Monday, November 19, 2018

Perspective on Portfolio Performance, Market Performance

It has been a frustrating year for investors, as the markets have been up and down a lot and many of us are at about breakeven so far.  But my clients have been doing well compared to the benchmarks, and that is a high-priority goal I have for long-term investors.

For perspective, here are some Year-To-Date returns (through Friday) for comparison:

S&P500 (USA stock mkt)                                         +2.34%
PWS' 75-25 moderately-aggressive benchmark        -1.73%
Vanguard Target Retirement 2035 mutual fund         -1.74%
MSCI EAFE index (large foreign companies)           -9.36%
Barclays Aggregate Bond index (USA bond mkt)     -1.95%

The S&P500 is the biggest portion of the moderate through aggressive portfolios, but since it represents just the largest USA-based stocks, those portfolios have a lot of other components (small companies, foreign stocks, cash, bonds, commodities).

If you have any questions or concerns about what benchmark is right for you, or how your portfolio is doing compared to the benchmark, please let me know and we will discuss it and make sure you are invested the right way for you risk tolerance and investment goals.

Thank you.

--Gary Partoyan
Potomac Wealth Strategies, LLC