13.1%
40 Strategic II		1.3%	6.2%	9.7%	9.7%	7.7%	-17.7%
40 Schwab Index		2.1%	6.1%	7.5%	8.0%	5.3%	-18.8%
Conservative		0.4%	2.1%	3.4%	5.0%	4.8%	-2.5%
20 Flex V		-0.2%	4.4%	7.6%	8.6%		-5.2%
20 Strategic II		0.9%	5.2%	7.5%	7.6%	6.7%	-10.5%
20 Schwab index		1.7%	5.4%	4.9%	5.9%	4.3%	-11.7%
NOTE 1:  Past performance is no guarantee of specific future results.  This data is presented by Potomac Wealth Strategies, LLC.  This data is from Morningstar and should be accurate, but it has not been independently verified.
NOTE 2:  "Flex", "Strategic", and "Index" models are crafted/run by Potomac Wealth Strategies.  They show history of better returns, lower volatility, or both--or, with the Index models, closer tracking--vs benchmarks and competitors.
NOTE 3:  "XX Schwab index" models are low-cost portfolios.  They are comprised of index funds available free of transaction charges to my clients at Schwab.  This is what many might recommend due to low-costs and portfolio efficiency.
NOTE 4:  Nothing on this blog post represents investment advice to any individual or organization.  If the information hereon is of interest to you, please contact me at Garo.Partoyan@PotomacWealthStrategies.com for a consultation.