Below is some perspective and performance data. It is not specific information about any individual client. Please check your Client Web Portal for your Performance Summary, or contact me to schedule a conversation.
PERSPECTIVE
- Most of us are, and should be, invested in portfolios that are diversified, with exposure to various types of stocks and bonds, and even to some cash and alternative investments.
- But that means we are unlikely to do as well as the hottest market indexes in up years (or as badly as the worst-performing indexes in down years).
- Here is how each type of diversified investor "should" have performed* in 2017 (assuming invested suitably for their risk tolerance):
Aggressive +14.3%
Moderately Aggressive +12.1%
Moderate +9.8%
Moderately Conservative +7.7%
Conservative +4.6%
*gains/losses of the benchmark for each risk profile, minus 1% to account approximately for advisory fees deducted from accounts' performance.
PERFORMANCE OF PORTFOLIO MODELS
- Here are the performance data for various portfolio models my firm created and run for clients, along with some of the popular competition.
- Most clients are using "Strategic III" models, with 95 being "aggressive", 40 being "moderately conservative", and so forth.
| US and Foreign Indexes | 3 mo | 1 yr | 2 yr | 3 yr | 5 yr | 10 yr | 2008 | |
| Stock Markets (72-21-7) | 5.7% | 21.0% | 13.8% | 8.1% | 10.8% | 4.3% | -41.0% | |
| S&P 500 PR | 6.1% | 19.4% | 14.4% | 9.1% | 13.4% | 6.2% | -38.5% | |
| Dow Jones Industrial Avg PR | 10.3% | 25.1% | 19.1% | 11.5% | 13.5% | 6.4% | -33.8% | |
| MSCI EAFE | 3.9% | 21.8% | 9.3% | 4.9% | 5.0% | -0.9% | -45.1% | |
| MSCI EM | 7.1% | 34.4% | 20.8% | 6.6% | 1.9% | -0.7% | -54.5% | |
| Barclays Agg Bond--US | 0.4% | 3.5% | 3.1% | 2.2% | 2.1% | 4.0% | 5.2% | |
| Citi WGBI nonUSD (foreign bonds) | 1.6% | 10.3% | 6.0% | 2.0% | -0.3% | 2.4% | 10.1% | |
| Aggressive (90% stocks-10% bonds) | 4.7% | 15.3% | 12.0% | 6.5% | 8.5% | 4.2% | -36.0% | |
| 95 Strategic III | 5.8% | 17.9% | 14.0% | 8.6% | 11.5% | 8.6% | -30.9% | |
| 95 Schwab index 2017 | 4.7% | 19.2% | 14.4% | 9.3% | 12.1% | 6.8% | -34.3% | |
| 95 Strategic USA II | 5.9% | 17.6% | 15.0% | 8.9% | 13.8% | 10.5% | -25.8% | |
| Confluence Value Opportunities | -22.3% | |||||||
| Confluence Equity Income | -18.9% | |||||||
| WealthFront 9 | 5.6% | 22.4% | 15.8% | 8.6% | 9.2% | 4.9% | -38.1% | |
| American Funds Port Ser Growth | 5.9% | 24.5% | 16.4% | 11.3% | 14.2% | 7.4% | -39.5% | |
| American Funds Port Ser Global Growth | 5.2% | 27.2% | 15.7% | 10.9% | 12.4% | 6.1% | -40.3% | |
| Moderately Aggressive (75-25) | 4.0% | 13.1% | 10.5% | 5.8% | 7.3% | 4.2% | -31.0% | |
| 80 Flex IV | 4.0% | 14.7% | 10.4% | 5.2% | 6.2% | -17.5% | ||
| 80 Flex V | 4.2% | 15.4% | 9.8% | 5.1% | 7.6% | -16.9% | ||
| 80 Strategic II | 3.8% | 17.7% | 13.9% | 8.0% | 10.1% | 8.1% | -31.1% | |
| 80 Strategic III | 5.1% | 16.1% | 12.7% | 7.9% | 10.4% | 8.2% | -27.7% | |
| 80 USA tilt | 3.8% | 15.4% | 12.9% | 7.4% | 10.1% | 7.8% | -28.5% | |
| 80 Schwab index 2017 | 4.0% | 16.3% | 12.0% | 7.9% | 10.2% | 6.1% | -29.3% | |
| Money 75 | 4.3% | 16.8% | 13.8% | 8.6% | 10.2% | 6.7% | -32.7% | |
| American Funds Port Ser Gr+Inc | 4.6% | 18.8% | 13.6% | 8.8% | 11.3% | 6.2% | -32.7% | |
| Moderate (60-40) | 3.2% | 10.8% | 8.9% | 5.0% | 6.1% | 4.1% | 25.6% | |
| 60 Strategic III | 4.1% | 13.1% | 10.7% | 6.6% | 8.5% | 7.4% | -23.3% | |
| 60 Schwab index 2017 | 3.2% | 13.1% | 9.7% | 6.4% | 8.3% | 5.4% | -23.8% | |
| American Funds Port Ser Balanced | 3.6% | 16.2% | 11.3% | 7.3% | 9.2% | 5.8% | -28.5% | |
| Moderately Conservative (40-60) | 2.4% | 8.7% | 7.1% | 4.1% | 4.5% | 3.7% | -17.4% | |
| 40 Strategic III | 3.2% | 10.3% | 8.9% | 5.4% | 6.6% | 6.6% | -16.8% | |
| 40 Schwab Index 2017 | 1.9% | 9.2% | 6.7% | 4.5% | 5.6% | 4.4% | -16.2% | |
| Hartford Balanced Income A | 3.4% | 11.5% | 11.3% | 7.3% | 8.2% | 7.4% | -18.5% | |
| Conservative (20-80) | 1.5% | 5.6% | 4.9% | 2.8% | 2.6% | 3.2% | -8.4% | |
| 20 Strategic III | 1.4% | 5.6% | 6.1% | 3.7% | 3.6% | 4.4% | -9.3% | |
| 20 Schwab index 2017 | 1.3% | 6.1% | 4.1% | 3.0% | 3.7% | 3.4% | -9.2% | |
| 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 relatively low-cost and tax-efficient portfolios. They are comprised mostly 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 is specific investment advice to any individual or organization. If the information hereon is of interest to you, please send e-mail to Info@PotomacWealthStrategies.com for a consultation. | ||||||||
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